DOJ presses competition case in wireless spectrum auction

The Department of Justice said Wednesday that the Federal Communications Commission (FCC) should give “considerable weight” to competition concerns when deciding whether to expand the block of wireless spectrum reserved for smaller carriers in a coming auction.

The size of the reserve is the subject of a public fight between T-Mobile and the two largest players in wireless, AT&T and Verizon.

{mosads}The FCC is preparing to auction off a significant block of spectrum, the airwaves that carry signals and data to cellphones. Last year, commissioners reserved 30 megahertz for smaller carriers.

But T-Mobile has said that the reserve should be 40 megahertz. It argues that a reserve of that size will allow two, rather than one, smaller carriers to get enough spectrum to compete with AT&T and Verizon — improving competition in the wireless market.

In the Wednesday letter, the chief of the Antitrust Division of the Department of Justice seemed supportive of T-Mobile’s case.

“The Department recognizes that the Commission must balance competing policy priorities in setting the appropriate reserve levels,” said Assistant Attorney General William Baer in the letter.

“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.”

Baer also said the auction should take place as soon as possible.

The auction will be the first in which the FCC buys spectrum from television stations and sells it to wireless carriers.

Baer did not explicitly call for the reserve to be expanded. Still, the letter is a small victory for T-Mobile, which sent its chief executive to Washington to meet with regulators and asked customers to appeal to the FCC.

But the company’s efforts may be dealt a blow Thursday, when FCC Chairman Tom Wheeler could submit his reported recommendation to the commission that they keep the size of the reserve at 30 megahertz. The proposal would come up for a vote at the commission’s July meeting.