Wireless CEOs to Congress: Don't Change the FCC's Auction Authority
Today Sprint CEO Dan Hesse joined the CEOs of Atlantic Tele-Network, Bluegrass Cellular, C Spire Wireless, Cricket Communications, NorthwestCell, T-Mobile USA, and RCA - The Competitive Carriers Association in sending the following letter to the members of the Congressional Conference Committee considering the JOBS Act, H.R. 3630.
Dear Senators and Representatives,
We write to call your attention to language currently contained in Title IV of H.R. 3630 (the "JOBS" Act) that could cause the U.S. wireless market to revert back to the innovation and competition starved market that existed before Congress granted the FCC spectrum auction authority in 1993. The JOBS Act contains provisions that could provide significant benefits to smaller carriers and consumers by putting additional, high-quality spectrum into the marketplace. However, Section 4105 of the Bill, as currently worded, would undercut those benefits by prohibiting the Federal Communications Commission from considering existing spectrum holdings in determining a carrier’s participation in future spectrum auctions. The proposed provision would substantially limit the FCC’s ability to promote competition and a competitive wireless marketplace for consumers throughout America. It would facilitate spectrum warehousing, inefficient use of scarce spectrum resources, and reduce spectrum auction revenues to the U.S. Treasury. Accordingly, we ask Congress to support fair spectrum auctions that promote competition in the mobile broadband marketplace by eliminating Section 4105.
Congress first granted the FCC authority to design and conduct spectrum auctions in 1993; since then, the agency has conducted more than 80 auctions raising tens of billions of dollars for the U.S. Treasury and issuing thousands of new spectrum licenses. The FCC has used its auction design authority cautiously and wisely. It has adopted auction eligibility restrictions only when needed to promote competition and avoid excessive spectrum concentration in the hands of a few carriers. Stripping the FCC of its auction design discretion would disserve the public interest by permitting unchecked participation by the two largest, best-funded wireless carriers in future spectrum auctions. That would discourage smaller competitors from participating in future auctions thereby reducing auction revenues and limiting wireless competition and innovation.
In the early 1990s, Congress and the FCC were faced with a wireless duopoly. Congress responded by giving the FCC the auction eligibility flexibility it implemented to auction the spectrum which the undersigned wireless carriers used to compete in the marketplace. Congress’ challenge today is to authorize the FCC to conduct incentive auctions to bring additional spectrum to market while preserving the FCC’s ability to manage auction eligibility and structure to promote the benefits of vibrant wireless competition for consumers and the economy.
We urge you to safeguard America’s mobile broadband future by ensuring that FCC auction authority is renewed by taking the concrete steps outlined above.
