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Competitors of the top two wireless carriers protested the House...

Competitors of the top two wireless carriers protested the House spectrum bill for limiting the FCC’s ability to make rules on auction eligibility. Sprint Nextel, T-Mobile, the Rural Cellular Association and five others sent a letter Wednesday to conferees on…

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the House-Senate conference for the payroll tax cut extension. They urged conferees to reject Section 4105 of the House bill (HR-3630) banning the FCC from considering existing spectrum holdings in determining a carrier’s participation in auctions. “The proposed provision would substantially limit the FCC’s ability to promote competition and a competitive wireless marketplace for consumers throughout America,” the competitive carriers said. “It would facilitate spectrum warehousing, inefficient use of scarce spectrum resources, and reduce spectrum auction revenues to the U.S. Treasury.” The provision benefits only AT&T and Verizon Wireless, they said. “Stripping the FCC of its auction design discretion would disserve the public interest by permitting unchecked participation by the two largest, best-funded wireless carriers in future spectrum auctions,” they said. “That would discourage smaller competitors from participating in future auctions thereby reducing auction revenues and limiting wireless competition and innovation.” AT&T Senior Executive Vice President Jim Cicconi disagreed with his company’s rivals. “Any qualified carrier, including those on today’s letter, should have a chance to bid on any spectrum available in an auction,” he said. “This group, however, wants the FCC to stack the deck in its favor. … These companies should be prepared to compete in a fair and open auction, and should stop seeking a rigged spectrum auction that would harm consumers and cost the Treasury billions."