FCC wireless chief seeks to block joint spectrum bidding

Roger Sherman, head of the FCC Wireless Bureau, posted an innocuous-seeming blog on the FCC website today, calling for support of the commission’s Notice of Proposal of Rule Making in the upcoming spectrum auction. This NPRM, said Sherman, “proposes to update our rules in a way that recognizes – and confronts – the challenges new entrants face in entering the wireless industry.”

Sherman says simply, “Our goal is to promote the participation of as many parties as possible in the auction.”

However, he goes on to conclude from the proposed rules that the proposed Sprint/T-Mobile joint endeavor on auction bidding should be blocked. Says Sherman:

“If two of the largest companies are able to bid as one combined entity in the auction, their combined resources may have the effect of suppressing meaningful competition. Therefore, the item tentatively concludes that joint bidding arrangements between nationwide providers should not be allowed.”

This is Sherman’s tentative conclusion. The NPRM is now open for public comment, and may yet be changed before it is implemented.

Empowering Small Businesses (FCC blog, Roger Sherman, Aug. 1, 2014)