FCC to Review Spectrum Ownership Concentration Policy

Federal regulators are gearing up to take another look at how much of the airwaves any one company should be able to control, stepping into a heated policy debate with broad implications for the wireless industry. The Federal Communications Commission is expected to vote in September on a proposal to set new rules for sales of airwave rights by one company to another, FCC officials said.

One question likely to be raised: whether lower-frequency spectrum, which often works better for wireless uses, should be treated differently by regulators than airwaves in higher frequency bands. The proposal will be circulated by commission staff. If approved by the five-member FCC, the rules would be open to comment from the industry and others before taking effect, a process that could take months. Alternatively, the commission could continue to review such deals on a case-by-case basis. At stake in the details of the policy is the tug of war between industry giants Verizon Wireless and AT&T and smaller carriers like T-Mobile USA and Sprint Nextel. Smaller carriers and consumer groups have said AT&T and Verizon own too much of the valuable spectrum below 1 gigahertz, while AT&T in particular has criticized the FCC for being too slow and unpredictable in reviewing sales of spectrum rights between companies.