AT&T jumps on T-Mobile US and its argument about spectrum rules
T-Mobile US CEO John Legere’s recent video rant against Verizon Wireless and AT&T drew a condescending response from the former suggesting Legere “watch his language,” while the latter also noted the colorfulness of Legere’s comments in questioning the logic.
In a blog post, Joan Marsh, VP for federal regulatory at AT&T, questioned Legere’s argument that the Federal Communications Commission needs to set aside more spectrum in the upcoming 600 MHz incentive auction that Verizon Wireless and AT&T would not be allowed to bid on.
The FCC is currently working on a more detailed framework of rules for the auction proceedings, which are expected to be released next month. The FCC is currently thought to be set on setting aside at least 30 megahertz of spectrum outside of bidding by Verizon Wireless and AT&T, with T-Mobile US and others asking that the amount be increased to 40 megahertz.
Marsh explained that the current spectrum reserve framework would have little impact on AT&T’s ability to bid on spectrum in rural markets, which T-Mobile US claims are areas that have the fewest choices in terms of mobile broadband providers.
“In many rural areas, AT&T’s low-band portfolio is simply not sufficient to trigger the auction restrictions so our bidding in most rural areas will not be restricted, regardless of the size of the reserve,” Marsh stated, adding that AT&T would be unrestricted in bidding for licenses across most rural areas of Maine, Iowa, Nebraska, Kentucky, Montana, Oklahoma, North Dakota, South Dakota, Tennessee and Wyoming.
Instead, Marsh argued that the biggest impact on AT&T’s bidding abilities will be in larger markets where T-Mobile US already claims to have superior network quality and speeds compared with its larger rivals. AT&T said its analysis shows it would be restricted in 44 of the nation’s top 50 markets under current guidelines.
“What the restrictions are actually designed to do is protect T-Mobile from bidding competition in urban markets – even though T-Mobile itself argues that 92% of nonrural Americans have access to four or more mobile broadband providers,” she noted. “Thus, an expanded spectrum set-aside is not about serving rural America. It’s about protecting T-Mobile from competitive bidding in the most urban markets in the country – markets where T-Mobile is currently competing very effectively and boasting about having the deepest spectrum portfolio per customer and the fastest LTE networks in the industry.”
Marsh also counters Legere’s claims about the importance of the upcoming auctions due to signs it could be the last spectrum auction for “decades,” by again questioning T-Mobile US’ lack of participation in the 700 MHz auction held in 2008.
Instead of a greater amount of set-aside spectrum, Marsh said the FCC should instead look to include all bidders for rural licenses and enforce strict build-out requirements that would see those licenses put to use as quickly as possible.
“That would ensure that the spectrum goes to the bidders most likely to make the capital commitments necessary to deploy rural services,” Marsh added.
The FCC late last week garnered a victory in its attempt to move forward on the auction proceedings when an appeals court ruled in its favor on a lawsuit brought by the National Association of Broadcasters, which questioned the FCC’s “methodology” in setting up the initial auction rules. The 600 MHz auction is reliant on television broadcasters returning some of their spectrum holdings in a reverse auction process, with those assets then auctioned off to telecommunication providers.
Bored? Why not follow me on Twitter
