Time To End Debate on Incentive Auction Spectrum Reserve, ITIF Analyst Says
The FCC should ignore further arguments in favor of an expanded amount of reserve spectrum for the TV incentive auction and let the auction proceed, Doug Brake, telecom policy analyst at the Information Technology and Innovation Foundation, said in a…
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Monday blog post. “We already had this debate with the initial mobile spectrum holdings report and order a year ago,” Brake wrote. “There was an extensive back and forth on this very issue, the FCC already decided on a compromise. The FCC recognized the importance of 600 MHz spectrum to the competitive landscape, but also recognized that the primary advantage of auctioning spectrum is to discover the firm who values a particular license most.” The issue is before the FCC as it takes up refinements to the auction rules at its Thursday meeting (see 1507060068). Despite the claims of their competitors, Verizon and AT&T are the most spectrum-restrained carriers, Brake wrote. “These companies are not hoarding spectrum to foreclose competitors, but aggressively deploying,” he said. “Furthermore, this is an industry in the midst of a price war with margins falling. In fact, T-Mobile appears to be doing quite well by focusing on capacity in urban areas. Issues around rural coverage in this debate are largely red herrings -- the need for more spectrum, and, frankly, the money, is still in cities.”