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Sprint/T-Mobile Plan To Buy Spectrum Together May Be Blocked By FCC

Posted by samzenpus on from the not-so-fast dept.

An anonymous reader writes with a FCC proposal that is bad news for Sprint and T-Mobile. A proposal from FCC Chairman Tom Wheeler would block an attempt by Sprint and T-Mobile US to buy spectrum together in the incentive auction that will transfer airwaves from broadcast TV stations to cellular carriers next year. Announced on Friday, Wheeler's proposal seeks to help the smallest wireless companies develop business partnerships with larger ones. But it would not allow partnerships between the biggest carriers, since more than 95 percent of US customers are served by either AT&T, Sprint, T-Mobile, or Verizon Wireless. "Our goal is to promote the participation of as many parties as possible in the auction," FCC Wireless Telecommunications Bureau Chief Roger Sherman wrote Friday. "If two of the largest companies are able to bid as one combined entity in the auction, their combined resources may have the effect of suppressing meaningful competition. Therefore, the item tentatively concludes that joint bidding arrangements between nationwide providers should not be allowed."

2 of 28 comments (clear)

  1. Should not be blanket banned by technosaurus · · Score: 4, Interesting

    It should ban any entities with another spectrum in that location in round 1.  If no bidders then round 2 allow smaller entities with other spectrums in other areas.  ... if still no takers round 3 it should be open to all entities.

    This would increase competition in rural areas where there may be no existing infrastructure, but not eliminate the possibility of allowing existing entities to provide service to those areas if no _local_ company wants it.

  2. Re:Common sense by NoKaOi · · Score: 5, Insightful

    A good common sense opinion from Mr. Wheeler and the FCC. So where's that common sense when it comes to net neutrality?

    Wrong companies. You'll notice his pet companies Verizon, Comcast and Time Werner aren't helped by this. It's more complicated than pushing things in favor of big business, it's pushing things in favor of the biggest businesses. Sprint and T-mobile combined have less market share than either Verizon or AT&T individually, and I'm sure Verizon and AT&T want to keep it that way.

    So, what will happen is a smaller company or combined small companies will buy the spectrum, and then get bought out by Verizon or AT&T.