Wireless competition is good for consumers — even if it costs taxpayers extra

The Federal Communications Commission, under the leadership of freshly-confirmed chairman Tom Wheeler, is hard at work on rules that will govern an upcoming spectrum auction. AT&T and Verizon, the nation's largest wireless carriers, want the FCC to hold an unrestricted auction that could allow them to maintain or even widen their lead in premium low-frequency spectrum. Their smaller competitors, especially T-Mobile, are urging the FCC to adopt rules to guarantee that the largest carriers do not wind up with a disproportionate share of that spectrum.

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The Broadcast Television Spectrum Incentive Auction: A Staff Summary

Congress, in passing the Middle Class Tax Relief and Job Creation Act of 2012 in early 2012, authorized the FCC to conduct incentive auctions, with the first auction to be of broadcast television spectrum. Congress further directed that certain net proceeds from the broadcast incentive auction are to be deposited in the Public Safety Trust Fund to fund a national first responder network, state and local public safety grants, and public safety research, and the balance is to be used for deficit reduction.

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