FCC chief defends plan to limit large carriers in auction

Federal Communications Commission Chairman Tom Wheeler is defending plans to limit large wireless carriers when the federal government auctions off airwaves worth billions of dollars in 2015.

In a letter to House members, FCC Chairman Wheeler said the agency is designing the highly anticipated auction with "equity and openness in mind" to "deliver to consumers, regardless of their zip code, greater wireless competition, improved services and lower costs." Chairman Wheeler's letter is in response to a letter from 78 House Democrats who asked him to allow unlimited competition among wireless carriers in the 2015 auction. That auction will involve buying airwaves from broadcasters, repackaging those airwaves and selling them to spectrum-hungry wireless companies.

Revenue from the 2015 auction, as well as from two airwave auctions in 2014, will go toward funding a nationwide network for first-responders.

"My proposal would reserve a modest amount of this low-band spectrum in each market for providers that, as a result of the historical accident of previous spectrum assignments, lack such low-band capacity," Chairman Wheeler wrote, adding that the proposal will "contain safeguards to ensure that all bidders for reserved spectrum licenses bear a fair share of the cost of making incentive payments to broadcasters."

Chairman Wheeler pointed to wireless companies' need for low-frequency spectrum, especially in rural areas. "Today, most of this low-band spectrum is in the hands of just two providers," he said. "The Incentive Auction offers the opportunity, possibly the last for years to come, to make low-band spectrum available to any mobile wireless provider, in any market, that is willing and able to compete at auction."

Chairman Wheeler said he agreed with lawmakers looking to incentivize broadcasters and wireless companies to participate.