The FCC is likely to reach a decision on two...
The FCC is likely to reach a decision on two key spectrum issues by early fall -- on how much of Clearwire’s 160 MHz of spectrum should be added to the commission’s spectrum screen and how much broadcast TV spectrum…
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Verizon Wireless and AT&T will be allowed to buy in the upcoming incentive auction, said Guggenheim analyst Paul Gallant in a Friday research note. “It is too early to draw any firm conclusions, but we suspect the agency will attempt to steer a middle ground that increases the spectrum ownership cap without promising that AT&T and Verizon can make major acquisitions or dominate the broadcast TV spectrum auction,” Gallant said. The FCC recently took in comments on two related issues, the spectrum screen and rules for the incentive auction. Gallant predicted the FCC will add, at a minimum, 70 MHz to the 435 MHz denominator used in the screen. Under current FCC policy, the commission looks most closely when a carrier holds more than one-third of the spectrum included in the screen in a given market. Assuming the FCC makes changes “the current 145 MHz screen seems likely to be reset anywhere from about 170 to 200 MHz per company,” Gallant said. “In theory, the additional headroom from a higher spectrum screen should allow AT&T and Verizon to actively participate in the broadcast auction (assuming no deals before then). But the public comments suggest ways that the FCC still might limit AT&T and Verizon from unlimited auction participation.”