Approving a multibillion swap of wireless spectrum, The U. S. Federal Communications Commission conditionally approved Verizon Wireless, T-Mobile and four of the biggest cable TV system operators in the U. S. But the FCC is demanding Verizon to meet its goals for rolling out services using the new spectrum and offer data roaming to competitors at fair prices.

What makes this deal so important is the fact that radio frequency spectrum is a finite resource, so it is valuable and vitally important for Verizon and T-Mobile. The amount of spectrum each holds directly affects the speed, reach and strength of wireless service that can be offered to consumers.

The cable companies had bought the spectrum in earlier government auctions but never ended up using it. Verizon plans to use some of the spectrum itself, sell some to T-Mobile under a June 2012 agreement and auction the rest. A second part of the deal involved Verizon and the cable companies reselling each other's services. The companies finalized a deal last year in December and it would see Verizon buy unused spectrum from Comcast, Time Warner Cable, Bright House Networks and Cox Communications.