American telecom operators Verizon Communications and AT&T will not be able to buy substantial chunk of spectrum in next year’s auction of highly valuable wireless airwaves.
Media reports say U.S. telecom regulators on Thursday voted to limit how much spectrum Verizon Communications and AT&T will be able to buy in next year’s auction of highly valuable wireless airwaves.
This indicates that FCC has started listening to smaller national telecom carriers such as Sprint (owned by Softbank) and T-Mobile US which had urged the American telecom regular to ensure their two biggest rivals do not dominate the auction.
FCC Chairman Tom Wheeler has agreed that Verizon and AT&T already control almost two-thirds of the coveted low-frequency airwaves.
The FCC will conduct a major auction of low-frequency spectrum for mid-2015. This will be a big chance in years for wireless carriers to buy the airwaves considered the beach-front property of radio spectrum for their reach and strength.
The Federal Communications Commission in a 3-2 vote approved the plan that would reserve part of the spectrum in each market for wireless carriers that do not already have substantial blocks of low-frequency airwaves there, largely restricting Verizon and AT&T participation, said a Reuters report today.
“What this rule does is prevent those with current low-band spectrum from monopolizing the market in the auction by assuring that some spectrum will be available for those with insufficient amounts of spectrum to serve rural areas and penetrate buildings,” said FCC Chairman Tom Wheeler
The FCC also voted 3-2 to expand the so-called spectrum screen, a calculation of what airwaves are usable for wireless, to include more of the airwaves currently controlled by Sprint and Dish Network, among other things.
Verizon responds
As part of this two-sided auction, broadcasters will have an opportunity to relinquish spectrum, which will then be put out for bid.
Craig Silliman, Verizon senior vice president, public policy, said: “We are pleased that today’s order aligns the FCC’s spectrum screen with current marketplace realities. For far too long, the screen has been woefully under-inclusive. By counting all providers’ broadband spectrum equally, the FCC’s decision will help ensure that all carriers have the opportunity to acquire the spectrum necessary to serve their customers.”
“We look forward to additional spectrum coming to market to meet consumers’ ever expanding demand. The FCC’s recent actions to adopt even-handed rules for the upcoming AWS-3 auction together with today’s progress on the incentive auction are important steps forward in meeting wireless customers’ needs,” Silliman added.
TelecomLead News Team
