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2013/04/15

DoJ: T-Mobile USA and Sprint Should Qualify for More Lower-Frequency Spectrum - Communications Solutions

 

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April 15, 2013

DoJ: T-Mobile USA and Sprint Should Qualify for More Lower-Frequency Spectrum

Because a national mobile service provider’s holding of low-frequency spectrum may determine its ability to compete in offering a broad service area, including its ability to provide coverage efficiently in rural areas, the U.S. Dept. of Justice now argues that U.S. spectrum policy should allow firms such as Sprint and T-Mobile USA to acquire this spectrum.

That obviously would require bidding rules that give such firms preference, compared to AT&T and Verizon Wireless.

That emphasis on lower frequency band spectrum adds a new “quality of spectrum” dimension to policy making in the mobile spectrum area.

The Department of Justice's principal concern is that acquisitions of spectrum, whether at auction or through subsequent transactions, should not be used to create or enhance market power.

The objective, when it comes to spectrum allocation, is to provide the ultimate benefit to consumers, DoJ argues, and rightly so.

At the same time, DoJ is concerned that dominant service providers could acquire spectrum for the purpose of denying its use of other potential competitors, or for the purpose of raising competitor costs. “Spectrum warehousing,” where a carrier acquires spectrum only to keep it out of use, is one such potential example of behavior DoJ seeks to prevent...Read More >>>



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