Unless the FCC approves rules requiring interoperability for devices across...
Unless the FCC approves rules requiring interoperability for devices across all 700 MHz spectrum bands, it will encourage the Balkanization of 700 MHz spectrum, said a paper by the Rural Cellular Association submitted to the agency. “AT&T devices may only…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
work on the lower B and C Blocks, which are predominantly held by AT&T, and Verizon Wireless devices may only work on the Verizon Wireless’ upper C Block,” said the paper, written by University of Maryland Economics Professor Peter Cramton. “Such restrictive practices used as a competitive blocking tactic would undermine competition, reduce consumer choice, slow the build out of broadband in rural areas, prevent roaming in the 700 MHz band, reduce the value of the 700 MHz A Block spectrum and the spectrum not held by AT&T and Verizon Wireless, and harm future spectrum auctions.” Failure to approve rules will “further cement the Big Two’s dominant position,” the paper said. “Excessive concentration will undermine competition and innovation, slow the deployment of services for rural and public safety customers, encourage warehousing of spectrum, and reduce revenues in future auctions. The American consumer and public safety user will not receive the economic benefits of global production of innovative devices for 4G on 700 MHz.” Verizon Wireless and AT&T “have a near-duopoly and allowing them to adopt restrictive device practices would not only undermine competition, but it would also reduce consumer choice and slow the build out of broadband in rural America,” said RCA President Steve Berry. “If the FCC is serious about bringing broadband to unserved and underserved areas, it must put an end to handset exclusivity and mandate interoperability."