**Editor's note: Find out how cable MSOs can generate new revenue from business services with our exclusive, in-depth report from analyst firm NPRG, available now as a free download .**
Verizon Wireless faces a potential problem with its deal to acquire spectrum from Comcast Corp. and two other cable companies.
The U.S. Department of Justice is investigating the agreement, Reuters reported, citing a Justice Department spokesperson.
An antitrust source indicated that the marketing arrangement raises concerns.
"Comcast has decided not to compete and is handing spectrum over to Verizon," the source, who was described as a Justice Department veteran, told Reuters. "They decided to halt the buildout. Instead of us seeing facilities-based competition, it appears that we're seeing collaboration."
The news comes on the heels of AT&T's announcement that it dropped its bid to acquire T-Mobile USA in the face of strong government opposition from the Justice Department and Federal Communications Commission.
Earlier this month, Verizon Wireless announced a $3.6 billion agreement to purchase 122 spectrum licenses that cover 259 million points of presence from SpectrumCo LLC, a joint venture between Comcast, Time Warner Cable and Bright House Networks. The companies also have announced several commercial agreements that will enable the cable operators and Verizon Wireless to sell each other's products and services.
U.S. mobile operators have cited a looming shortage of spectrum as one of the biggest challenges facing the wireless industry.
