A new study commissioned by the Competitive Carriers...
A new study commissioned by the Competitive Carriers Association argues that small geographic licenses, such as Cellular Market Areas (CMAs), are the proper size for the FCC to sell in the incentive TV auction. The study says spectrum licenses are…
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analogous to plots of land. “If all plots were 50 acres, parcels in Manhattan would be too expensive and too large for most; this might compel buyers interested in a small parcel in Manhattan or a parcel in New Jersey adjacent to Manhattan to bid for land they don’t want,” the study said. “For carriers who are compelled to bid for wrong-sized spectrum license packages, the added cost may be sufficient to discourage their participation; or if they do participate, they are less likely to offer successful bids; or if they are successful, they will have fewer resources available to deploy services using the spectrum. In each case, the efficiency of the auction and the larger goals of the process suffer.” The study (http://bit.ly/188O86m) was written by the Summit Ridge Group, a valuation and financial advisory service. “Smaller licenses will allow carriers of all sizes the opportunity to target and bid on an area of spectrum that makes business sense for their company,” said CCA President Steve Berry. “All carriers need access to spectrum and should be afforded a meaningful opportunity to participate in the upcoming auction, and offering smaller license sizes like CMAs will ensure smaller rural and regional carriers will be able to participate at auctions alongside the largest carriers.”