Eshoo, Markey, Pallone Caution FCC on Spectrum Auction Rules

Two congressional Democrats want to make sure AT&T and Verizon don't acquire too much of the available spectrum. Sen. Ed Markey, D-Mass., and House Communications Subcommittee ranking member Anna Eshoo, D-Calif., wrote a letter to FCC Chairman Tom Wheeler Thursday cautioning that revenue raised should be only one factor to weigh ahead of the agency's broadcast TV spectrum incentive auction. “While this is no doubt a critical measure of a successful spectrum auction, it should not be the only metric for determining use of this scarce public resource,” they said. “Consistent with the objective of Congress, we applaud you for recognizing the need to include a ‘reserved’ block of spectrum as part of the incentive auction. While this is an important mechanism for achieving greater competition, the Commission should continue to evaluate its auction rules to ensure they are sufficient to prevent excessive concentration of spectrum among the nation’s largest wireless providers.” The agency’s reassessment should not prevent the incentive auction from beginning in early 2016, as planned, the lawmakers said. The FCC’s incentive auction is “a unique opportunity to free up additional low-band spectrum for wireless broadband,” they said. House Commerce Committee ranking member Frank Pallone, D-N.J., wrote a separate letter to Wheeler saying the FCC’s incentive auction rules “should be used to benefit actual small businesses,” citing the more than 800,000 small businesses in New Jersey. “I am deeply concerned, however, by reports that major corporations have been able to game certain FCC rules designed to aid small businesses,” Pallone said. “If these reports are true, large businesses took advantage of loopholes first adopted in the Bush administration. Not only do these Bush-era rules undermine Congressional intent, they may result in real small businesses being boxed out of the telecommunications market.” The upcoming auction gives the FCC “a chance to get this right,” he said. The agency should “make sure its competition policies are geared toward those who need it most -- not just major corporations and incumbents,” he said.