The Department of Justice filed an argument with the Federal Communications Commission (FCC), proposing antitrust measures to ensure networks such as Sprint and T-Mobile receive an opportunity to acquire low-frequency bands at an upcoming wireless spectrum auction — an auction used to determine rights to transmit signals over a certain frequency.
The Department of Justice made the decision based on the belief that competition among all carriers benefits the economy, as well as consumers.
According to the Department of Justice filing, the organization seeks to prevent any such activity that could result in a monopoly. Instead, they are working to increase competition between various companies.
The Justice Department suggests a carrier could buy up a significant portion of spectrum and circumvent antitrust policies, adding, “The more concentrated a wireless market is, the more likely a carrier will find it profitable to acquire spectrum with the aim of raising competitors’ costs.” The Justice Department proposes a cap on the available spectrum for companies, and says the results would mean equal coverage among carriers, where competition would ultimately determine success.
The Competitive Carriers Association (CCA) agreed with the Justice Department’s filing. In a press release, the organization applauded the Justice Department for its leadership in the matter, and agreed with the proposed advantages of regulating the wireless spectrum. In the release, CCA President Steven K. Berry comments, “AT&T and Verizon control almost 85 percent of the spectrum below 1 GHz, using its market power to thwart competition and prevent competitive carriers from using their own spectrum in the Lower 700 MHz band.” Berry also reaffirmed the importance of the FCC consideration of the Justice Department’s filing while drawing up the rules for the auction.
The Justice Department and the CCA both mention competition in their statements, and those vying for regulations over available spectrum agree competition benefits both businesses and consumers. By providing equal opportunities for mobile service providers to purchase spectrum, consumers decide which carrier to use based on services, features and promotions provided to them. Mobile service providers benefit from competition restrictions so they can grow their business efficiently and offer competitive incentives to customers. Providers can expand their network coverage to meet new demands and to accommodate new technology innovations which utilize more powerful networks.
Although the Justice Department’s filing could sway the FCC, the filing only acts as a petition, not a mandate. Currently, the considerations rest solely in the hands of the FCC. The Justice Department concludes the decision of the FCC directly affects the current telecommunications market. Without regulations in place, companies with fewer resources face an uphill battle to compete against technologies that purportedly place them at a disadvantage.
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