Not sure how this should be interpreted. I think this is intrusion into the competition but . . . I think the DOJ is naive about the value of spectrum in rural markets and the appetite for carriers to build more capacity in those areas when they haven't built out the current spectrum.
AT&T, Verizon may face restrictions in 600 MHz auction
In a significant blow to U.S. mobile market leaders AT&T (
NYSE:T) and Verizon Wireless (
NYSE:VZ), the U.S. Department of Justice called on the FCC to ensure Sprint Nextel (
NYSE:S) and T-Mobile USA have ample opportunity to acquire 600 MHz spectrum that will be made available via 2014's incentive auctions of TV broadcast frequencies.
"The Department concludes that rules that ensure the smaller nationwide networks, which currently lack substantial low-frequency spectrum, have an opportunity to acquire such spectrum could improve the competitive dynamic among nationwide carriers and benefit consumers," said the DoJ's Antitrust Division.
The DoJ successfully prevented AT&T's proposed acquisition of T-Mobile in 2011, going so far as to file suit to prevent the deal. Its new FCC filing could set the stage for restrictions on bidding by AT&T and Verizon, the nation's largest mobile operators and holders of considerable amounts of 700 MHz and 800 MHz spectrum, which is particularly useful for transmitting broadband data inside buildings and over long distances in rural areas.
Read more: AT&T, Verizon may face restrictions in 600 MHz auction - FierceBroadbandWireless http://www.fiercebroadbandwireless.com/story/att-verizon-may-face-restrictions-600-mhz-auction/2013-04-14#ixzz2QdHwOhvN
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