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Justice Dept. Suggests FCC Limit AT&T, Verizon Auction Participation

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Jun 25, 2015, 10:06 AM   by Eric M. Zeman   @zeman_e
updated Jun 25, 2015, 10:06 AM

Officials at the Justice Department are concerned AT&T and Verizon will dominate the upcoming 600MHz auction if more protections aren't put in place by the FCC. The agency filed a letter with the FCC this week suggesting the FCC give more weight to the concerns of companies such as Sprint and T-Mobile, which seek to limit AT&T and Verizon's participation. "The Department recognizes that the Commission must balance competing policy priorities in setting the appropriate reserve levels," said the officials. "In balancing these priorities, the Department urges the Commission to give considerable weight in determining the amount of spectrum included in the reserve to protecting and promoting competition, and the well-established competition principle that those with market power may be willing to pay the most to reinforce a leading position." Sprint, T-Mobile and others have asked the FCC to set aside 40MHz of spectrum that cannot be bid upon by AT&T and Verizon. So far the FCC has agreed to a 30MHz reserve, though the rules aren't yet final. T-Mobile, in particular, has fired off plenty of rhetoric in opposition of the two larger carriers' participation in the auction. AT&T and Verizon have responded in kind. The Justice Department didn't explicitly state that the FCC should bump the reserve to 40MHz, but it strongly implied that might be the best course for the FCC to take. The FCC hopes to lock down the rules soon, but the auction won't take place until mid 2016.

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