Sprint/T-Mobile merger may prompt US FCC to rewrite auction rules

A planned merger of Sprint and T-Mobile US could prompt US regulators to rewrite rules they are now weighing for a 2015 auction of airwaves, according to sources familiar with the proposed plan.

Federal Communications Commission Chairman Tom Wheeler has proposed restrictions on how much the biggest carriers, Verizon Communications and AT&T, could bid in the major auction of television spectrum scheduled for mid-2015. However, as in many other proceedings, the FCC's rules would be based on the "current market structure." Any changes or proposed changes in that structure that could undermine the goals of the auction would prompt a review and potential edits, said sources briefed on the proposed rules. That means if SoftBank Corp, Sprint's parent company, moves ahead with its goal of merging the No. 3 wireless carrier with No. 4 provider T-Mobile, the FCC could eliminate the reserve set off for smaller competitors, sources said.