June 03, 2013 1 min read

CFA Comments Filed at the FCC on Auction Rules for the TV Spectrum

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The claim that public policy should not seek to shape competition in the wireless market flies in the face of critically important decisions made by public policy that have gone a long way to determine the current market structure. Indeed, the gift of huge quantities of low-frequency, high-quality spectrum to the dominant incumbent wireline carriers is the cornerstone of their current market dominance. The need to address the mal-distribution of high-quality spectrum is magnified by the fact that the initial head start of free access to a large swath of high-quality spectrum was not the only thumb that public policy placed on the scale of competition to favor the dominant incumbents. The current highly-concentrated market structure was reinforced over the years by vertical integration into the backhaul market (i.e. dominance and premature deregulation of special access) and reconsolidation of the telecommunications sector through the ill-considered approval of mergers between the “Baby Bells.” Adopting pro-competitive auction rules is the first and most important step in rebuilding competition in the wireless sector.

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