NEW YORK (TheStreet) -- In the upcoming incentive auction for wireless spectrum, the Federal Communications Commission (FCC) seeks to advance widespread deployment of mobile broadband in rural America with the infusion of additional 600 MHz "low" band spectrum into the wireless market.
What's the best approach to achieving the goal of expanded rural service? Don't restrict the auction by cutting out companies that currently serve rural America and want to expand their presence there.
FCC Chairman Wheeler kicked off a lively debate on this issue in his recent blog post maintaining that:
While no disagreement exists on the need for more spectrum and the policy goal of expanding mobile broadband availability in rural America, the realities of today's marketplace suggest an alternative view on the best way to bring affordable and ubiquitous mobile broadband services to more of America's heartland. Sprint and T-Mobile contend that that the success of the spectrum auction depends on the FCC's ability to limit AT&T (T) and Verizon's (VZ) future spectrum purchases. Yet, neither Sprint (S) nor T-Mobile (TMUS) has publicly committed to use any additional spectrum to serve rural America. Instead, a recent study by Dr. Anna Maria Kovacs reveals that these wireless entities have informed Wall Street that they would limit high-speed wireless broadband coverage to a population of only 250 million. For America's rural consumers, their plan means far less broadband service coverage from Sprint and T-Mobile than what these companies offer to their existing voice service customers. In fact, it appears that their goal in utilizing new spectrum is to limit enhanced broadband service mainly to the nation's urban centers.
"The low-band spectrum we will auction is particularly valuable because it has physical properties that increase the reach of mobile networks over long distances at far less cost than spectrum above 1GHz. Today, however, two national carriers control the vast majority of that low-band spectrum. This disparity makes it difficult for rural consumers to have access to the competition and choice that would be available if more wireless competitors also had access to low-band spectrum."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV