Cell carriers clashing over auction rules

The Federal Communications Commission (FCC) plans to auction off valuable low-frequency airwaves while balancing its congressionally mandated goal of raising revenue for the government with the competing business interests of wireless companies.

Industry giants AT&T and Verizon say the FCC shouldn’t limit participation in the auction if it hopes to raise the billions of dollars needed to fund a nationwide network for first responders. But small companies, including T-Mobile and regional carriers, want the FCC to limit the bidding powers of their rivals to keep the cost of the airwaves low. The small companies say they need the low-frequency airwaves, which travel farther and through walls, to keep the wireless market competitive. FCC Chairman Tom Wheeler said the agency is prepared to step in to prevent monopolization of the auctions. “All who want to participate in the auction will be able to bid,” Wheeler said, adding that, “a priority of the auction should also be to fill in the blank white spaces on the coverage maps we see on TV commercials with competitors and consumer choice.” Wireless industry officials briefed by the FCC said the agency is considering some limits on AT&T and Verizon once the auction reaches a yet-to-be-determined revenue benchmark.