FCC Rules Allow One Bidder To Buy More Than Half Of Spectrum

FCC RULES ALLOW ONE BIDDER TO BUY MORE THAN HALF OF SPECTRUM
[SOURCE: DowJones; AUTHOR: Corey Boles corey.boles@dowjones.com]
A single company could bid for more than half the lucrative spectrum to be auctioned off by the Federal Communications Commission after the final rules for the sale failed to include a provision prohibiting this from occurring. There had been pressure on FCC policymakers to include such a rule to ensure that an incumbent wireless carrier such as Verizon Wireless or AT&T wouldn't be able to take the lion's share of the spectrum being sold. Potential new entrants to the market, such as Google, as well as a handful of public interest groups had been pushing the FCC to include the rule. Two sections make up 32 megahertz of the 62 megahertz of prized airwaves being sold off. They include one 22-megahertz swath with so-called open-access requirements attached -- which is actually six separate pieces that can be added together, and another 10-megahertz chunk that will be used to provide wireless broadband service to the emergency services community, with any spare capacity able to be used for commercial purposes. The remaining 30 megahertz has been broken up into several hundred licenses. They are likely to be bought by smaller or rural wireless carriers that couldn't afford to bid for the larger sections. Ultimately, the FCC decided not to include such a rule after public safety representatives voiced concern that such a rule might limit interest in the 10 megahertz of airwaves that affects them. Public safety said they feared that if large bidders were forced to choose between the 22-megahertz chunk and the 10-megahertz one, they would choose the former. The absence of a rule prohibiting a major swoop by a bidder doesn't mean such a move is likely. It would cost upward of $7.5 billion if the forecast price for the entire 62 megahertz of airwaves is correct.
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