FCC Sets Pleading Cycles in Verizon's Proposed Takeover of XO Assets
The FCC is seeking comment on Verizon's proposed buy of XO Communications and its fiber assets from XO Holdings, said a public notice Tuesday in docket 16-70. Petitions to deny and other comments are due by May 12, with oppositions…
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to petitions and other reply comments due May 27, the PN said. It noted the applicants say their deal won't cause any material adverse harms to consumers or competition (see 1603070041 and 1603220063), but some parties have said the transaction could raise concerns (see 1602220071). The FCC also established a pleading cycle on an application from Verizon Wireless to lease spectrum from NextLink Wireless under 93 local multipoint distribution service (LMDS) and nine 39 GHz licenses. Verizon said it wants to use the spectrum for research, development and early testing of 5G products and services, said a Wireless Bureau public notice. The companies also said in their application that Verizon Wireless has an option to buy from XO Holdings, NextLink’s parent, all of the issued and outstanding limited liability company interests in NextLink. But the companies say Verizon Wireless isn't currently exercising the option, the notice said. “The Applicants state that the lease agreement would authorize Verizon Wireless to use all of Nextlink’s LMDS and 39 GHz spectrum, except for discrete spectrum and geographic areas that are subject to existing leases to third parties or to contractual requirements to reserve spectrum for the use of third parties,” the FCC said. “Under the lease agreement, Nextlink also would lease any Restricted Spectrum to Verizon Wireless when it is no longer subject to a third-party commitment.” Petitions to deny are due at the FCC May 3, oppositions May 13, and replies May 20. Verizon said in its application to buy XO that it sees the deal as tied to the rapid expansion of data usage. “Verizon’s network densification requires deploying additional small cells, distributed antenna systems, in-building systems, and macro cells in capacity constrained areas like urban areas and large public venues,” Verizon said. “These cells enhance the quality and reliability of its existing wireless network, and will also help lay the groundwork for the evolution to 5G technologies, which will rely heavily on small cells.” Verizon wants to position itself as the industry leader as 5G rolls out in coming years (see 1602240021).