White House backs spectrum caps
Tom Power, the Deputy Chief Technology Officer for Telecommunications in the White House Office of Science and Technology Policy, urged the Federal Communications Commission to consider limiting the ability of Verizon and AT&T to bid in an upcoming auction of airwave licenses.
Speaking at an event on Capitol Hill, Power dismissed that there was ever a question about where the Obama Administration stood on the issue. He noted that the Justice Department's Antitrust Division submitted a letter to the FCC arguing that caps may be necessary to preserve competition in the wireless industry. Verizon, AT&T and Republican lawmakers argue that the FCC should hold an unrestricted auction that allows all carriers to fully participate. They argue that caps or limits on the largest carriers would suppress government revenue and unfairly favor the smaller carriers. But citing DOJ's analysis, Power warned that the largest carriers may be willing to pay a premium for spectrum -- the wireless frequencies that carry cellphone signals -- in order to block their competitors and suppress competition. Weaker competition would lead to higher prices for consumers, he said.
(Nov 21)