FCC Should State Its Goals in Opposing Restrictions on Auction Authority, AT&T Says
The FCC misunderstood AT&T’s objections to remarks last week by Chairman Julius Genachowski over how much authority the agency should have to set the rules for incentive spectrum auctions, Senior Vice President Robert Quinn said in a blog. Quinn said AT&T’s primary concern is that the company not be excluded from bidding in upcoming auctions because of its large size relative to other carriers.
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Quinn responded to comments by Wireless Bureau Chief Rick Kaplan, who responded to AT&T Friday (CD Jan 17 p4). “The FCC maintains that its ‘goal and intention is that every carrier -- big, medium, or small -- that needs additional spectrum should have a meaningful chance to bid for it,'” Quinn wrote (http://xrl.us/bmo2jj). But that “concept” is in keeping with language in legislation opposed by Genachowski, the blog said. The commission has done “some creative tinkering with auctions in the past, with dubious results,” Quinn said, citing rules devised for the C and D blocks in the 700 MHz auction.
"From AT&T’s perspective, however, we fear that this time around, some of its tinkering may be aimed at specific auction participants, like us,” Quinn said. He cited conditions imposed two years ago on the license transfer between SkyTerra and Harbinger, now LightSquared, “where, a mysterious condition appeared at the last minute that imposed conditions if LightSquared were to engage in a commercial relationship with AT&T or Verizon,” the nation’s two largest carriers. “Yes, we are concerned that the FCC might actually design auction rules that radically restrict AT&T’s ability to participate in these auctions, which is why we care about this language,” Quinn said. If the FCC wants “specific authority to actually block qualified companies from purchasing spectrum or limiting the spectrum they can purchase in these auctions, then it should be transparent and upfront with Congress about its intentions -- as well as its reasoning for seeking such authority,” he said.
The FCC did not respond by our deadline.
"It is hardly surprising that AT&T would oppose policies that favor increased competition in the wireless space,” Media Access Project Senior Vice President Andrew Schwartzman said. “Experience demonstrates that incumbents are in a position to dominate auctions for new spectrum. They are willing to outbid new entrants because the higher price forecloses new competition. Similarly, incumbents oppose creation of new bands for unlicensed use because they cannot control who would use such spectrum."
Public Knowledge Legal Director Harold Feld said it’s “truly unfortunate” that the FCC “is under attack,” from both AT&T and House Commerce Committee Chairman Fred Upton, R-Mich. “The legislation before Congress now would strip the Commission of much of its discretion, and as a result, much of its ability to respond to market conditions,” Feld said. “In an endeavor as complex as a spectrum auction, this is a recipe for disaster."
"This is obviously an attempt to convert what has been a policy debate between the Senate and the House into a partisan issue,” Feld said in response to the Tuesday blog. “It is not terribly surprising that, given its failure to corner the market on spectrum by buying T-Mobile, AT&T should once again trot out its tired talking points as it tries to rig any future spectrum allocations in its favor.”