By: Kathleen Ham, Vice President of Federal Regulatory Affairs, T-Mobile USA
I blogged on the matter of spectrum auction authority a few weeks ago, but I think it’s important to re-emphasize our position at T-Mobile. Our concern is the auction eligibility language now being considered by Congress will give a significant advantage to the largest companies with the deepest pockets, who will buy any and all available spectrum to the exclusion of competition.
What T-Mobile and other smaller carriers want is a fair auction process that enables all to get the spectrum they need to effectively compete in the marketplace. The FCC crafted its competitive bidding rules that way in the early PCS auctions, ensuring that not all the spectrum auctioned could be horded by the dominant cellular carriers of the day. That is not picking winners and losers – it’s only ensuring there are MORE winners than losers.
We all want free markets. But the reality is that spectrum supply is not a normal free market since the US Government uniquely controls this fundamental input to our business. It is incumbent upon the government then to ensure that when and if it makes this resource available it does so fairly, ensuring all who want to compete have that opportunity.
This is why former Congressman Dennis Hastert, a Republican, who later became Speaker of the House of Representatives, introduced in 1993 the very provision powerful interests are seeking to have modified today. Hastert said, "we need to make sure that all qualified bidders will have the opportunity to participate in this new process ... This language will ensure that the FCC promotes competition ... thereby giving all potential bidders the opportunity to procure spectrum at auctions."
Speaker Hastert was right. We all need our fair share of spectrum in order to compete. For nearly 20 years Congress has empowered the FCC to conduct fair and competitive spectrum auctions. They should not take the bait today and change the status quo in favor of the largest carriers.
