Excluding AT&T and Verizon from spectrum auctions would result in...
Excluding AT&T and Verizon from spectrum auctions would result in less revenue for the U.S. Treasury and higher prices for consumers, said a paper released Wednesday by the Georgetown Center for Business and Public Policy. The 700 MHz auction showed…
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that “placing conditions on spectrum reduces the value of that spectrum,” said Anna-Maria Kovacs of the center. “The key lesson of Auction 73 is that a neutral auction -- one that is open to all bidders and free of conditions -- benefits consumers and competition, as well as the Treasury.” AT&T and Verizon are “spectrum-constrained” and spending significantly to keep up with customer demand, Kovacs said. “Rationing the spectrum available to the largest carriers by excluding them from the proposed incentive auction is likely to degrade their service, raise their cost, and force them to raise their prices.” Competitors might buy spectrum “at deep discounts” without the top two carriers bidding, but “there is no assurance that they will pass that saving on to consumers,” she said. There are no “obvious new entrants on the horizon” showing interest in buying spectrum to create a new competitive network, Kovacs added.