If SoftBank-owned Sprint goes ahead with its plans to bid for T-Mobile, it would cause the FCC to re-evaluate and possibly change its rules for the upcoming 600 MHz incentive auctions.
FCC Chairman Tom Wheeler has reportedly proposed limitations for AT&T and Verizon Wireless, who together hold the majority of available low-band spectrum licenses. But the FCC based its rules on “current market structure” and would reconsider if a Sprint-T-Mobile tie-up proceeded, according to a Reuters report.
The FCC is currently planning to set aside up to 30 MHz in each market for smaller carriers to bid on once bidding for those markets hits a set threshold. After the threshold it hit, carriers holding at least one-third of the low-band spectrum in that market wouldn’t be allowed to bid. AT&T has railed against the proposed limitations, saying it could limit them from bidding in markets covering 70 percent of the population. AT&T has gone so far to say it might not participate in the 600 MHz auctions if such limitations are put in place.
AT&T may get its wish for an open auction should Sprint go after T-Mobile.
Although no official announcement has been made, SoftBank CEO and Sprint Chairman Masayoshi Son has openly declared there is a need for Sprint and T-Mobile to join forces in order to compete with AT&T and Verizon.
The potential merger has been met with skepticism from regulators who applaud the current U.S. wireless market landscape, with four large competitors, and wish to maintain the field.
Filed Under: Carriers
