Even “the mildest” restrictions limiting AT&T’s and Verizon...

issue on behalf of AT&T. “More severe restrictions, which might result in de facto exclusion of AT&T and Verizon from the auction, would magnify this loss, implying auction revenue reductions of between $13.4 billion and $26.8 billion, depending on the quantity of spectrum ultimately sold,” the paper said. “Our analysis ignores the fact that lower auction revenue may result in a smaller quantity of spectrum cleared due to the structure of the 600 MHz auction; this would further increase the adverse effect on the Federal budget.” Other parties that urge spectrum aggregation limits for the auction argue that fewer competitors would be offset by more bidding by smaller carriers, the paper said. “We estimate that the number of bidders outside the ‘big four’ (AT&T, Verizon, Sprint, and T-Mobile) would need to increase by roughly 150 percent to offset the adverse effects arising from even the least aggressive restrictions on auction participation under consideration.” The paper was authored by Philip Haile of Yale and Maya Meidan and Jonathan Orszag of Compass Lexecon. “Prompt, successful completion of the 600 MHz auctions is essential to the continued health and growth of the U.S. broadband wireless marketplace,” AT&T said in a letter submitting the study to the FCC. “The self-interested proposals for auction participation restrictions plainly threaten that outcome, and they should be rejected.” “It is quite appropriate that this study came out today -- it is nothing more than a distracting Halloween trick concocted by AT&T,” said Steve Berry, president of the Competitive Carriers Association. “AT&T hopes these self-serving findings will allow them to continue to aggregate spectrum in and out of the auction room and eliminate competition. No one has ever suggested that AT&T and Verizon should be excluded from participating in the 600 MHz auction. In fact, we want them to participate, so they can participate in the wireless ecosystem. I'm also not surprised that AT&T does not contemplate the entrance of new competitors who may be discouraged from participating absent any competitive safeguards.” T-Mobile also fired back. “In its latest submission in the 600 MHz incentive auction docket, AT&T contends that any attempt to put consumer benefit above AT&T’s balance sheet will lead to disaster,” said T-Mobile Vice President Kathleen Ham. “AT&T is wrong again. Encouraging participation from more bidders will increase auction revenues. But without reasonable spectrum-aggregation limits on the two dominant incumbents, both consumers and revenues will suffer.”