Competition and choice in wireless broadband

[Commentary] Unfortunately, the wireless industry today is anything but competitive. Two carriers, AT&T and Verizon, have a de facto duopoly with two-thirds of the market. With it, they have the financial and political power to drive the other carriers completely out of the market. If this happens, customers -- individuals and businesses alike -- would face sharply higher prices, reduced service and less innovation. To keep the wireless broadband playing field from becoming hopelessly tilted toward the “Big Two,” Congress authorized the Federal Communications Commission to promote competition by preventing the excessive concentration of spectrum in an upcoming auction of low-band spectrum licenses.

In keeping with congressional direction, the FCC adopted rules that ensure any bidder that holds less than one-third of the available low-band spectrum can buy spectrum in the auction. Achieving the goal of competitive wireless broadband will depend upon how the FCC uses its regulatory power to structure the upcoming auction of low-band wireless spectrum. We need to prevent the loss of innovation, investment and deployment that even more market power would create. That’s why the FCC, under the able leadership of Chairman Tom Wheeler, should increase the spectrum reserve to at least 40 MHz. If the FCC follows suit and increases the spectrum reserve for competitors to at least 40 MHz, we’ll have better service, faster connection times, lower prices, more options and new innovation. Isn’t that what we all want as consumers? And isn’t that what our economy needs?

[Waxman currently serves as Chairman at Waxman Strategies, a public affairs and strategic communications firm]