OTI & Public Interest Groups Urge FCC to Support Competition in TV Incentive Auctions

WASHINGTON, DC — Today national consumer and other nonprofit groups in the Public Interest Spectrum Coalition (PISC) sent a letter to FCC Chairman Tom Wheeler stating that the record $45 billion AWS-3 spectrum auction may harm consumers by raising prices and undermining mobile market competition.

PISC is “concerned that the Commission and Congress may draw the wrong lessons from the recently-completed AWS-3 auction.” The letter suggests three lessons for spectrum policy:

Lesson 1: The Commission Should Move Quickly to Provide More Broadband Spectrum – Both Licensed and Unlicensed. The FCC should ensure the 600 MHz incentive auction scheduled for early 2016 is not delayed. Looking beyond that auction, there is very little additional low- and mid-band spectrum available for auction any time soon. This means the FCC’s proposed small-cell approach to licensed and unlicensed sharing of the federal 3.5 GHz band is as important as any auction. Extending dynamic spectrum sharing and more unlicensed access to other underutilized bands is the best long-term path to ubiquitous and affordable mobile broadband.

Lesson 2: Auctions Should Maximize Consumer Benefits, Not Government Revenues. The auction harms consumers twice over: Auction proceeds result in higher prices for wireless broadband consumers and less investment capital for carriers. And by further increasing the consolidation of spectrum holdings by AT&T and Verizon, the AWS-3 auction has reduced mobile market competition as well.

Lesson 3: Competitive Safeguards in Auctions Are Essential to Protect Consumer Choice. The 600 MHz incentive auction may be the FCC’s final opportunity to prevent Verizon and AT&T from monopolizing the low-band spectrum needed to compete in a broadband data world. Because AT&T and Verizon already control three-quarters of the nation’s uniquely valuable low-band spectrum, only a spectrum reserve of 40 megahertz or more for smaller carriers can ensure that more than two wireless broadband providers will continue to offer consumers an alternative for mobile voice and data services.

The following statement can be attributed to Michael Calabrese, Director, New America’s Wireless Future Project:

“Selling public airwaves for a record $45 billion is a tragedy for consumers, not a victory, if it results in AT&T and Verizon further dominating the spectrum needed to ensure mobile broadband competition. The FCC needs to ensure that next year’s TV band incentive auction puts vital low-band spectrum into the hands of the non-dominant carriers that do not hold enough now to compete effectively.”

The Public Interest Letter filed today can be found here. 

Expert Contact
Michael Calabrese
Director, Wireless Future Project
New America's Open Technology Institute
202-596-3423
calabrese@newamerica.org

Media Contact
Jenny Mallamo
Media Relations Associate, New America
(202) 596-3368
mallamo@newamerica.org

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For more information or to schedule an interview, please contact Jenny Mallamo, Media Relations Associate, at (202) 596-3368 or mallamo@newamerica.org.

About New America

New America is a nonprofit, nonpartisan public policy institute that invests in new thinkers and new ideas to address the next generation of challenges facing the United States. To learn more, please visit us online at www.newamerica.org or follow us on Twitter @NewAmerica.

About Wireless Future Project (WiFu)

New America’s Wireless Future Project (WiFu) is part of Open Technology Institute (OTI). It advocates policy reforms to enhance mobile market competition and to expand public access to unlicensed spectrum and Wi-Fi. OTI is a global pioneer in developing innovative communications technologies and policies to enable communities to fully participate in the global economy, and freely shape their democracies. To learn more, please visit us online at http://oti.newamerica.org and on Twitter @OTI.