Size Matters

[Commentary] One of the most important components in designing a successful spectrum auction is establishing the right license sizes -- both the amount of spectrum devoted to each license and the geographic area it covers.

As history shows, providing enough small blocks and a mix of geographic areas will help ensure the auction does not become a playing field for only Verizon and AT&T. 50 megahertz of prime spectrum nationwide is at stake as the Federal Communications Commission finalizes its AWS-3 auction service rules, and not surprisingly, Verizon and AT&T are advocating for big blocks covering big geographic areas.

However, an auction with too many large blocks is a configuration that has the real potential to dissuade competitive carriers from participating in the auction. By contrast, smaller spectrum blocks with a mix of large and small geographic areas will provide the greatest opportunity for a wide variety of bidders to participate and obtain licenses that match their licensing needs.