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Policy

T-Mobile: Aggregation Limits Can Boost Revenues

Takes Aim at AT&T Study Saying Limiting Spectrum Holdings Could Reduce Auction Take 12/09/2013 4:29 PM Eastern

 

The FCC continues to get very different input on its spectrum auctions from the telco industry.
 
While AT&T warns of the auction-impairing strategy of limiting bidders' additional spectrum holdings, T-Mobile argues that dire warnings of lost revenues from aggregation limits are "unfounded," and both have studies to back up their arguments.
 
To make that point, T-Mobile late last week submitted a study to the FCC from University of Maryland economics professor Peter Cramton that says aggregation limits have in the past generated high revenues and improved competition.
 
"With reasonable spectrum-aggregation limits in place, the 600 MHz auction will be no exception to this rule," T-Mobile told the FCC.
 
Cramton also takes aim at the AT&T study, saying it was based on "faulty assumptions to reach faulty conclusions."
 
FCC chairman Tom Wheeler has indicated he might be open to aggregation limits if they increase the chances of an open, competitive and successful auction.
September