Spectrum auctions: Competitive opportunity or corporate welfare?

Coverage Type: 

[Commentary] Two recent articles discuss the state of competition in the wireless industry. The first discussed the better-than-expected revenue gains of T-Mobile USA that were based on the firm’s increase in contract subscribers -- the Holy Grail for corporate growth. The second article examines the upcoming spectrum auction and its potential impact on the mobile industry. Most interestingly, it speaks extensively of the need to use the upcoming spectrum auctions to bolster the market position of both T-Mobile and Sprint and protect these companies from their competitors (Verizon and AT&T). The juxtaposition of an article marking the competitive growth of T-Mobile against an article that sees a need to dole out government corporate welfare to T-Mobile seems rather odd, to say the least.


Spectrum auctions: Competitive opportunity or corporate welfare?