@jbtaylor on tech

In my last post, I pointed out how current law governing spectrum auctions has been tremendously successful -- it's generated more than $60 billion in revenue for the U.S. Treasury since 1994.

The current law has also led to increased competition in the wireless industry. Most people forget, but prior to passage of the existing law, consumers had only two wireless carriers to chose from no matter what city they lived in. One of those carriers was by law, owned by the local landline company; the second carrier was a new entrant.

Once the first auction under the 1994 law was completed, competition arrived and prices for consumers dropped. According to a Yankee Group study, prices dropped approximately 25 percent in the first three years of the 1994 law.

That's what competition does for consumers -- it lowers prices.

One look at the spectrum holdings of Verizon and AT&T, however, and you quickly understand that why the Twin Bells want to change the law. They already have the lion's share of the country's most valuable spectrum and they want even more -- competition be damned. They're fearful that the FCC will run future auctions with a mind for what's good for consumers and competition, not what's good for Verizon and AT&T.

Just how much spectrum do the Twin Bells hold?

I'll tackle that in my next post.