Justice Dept. warns FCC that auction plans may hurt competition

Jun. 25, 2015 7:04 PM ETAT&T Inc. (T) StockT, VZ, TMUS, SBy: Jason Aycock, SA News Editor13 Comments
  • While FCC Chairman Tom Wheeler signaled today that the agency wouldn't bow to demands for greater spectrum set-asides for competitors to AT&T (NYSE:T) and Verizon (NYSE:VZ), the Justice Dept. sent a letter urging the FCC to think about moves to spread the spectrum, including a greater set-aside.
  • William Baer with the DOJ's antitrust division asked the FCC to consider “the well-established competition principle that those with market power may be willing to pay the most to reinforce a leading position.”
  • In a low-band "broadcast incentive" auction coming next year, the FCC has proposed setting aside 30 MHz per market for competitors other than the two telecom leaders, like Sprint (NYSE:S) and T-Mobile (NASDAQ:TMUS). T-Mobile has been vocal about pushing for a 40 MHz reserve and is hopeful that Baer's letter means it still may happen: “There would be no point in writing the letter if they didn’t want the FCC to take another look," says T-Mobile's Andy Levin.
  • More FCC auction coverage

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