Sprint/T-Mobile Plan To Buy Spectrum Together May Be Blocked By FCC 28
An anonymous reader writes with a FCC proposal that is bad news for Sprint and T-Mobile. A proposal from FCC Chairman Tom Wheeler would block an attempt by Sprint and T-Mobile US to buy spectrum together in the incentive auction that will transfer airwaves from broadcast TV stations to cellular carriers next year. Announced on Friday, Wheeler's proposal seeks to help the smallest wireless companies develop business partnerships with larger ones. But it would not allow partnerships between the biggest carriers, since more than 95 percent of US customers are served by either AT&T, Sprint, T-Mobile, or Verizon Wireless. "Our goal is to promote the participation of as many parties as possible in the auction," FCC Wireless Telecommunications Bureau Chief Roger Sherman wrote Friday. "If two of the largest companies are able to bid as one combined entity in the auction, their combined resources may have the effect of suppressing meaningful competition. Therefore, the item tentatively concludes that joint bidding arrangements between nationwide providers should not be allowed."
Well, we can dream (Score:4, Insightful)
Just a couple edits, and ...
"If two of the largest cable companies are able to combine into one entity in the marketplace, their combined resources may have the effect of suppressing meaningful competition. Therefore, the item tentatively concludes that merger arrangements between regional providers should not be allowed."
Here's hoping.
Re:Common sense (Score:5, Insightful)
A good common sense opinion from Mr. Wheeler and the FCC. So where's that common sense when it comes to net neutrality?
Wrong companies. You'll notice his pet companies Verizon, Comcast and Time Werner aren't helped by this. It's more complicated than pushing things in favor of big business, it's pushing things in favor of the biggest businesses. Sprint and T-mobile combined have less market share than either Verizon or AT&T individually, and I'm sure Verizon and AT&T want to keep it that way.
So, what will happen is a smaller company or combined small companies will buy the spectrum, and then get bought out by Verizon or AT&T.
Re:Common sense (Score:4, Insightful)
I'm sick of people saying that any fee or tax is "Paid by consumers" -- as if we consumers wouldn't be ruined if all taxes were on sales and wages and NONE on profits. Stop parroting this corporate drivel -- it's stupid, and it's damaging.
Taxes come out of profits. If all companies pay them they are the cost of business. Yes they make a company slightly less competitive with exports but we don't export goods that much anymore and we have business being bought from countries that have "onerous" government taxes -- so this is more nonsense.
OK, that off my chest -- I think that T-Mobile and Sprint pooling money and sharing bandwidth is a good thing. It's the only way they can compete with larger cellular companies right now AND the consumer benefits because they've paid more taxes with a higher bid and gotten rid of a few more closed networks. In fact, if all the cell companies just shared the same bandwidth -- we'd be fine.
What about we just tax them 30% of all gross fees on the cell bands and be done with it? More money comes in, and the fee doesn't stop startups.
We don't do this because selling off the public goods to monopolies is the way of business today. And then they take those extra profits and buy yachts or politicians so they can inform people of how consumers end up paying more for a corporate tax and will magically be better off if one guy gets an extra billion each year.