T-Mobile has requested the Federal Communications Commission (FCC) to limit the amount of spectrum Verizon and AT&T can buy in 2016, but it may not get its way.
The Uncarrier, along with other smaller wireless companies, want the FCC to impose new limits regarding how much spectrum the dominant players can purchase in the upcoming auction next year.
FCC Chairman Tom Wheeler, however, believes the agency should deny this request.
Wheeler is of the opinion that there's no need for more airwaves to be reserved for smaller wireless carriers such as T-Mobile for the government auction in 2016.
So far, small businesses have been able to take advantage of bidding discounts in the U.S. auction of airwaves. Under such practices, for instance, Dish Network Corp partners sought no less than $3 billion in discounts, but smaller carriers want even more airwaves set aside for them. Wheeler thinks they already get enough.
In a new announcement on the official FCC blog, Wheeler said the FCC is already doing enough to increase competition and ensure that dominant players do not get everything. Consequently, Wheeler said he wants to keep the level of airwaves for small carriers at the same level, without any increases or additional limits for AT&T and Verizon.
At the same time, the agency wants to put aside a larger amount of available spectrum for cell service, and with this goal in mind it is buying back rights that local TV stations bought decades ago. After buying back these rights, the FCC plans to sell them to cell carriers in order to help them deliver better service nationwide.
AT&T and Verizon currently own the most spectrum that is best suitable for sending cell data, while smaller carriers such as T-Mobile and others are struggling to keep up. Nevertheless, Wheeler doesn't find it necessary to increase the amount of spectrum set aside for them.
"There will be significant spectrum made available in all markets of the country to all bidders," Wheeler explained. "As a result, consumers will benefit directly from competition in all parts of the country."
This is not a done deal just yet, however, as it is still a proposal at this point. All five commissioners, including Wheeler, are expected to vote on the new auction rules next month, so there's still a chance that something will change.
