Republicans To FCC’s Wheeler: Don't Limit Auction Bidders

Every Republican member of the House Communications Subcommittee has asked Federal Communications Commission Chairman Tom Wheeler to rethink his plans to put some limits on the broadcast incentive auctions.

Chairman Wheeler has circulated a draft item that, under certain circumstances, would set aside some low-band spectrum (30 MHz) for companies that don't have as much as, say, Verizon or AT&T. It would also change its local-market spectrum screen so that low-band spectrum holdings would also trigger deeper FCC scrutiny of deals involving spectrum concentration.

In a letter to the FCC, the House members called that an attempt to "manipulate the market." They said that "artificial set-asides" and other restrictions "alter the playing field and distort the outcome."

The legislators predict that the FCC will only be clearing about 60 MHz of broadcast spectrum. That means half of the spectrum could be set aside.

The Republicans say that sounds like a cartel controlling prices by artificially controlling supply. "We urge the Commission to reconsider any plans that would further cloud an already complex auction and threaten the outcome for providers, consumers and the public safety community."