dslreports logo
 story category
FCC Could Reserve Large Chunk of Spectrum for Smaller Carriers

In a move that's certain to ruffle the feathers of larger operators AT&T and Verizon, ReCode suggests that FCC Chairman Tom Wheeler is circulating a proposal that would reserve two thirds of upcoming auction spectrum for smaller carriers. If the report is accurate, the agency is going to uncharacteristically do something that angers larger carriers for the sake of competition, heeding DOJ advice given last year that allowing AT&T and Verizon to gobble up all the spectrum could be a death blow to real wireless competition.

Granted whether the FCC sticks to its guns after AT&T and Verizon lobbyists get done whining isn't certain:
quote:
Details of Wheeler’s plan began leaking out Friday evening after FCC staff and company lobbyists were briefed on some details. Wheeler aides began briefing some lawmakers and staff on Capitol Hill earlier this month. The FCC could vote on the plan and release details to the public as soon as mid-May, although some details may change in the coming weeks as industry lobbyists swarm the agency.
It would be an interesting policy move for an agency that traditional talks a lot about competition, but buckles whenever it's time to implement policy that upsets two of the biggest campaign contributors in the industry.
view:
topics flat nest 

battleop
join:2005-09-28
00000

battleop

Member

If you really want competition...

Then this is what it will take. Level the field for the small guy and start ups so they can compete with the companies with billion dollar deep pockets and staff politicians.

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

n2jtx

Member

Re: If you really want competition...

I agree. The only reason AT&T and Verizon are able to gobble up chunks of spectrum now is because many years ago they were given preferential treatment by the government, first in wireline and then in wireless, which allowed them to reach critical mass and grow to become the behemoths they are now. The old Bell companies were given 800MHz spectrum for free back in the 1980's.

While I am all for free market principles, the fact that the damage was already done by the government means the government is going to need to correct it. Allowing things to proceed as they are now to the point where AT&T and Verizon could conceivably wind up owning (technically licensing - the public "owns" the airwaves) 95% of all available spectrum will not help the consumer in any way shape or form.

Resell op
@comcast.net

Resell op to battleop

Anon

to battleop
said by battleop:

Then this is what it will take. Level the field for the small guy and start ups so they can compete with the companies with billion dollar deep pockets and staff politicians.

The move is sound by FCC, but it won't make any real difference. The small guys will buy the licenses and then resell them to AT&T and Verizon and make some very nice profits unless the rules also prevent resale.

battleop
join:2005-09-28
00000

battleop

Member

Re: If you really want competition...

I can see the big guys abusing the system. They can let executives "retire" and start small companies to get spectrum that they will either sit on or lease back to their previous employer.

They need to include a use it or loose it clause without loopholes.

robbyglack
@comcast.net

robbyglack

Anon

should of done this earlier

too bad this is happening after metroPCS and leap got bought up. this could have been there chance to grow into nationwide competitors. t-mobile and sprint are big enough that they are likely to look just like at&t and verizon if they grow more. a bigger leap or metro would have been disruptive in a whole different way, and in a way that rural carriers would never be.

more than anything else i would like to see a new carrier emerge as a fifth option in the biggest cities where they can really make an impact.
xthepeoplesx
join:2013-10-21

1 edit

xthepeoplesx

Member

What does it matter?

What does it matter? They will just allow the larger carriers to buy out the smaller carriers. So AT&T and Verizon will get the spectrum anyways.

EDIT: I honestly dont think verizon and att would be upset about this. They will in the end just get a better price for the spectrum.

robbyglack
@comcastbusiness.net

robbyglack

Anon

Re: What does it matter?

said by xthepeoplesx:

What does it matter? They will just allow the larger carriers to buy out the smaller carriers. So AT&T and Verizon will get the spectrum anyways.

EDIT: I honestly dont think verizon and att would be upset about this. They will in the end just get a better price for the spectrum.

i great condition to put in the auction would be that any buyer has to agree to remain independent for 10 - 20 years. no selling or merging.
WhatNow
Premium Member
join:2009-05-06
Charlotte, NC

WhatNow

Premium Member

Re: What does it matter?

What about bankruptcy? Should the spectrum be returned to the FCC?

robbyglack
@comcastbusiness.net

robbyglack

Anon

Re: What does it matter?

said by WhatNow:

What about bankruptcy? Should the spectrum be returned to the FCC?

sure. or sold to someone else who would have qualified originally, not one of the bigger guys.
xthepeoplesx
join:2013-10-21

xthepeoplesx

Member

Re: What does it matter?

I like how you think robbyglack!

Probitas
@teksavvy.com

Probitas

Anon

I wish people would just call PAC what it is in fact.

A bribe. A political donation from a corporation. Money for access.
BiggA
Premium Member
join:2005-11-23
Central CT

BiggA

Premium Member

Ridiculous

There is way too much spectrum out there already for wireless providers. They shouldn't even need half of what they have today to provide good wireless connectivity.