AT&T Considers Boycotting 2015 FCC Spectrum Auction
AT&T, the second-largest wireless carrier in the U.S., is threatening to sit out the FCC’s crucial 2015 spectrum auction due to proposed rules that would reserve portions of airwaves for smaller compe*****s. The dispute centers around regulations that would limit AT&T and Verizon from bidding on up to 30 MHz of spectrum in various markets.
The Core of the Controversy
- Reserved Spectrum for Smaller Carriers: The FCC plans to set aside low-frequency spectrum specifically for smaller providers lacking existing coverage
- AT&T’s Technical Requirements: The company claims a minimum 10×10 MHz allocation is necessary for efficient LTE deployment
- Bidding Restrictions: In markets with less than 70 MHz available, AT&T and Verizon would be limited to bidding on just 3 blocks
AT&T’s Strong Opposition
Joan Marsh, AT&T’s Vice President of Regulatory Affairs, issued a stern warning:
“If the restrictions as proposed are adopted, AT&T will need to seriously consider whether its capital and resources are directed toward other spectrum opportunities that will better enable AT&T to continue to support high-quality LTE network deployments.”
This statement suggests AT&T may redirect its substantial resources away from the auction if the current rules remain unchanged.
The Bigger Picture: Spectrum Scarcity
The wireless industry faces growing pressure as:
- Smartphone adoption continues to surge
- Mobile data consumption reaches record levels
- Carriers compete for limited spectrum resources
This auction represents a critical opportunity for carriers to acquire valuable low-band spectrum, particularly important for rural coverage and building penetration.
Potential Auction Implications
Should AT&T follow through on its threat:
- Auction participation could decrease significantly
- Total bids might fall short of expectations
- The FCC may face pressure to reconsider its rules
TechCrunch has reached out to the FCC for comment on how AT&T’s potential withdrawal might impact the auction’s success.
Image Credit: Mike Mozart via Flickr (CC BY 2.0)
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