T-Mobile’s proposed “dynamic market rule” for limiting bidding...

Joan Marsh explained the carrier’s objection in a blog post (http://bit.ly/1d7U2ni). “The purported advantage of low band spectrum -- that it allows more coverage and better building penetration with fewer cell sites -- has been overtaken by marketplace realities under which capacity not coverage drives network deployment,” Marsh said. “Carriers deploying low band and high band spectrum alike must squeeze as many cell sites as they can into their networks to meet exploding demand for data services.” Marsh also argued that “to the extent this is less the case in rural areas, those areas are not spectrum-constrained and the lower cost of building out low band spectrum in such areas is offset by the higher cost of the spectrum itself.” T-Mobile fired back. “Without adequate competitive safeguards, there is nothing to stop the largest two carriers from walking away with all the 600 MHz low-band spectrum,” said Vice President Kathleen Ham, in an email. “Such an outcome would be bad for consumers and bad for competition in the wireless broadband marketplace. The two dominant carriers already control nearly 80 percent of low-band spectrum. Reasonable spectrum concentration limits at auction, combined with sound auction-design features such as the Dynamic Market Rule, will promote competition, encourage innovation and increase consumer choice, without harming auction revenue.”