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Tuesday, May 29, 2012

FCC Chairman Challenges AT&T Over Spectrum, Price Claims

AT&T T-Mobile merger

FCC Chairman Julius Genachowski said today that his agency is moving ahead with a plan that could result in public-private spectrum sharing.

During a speech at the CTIA wireless trade show in New Orleans, Genachowski also denied that AT&T's failed bid to acquire T-Mobile has worsened the spectrum crunch or prompted higher prices.

"I'm pleased to announce today that we are beginning to make this next frontier of spectrum sharing a reality," Genachowski said. "We are moving ahead in partnership with NTIA to test LTE sharing in the 1755-1780 MHz LTE band, which could allow us to auction paired spectrum in the next three years."

In March, the National Telecommunications and Information Administration (NTIA) released a report that found approximately 95 MHz of "prime" spectrum in the 1755-1850 MHz band that could be repurposed - and shared - for wireless broadband use. The report suggested a private-public partnership of sorts that "relies on a combination of relocating federal users and sharing spectrum between federal agencies and commercial users."

CTIA 2011

"Given the huge amount of money and time it would take to move all of the federal systems [to other bands] – estimated at $18 billion over at least a decade – sharing is the most promising way forward before deadlines in the Spectrum Act will compel us to auction the 2155-2180 band unpaired," Genachowski said today.

T-Mobile on Friday "filed an experimental application to test the sharing concept," the chairman said.

In February, T-Mobile announced plans to roll out its 4G LTE network in 2013, thanks in part to the AWS spectrum it gained from the failed AT&T merger deal.

That ill-fated acquisition, however, has not led to a spectrum shortage or high prices, Genachowski said.

"The overall amount of spectrum available has not changed, except for steps we're taking to add new spectrum on the market," he said. "At its core, the argument – that competition is bad for consumers – is at odds with basic free-market principles."

In a blog post, AT&T said "the merger AT&T proposed last year was all about creating more capacity by combining the spectrum holdings and networks of two companies. The FCC was within its rights to withhold its approval. But it is incorrect when it denies the impact such decisions have on the price of wireless services."

For more from Chloe, follow her on Twitter @ChloeAlbanesius.


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