The Department of Justice, Antitrust Division, has asked the Federal Communications Commission to boost the ability of small wireless providers to compete in an upcoming auction of valuable low-frequency spectrum that is valuable because of its ability to penetrate obstacles. The Division argued that without protection, Verizon and AT&T could “foreclos[e] their rivals from access.”
In a letter to the FCC, AT&T objected, categorizing the DOJ’s input as “a naked plea for regulatory favoritism.” Providing the sort of assistance requested to firms as large as Spring and T-Mobile, AT&T argued would violate the law and threaten to undermine the auction process. The company urged the Commission to “conduct an open and competitive auction that awards spectrum to the highest bidder.”
The spectrum auctions, which are likely to begin in 2014, are intended to transfer underutilized television spectrum to wireless Internet service as well as to raise money to reduce the budget deficit and fund a nationwide emergency network for first responders.