Comcast Entertainment Corporation and Verizon Wireless are both known as leading names in their respective fields – cable television and wireless telecommunications. Beginning in 2012, the two companies will begin a sales partnership wherein each will sell the others' products.
According to Reuters, the companies will still compete to a certain extent – for example, Comcast's XFINITY facing off against Verizon Communications' FiOS TV service. Despite this, the businesses plan to sell bundles of each others' cable and wireless and smartphone accessories products.
The news source reports that the deal cost Comcast $3.6 billion. Additionally, although Verizon and Comcast have respectively planned to sell cable and wireless products, Comcast partner company Time Warner Cable has not decided what Verizon products it will sell, or when.
Comcast, who previously partnered with wireless businesses including Sprint and Clearwire, plans to end its relationship with the former in the near future. However, Comcast Cable president Neil Smit stated that his company would be keeping its share of Clearwire for an indefinite period.
According to Forbes, Verizon intends to use wireless spectrum it received from Comcast in the transaction to strengthen its high-speed 4G wireless internet network.