Wireless Competitors Intensify Push for D-Block Auction with AT&T’s T-Mobile Deal
AT&T’s T-Mobile deal raises the stakes for carriers seeking the 700 MHz D-block in a commercial auction, telecom industry officials and observers said Tuesday. AT&T and Verizon Wireless are the only carriers with nationwide 700 MHz holdings. The deal may bolster arguments to increase the spectrum assets of AT&T’s remaining competitors, but it may still be politically difficult for lawmakers to side against public safety, which wants the spectrum reallocated before this year’s 10th anniversary of 9/11, officials said.
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"The proposed merger means further spectrum consolidation and less consumer choice, which increases the need for competitive carriers to have access to additional useable spectrum,” said Rural Cellular Association President Steven Berry. “A commercial auction of the D-block will provide some additional ‘beachfront’ spectrum to competitive carriers and potential new entrants."
The deal may signal that AT&T doesn’t believe additional spectrum will be available soon, said a former Hill staffer. If that’s the case, getting a piece of the D-block becomes more important for Sprint and other wireless competitors, the former staffer said.
The merger “may actually strengthen the case for making the D-block available” to competitors by auction, said Michael Calabrese, director of the New America Foundation’s Wireless Future Program. The top two carriers have “beachfront spectrum,” but Sprint doesn’t have comparable spectrum below 1 GHz, he said. Adding 10 GHz to Sprint’s inventory wouldn’t give the carrier as much as AT&T or Verizon, but without it the No. 3 carrier would be “even more disadvantaged,” Calabrese said.
Politics may still favor reallocating the D-block to public safety. “There is no argument out there that comes close to matching the high-level political support for reallocating D-block spectrum to public safety at this time,” said Jeff Silva, a Medley Global Advisors analyst. “Momentum to reallocate the D-block to first responders … will likely be insurmountable the closer it gets to the 10th anniversary of 9/11."
A Sprint spokesman said the deal shouldn’t affect the D-block debate, because a network shared for commercial and public safety uses remains the best choice for building a nationwide public safety network.
T-Mobile, which has led the push for a D-block auction, hasn’t said whether its D-block advocacy would change in light of its proposed merger with AT&T, a company that supports reallocation. T-Mobile didn’t respond to a request for comment. AT&T said Monday it will continue competing with T-Mobile in all areas (CD March 22 p1). The Hart-Scott-Rodino Act imposes penalties on parties that act on the interests of an acquiring company before a purchase is complete.
"While the transaction could force T-Mobile to dial down its aggressive lobbying campaign in support of a D-block auction, the carrier might be reluctant to actually change its official policy position because it might need to re-engage on the issue if the merger fails to go forward for some reason,” Silva said.