Facts about low band spectrum holdings

In a recent op-ed, the Competitive Carriers Association (CCA) again called for auction limits to “prevent the two dominant wireless carriers from blocking competitors’ access to low-frequency spectrum.” The problem, according to CCA, is that AT&T and Verizon control a significant portfolio of low band spectrum. CCA specifically identifies three member companies -- Bluegrass Cellular, Cellcom, Cellular One -- that “are anxious to further expand in rural America, and they need low-frequency spectrum to do so.” As with so many arguments in the high band/low band spectrum debate, these arguments are made without much reliance on facts. So, let’s look at some relevant facts, starting with the three member companies CCA identifies in support of their argument:

• Bluegrass Cellular – Bluegrass Cellular won both 700 MHz B and C block licenses at auction. All told, it holds 15 700 MHz licenses. Bluegrass is also leasing some upper 700 MHz C block spectrum from Verizon as part of the “LTE in Rural America” program (which is a funny way to “block” competitive access to spectrum). Finally, Bluegrass Cellular, through affiliated partnerships, holds a number of 850 MHz cellular licenses. In short, Bluegrass has a robust portfolio of low band spectrum. Indeed, given its 700 and 850 MHz portfolio, it is likely that, if T-Mobile’s proposed auction restrictions were adopted, Bluegrass’ auction participation would be restricted in some markets.
• Cellcom – we assume this refers to New Cell, Inc., which does business as Cellcom, who is an investor in Nsighttel Wireless, LLC and Nsight Spectrum, LLC. Nsight won two 700 MHz licenses in Auction No. 73 and acquired an additional 700 MHz license on the secondary market. Like Bluegrass Cellular, Cellcom also leases 700 MHz spectrum as a participant in the LTE in Rural America program. Nsight Spectrum also holds two cellular licenses and has two affiliated partnerships (Wisconsin RSA No. 4 Limited Partnership and Wisconsin RSA-10 Limited Partnership) that hold cellular licenses. Like Bluegrass, this company already has access to low band spectrum in both 850 and 700 MHz.
• Cellular One – we assume this refers to MTPCS, a CCA board member that does business as “Cellular One.” MTPCS is owned by Alta Communications, which also has controlling interests in Central Louisiana License Co. and TX-10 Licensee Co., companies that hold five 850 MHz cellular licenses between them. MTPCS is also a part of Verizon’s LTE in Rural America program, and it holds a long term lease of 700 MHz C block spectrum.

In short, the very companies CCA argues lack, and therefore need, low band holdings in fact have low band holdings and have readily acquired those licenses at auction, on the secondary market and through lease arrangements with other licensees. There is simply no evidence that they have been blocked in any way from gaining access to low-frequency spectrum.