AT&T Backs Down From Threat of Boycotting TV Airwaves Auction

Federal Communications Commission Chairman Tom Wheeler circulated a much-leaked proposal to restrict how many licenses the country’s two largest wireless companies can win in an auction of TV airwaves in 2015.

In a blog post, he said regulators need to ensure that the nation’s largest carriers, AT&T and Verizon Wireless, don’t scoop up all of the TV airwaves. The licenses to be auctioned off are coveted by wireless companies because they allow signals to penetrate buildings and travel long distances, which makes them cheaper to use. The rules are designed to prevent “one or two bidders” from sweeping the auction, Chairman Wheeler wrote. They should make it easier for Sprint, T-Mobile and other smaller carriers to scoop up prime airwaves licenses for their LTE networks.

A senior FCC official told reporters they’re trying to do a balancing act between wanting to raise money while ensuring that smaller carriers have a chance to win licenses. This is a reasonable approach, the official said. It’s not clear if the wireless carriers will agree.

When the rules were leaked, AT&T complained about the set-aside for smaller companies and threatened to boycott the auction. Now, AT&T has backed down from the threat, saying, “our desire to participate in this auction and our hope for a successful auction is unchanged,” in a letter disclosing a meeting AT&T officials had with Chairman Wheeler’s aides.