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Chuck Schumer Comes to AT&T's Defense On Spectrum Restrictions

Senator Chuck Schumer has come rushing to the defense of AT&T and Verizon in a letter to new FCC boss Tom Wheeler, urging the agency not to impose restrictions that could cap the amount of spectrum the nation's dominant carriers can obtain at auction. There has been a growing push (in part by T-Mobile and Sprint) to impose new ownership limits on the largest carriers ahead of next year's auction in order to prevent the carriers from spectrum squatting and thereby limiting the number of competitors that can come to market.

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According to Schumer's letter, capping the amount of spectrum AT&T and Verizon can own moving forward would "lower the potential return and disincentivize broadcasters from offering their spectrum for auction."

Back in April, the Department of Justice warned the FCC that they should potentially cap the amount of spectrum AT&T and Verizon can acquire moving forward to prevent the two companies from hoarding spectrum anti-competitively.

"Today, the two leading carriers have the vast majority of low-frequency spectrum, whereas the two other nationwide carriers have virtually none," wrote the DOJ. "This results in the two smaller nationwide carriers having a somewhat diminished ability to compete, particularly in rural areas where the cost to build out coverage is higher with high-frequency spectrum."

AT&T executives have railed against that recommendation publicly ever since, claiming in an April letter to the FCC (pdf) that such restrictions would be "unlawful."
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amarryat
Verizon FiOS
join:2005-05-02
Marshfield, MA

1 recommendation

amarryat

Member

when is his payout

He must have something to gain
biochemistry
Premium Member
join:2003-05-09
92361

biochemistry

Premium Member

Where is the D?

Usually when one mentions a senator in an article they also mention the party affiliation. In this case, a (D).

workablob
join:2004-06-09
Houston, TX

1 recommendation

workablob

Member

Re: Where is the D?

But Nooo. It's the Republicans that are in the telcos pocket!

'Puts hands over ears and starts singing la la la'

Blob

amarryat
Verizon FiOS
join:2005-05-02
Marshfield, MA

amarryat

Member

Re: Where is the D?

Is that an opinion?

workablob
join:2004-06-09
Houston, TX

workablob

Member

Re: Where is the D?

Certainly not my opinion. Just a bit of sarcasm.

Blob

noc007
join:2002-06-18
Cumming, GA

noc007 to biochemistry

Member

to biochemistry
IMHO both parties are bought and paid for. It's doesn't matter their affiliation. Earlier this the (R) state rep for my district tried to make municipal fiber illegal.

amarryat
Verizon FiOS
join:2005-05-02
Marshfield, MA

amarryat

Member

Re: Where is the D?

That makes sense though. Because from his perspective, govt. shouldn't be involved in "business".
TBBroadband
join:2012-10-26
Fremont, OH

2 recommendations

TBBroadband

Member

Re: Where is the D?

And they shouldn't. Look at the failed businesses. Sports complexes, water/sweage depts that are so far in debt and still cant meet EPA standards from 9years ago.
sandman_1
join:2011-04-23
11111

sandman_1

Member

Re: Where is the D?

said by TBBroadband:

And they shouldn't.

Really? So all of the workplace and Antitrust laws shouldn't of happened? I am glad you aren't making the calls.

amarryat
Verizon FiOS
join:2005-05-02
Marshfield, MA

1 recommendation

amarryat

Member

Re: Where is the D?

What does that have to do with govt. running a business? They've proven over and over that they can't, and when they do it bleeds money. And the answer is to raise taxes.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Where is the D?

And that's an important argument that often gets dismissed when discussing public/private competition. Governments and municipalities often have little motivation to practice fiscal constraint. There's little profit motive and therefore, some of the efficiencies employed by for profit businesses are sometimes ignored. How many cost overruns and project delays do we read about regarding government projects?
egilbe
join:2011-03-07

egilbe

Member

Re: Where is the D?

That's usually caused by a private business contracting out to the government to do the work. Government pays the bills. Business' steal the money from the taxpayers and employ people who pay taxes. Its a pretty convoluted shell game.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Where is the D?

I'm sure you mean governmets contract out work to private industry, not the other way around. Contracts are let to these corporations to provide services/goods. Perhaps governments and municipalities should get better lawyers.
WhatNow
Premium Member
join:2009-05-06
Charlotte, NC

WhatNow

Premium Member

Re: Where is the D?

It is hard for government water/sewer units to raise what they charge as their cost go up each year. When they finally raise the price it looks large because it has not been raised for years. They also can waste a lot of money due to bad management or bad contracts. Natural monopolies like water and other utilities are hard to price.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Where is the D?

said by WhatNow:

They also can waste a lot of money due to bad management or bad contracts.

That's my point.
said by WhatNow:

Natural monopolies like water and other utilities are hard to price.

Why?
TBBroadband
join:2012-10-26
Fremont, OH

TBBroadband to WhatNow

Member

to WhatNow
munis can raise water and sewer rates without problems. Who else are these people going to? They go to the states, they get approved and it moves on. Muni water companies on average charge more than private companies and yet still can't meant gov't regulation from the EPA levels on heath concerns - especially when discharging raw sewage into drinking water supplies. This is a good business??? Not at all. Shows that the cities should NOT be in the business of private business if they can't follow laws. Any one else would be getting fined until no tomorrow for doing those things.
dra6o0n
join:2011-08-15
Mississauga, ON

dra6o0n

Member

Re: Where is the D?

If you could test many cities for 'following the laws' using undercover workers, you'd find many many many cities failing in different types of ways.
TBBroadband
join:2012-10-26
Fremont, OH

TBBroadband to openbox9

Member

to openbox9
its all the time. Gov's do not manage money- they spend it. Especially on projects that they can't manage.
TBBroadband

TBBroadband to amarryat

Member

to amarryat
It's the fact that shows that muni businesses should be illegal and banned not only at the state levels but at the the federal level.
TBBroadband

TBBroadband to sandman_1

Member

to sandman_1
anti-trust and workplace rules and laws have nothing to do with the gov't being in private business.
biochemistry
Premium Member
join:2003-05-09
92361

biochemistry

Premium Member

In general the government should stay out of business. However certain infrastructure requires government intervention to ensure everyone benefits. Electricity for example would never have hit the whole country without the government. Same thing with POTS. I believe also the same way with FTTH. Who was going to wire the entirety of Chattanooga including more rural areas on mountains with FTTH? Certainly not AT&T.
WhatNow
Premium Member
join:2009-05-06
Charlotte, NC

WhatNow

Premium Member

Re: Where is the D?

How is that working? I saw a few reports just as they were about to light the fiber but very little since. All I know is the power company did the project. I think power companies are going to be the ones that give FTTH to the US especially in places like the Chattanooga area.
biochemistry
Premium Member
join:2003-05-09
92361

biochemistry

Premium Member

Re: Where is the D?

The company is owned by the city of Chattanooga.

jseymour
join:2009-12-11
Waterford, MI

1 recommendation

jseymour

Member

Schumer

What I think of Senator Charles Schumer (D, NY) cannot be printed in family-friendly venue.

I wish the good citizens of the state of New York would stop inflicting him on the country.

Jim
Crookshanks
join:2008-02-04
Binghamton, NY

Crookshanks

Member

Re: Schumer

said by jseymour:

wish the good citizens of the City of New York would stop inflicting him on the country.

Fixed it for you.
DeLiver3
Premium Member
join:2004-09-01
Cincinnatus, NY

DeLiver3

Premium Member

Re: Schumer

Well done.

meeeeeeeeee
join:2003-07-13
Newburgh, NY

meeeeeeeeee to Crookshanks

Member

to Crookshanks
said by Crookshanks:

said by jseymour:

wish the good citizens of the City of New York would stop inflicting him on the country.

Fixed it for you.

Wrong... Even though Chuckie Schumer wears a "For Sale" sign at every appearance, the good sheeple of the State of New York vote him in again and again.
devolved
join:2012-07-11
Rapid City, SD

devolved to Crookshanks

Member

to Crookshanks
Well, the good citizens of New York and New York State wouldn't vote for a clown like Schumer. Only scum would vote for guys like him.

n2jtx
join:2001-01-13
Glen Head, NY

1 recommendation

n2jtx

Member

I Aplogize

I live in New York and we (not me personally) put and keep him in office. Remember, the shortest distance in Washington is between Charles Schumer and a camera (so sayeth Bob Dole).

anonome
@verizon.net

anonome

Anon

"disincentivize"?

That almost sounds like a real word, senator.

Corehhi
join:2002-01-28
Bluffton, SC

Corehhi

Member

Looks like

Chuck just wants the government to pocket as much money as possible, probably not much thought other then that. I still find it weird that the government auctions off wave lengths.

••••
Kearnstd
Space Elf
Premium Member
join:2002-01-22
Mullica Hill, NJ

Kearnstd

Premium Member

caps seem like a good thing here

After all they Neither the telcos or the broadcasters own their spectrum, Technically they lease it from the people. The FCC has every right to tell these companies how much they can rent, After all RF spectrum management is the actual purpose of the FCC. Many people seem to forget this their primary reason to exist and think the FCC is just the agency that makes sure nobody says the F word on Network TV or worse a tit jumps out...

rit56
join:2000-12-01
New York, NY

rit56

Member

Schumer

My Senator showing where his true interests are and who he really represents. Not the residents of New York State but the corporations he bows before. Screw you Chuck.
FrontirCynic
join:2006-10-25
Long Beach, CA

FrontirCynic

Member

first amendment...

Allowing ATT to suck up all the spectrum is infringing on my religious freedom. I am a member of www.thechurchorgoogle.org So looks like Im headed to the US Supremes.....

Shills and zealots...all thats left now

"Those are my principles, and if you don't like them, well I have others"
- Groucho Marx
mingkee27
join:2013-06-21
Brooklyn, NY

mingkee27

Member

Schumer, you shall not get my vote

If you sold your karma to mammoths, you're done for good.

rchandra
Stargate Universe fan
Premium Member
join:2000-11-09
14225-2105
ARRIS ONT1000GJ4
EnGenius EAP1250

rchandra

Premium Member

sigh...we need regulation like this

Much as I hate government regulation, we need this. It's like electronic component thermal runaway, where increased current causes heatup, which lowers resistance, which increases current, which causes heatup,... Awarding spectrum to the big, thus denying it from the small, only allows them to starve off the small sooner, and reduce competition, which will eventually allow the big to increase prices to practically any level they like. It's a shame we can't seem to apply antitrust law directly to this, but in effect, because of the scarcity of usable spectrum, it would seem to me this sort of scenario is likely.

Schumer, you're logic is squirrelly, and neither you nor Gillibrand represent me.

Probitas
@teksavvy.com

Probitas

Anon

go cry in your milk

That's all this is worth. Please, please don't force us to share spectrum....
scooper
join:2000-07-11
Kansas City, KS

scooper

Member

Real simple solution for "spectrum squatting"

Build out in a reasonable period of time or you lose it... and the government keeps the money.