700MHz Spectrum Auction  RSS Feed

CTIA Position:
CTIA-The Wireless Association® strongly supports the open and fair auction of licenses for spectrum in the 700 MHz band with flexible service rules that will allow the wireless industry to continue its unequaled innovation and service to more than 240 million customers. 

CTIA opposes encumbering this valuable spectrum with unnecessary regulations and restrictions that place bidders on unequal footing, limit the utility of the spectrum, and ultimately drive down the value to consumers and the U.S. Treasury. 

The 700 MHz spectrum auction will enable the delivery of broadband solutions to our nation’s first responders and commercial wireless service providers, drive technological innovation, bring advanced wireless data services to rural America, and is expected to contribute billions to the U.S. Treasury.


Key Points:

  • Any Entity Acquiring Spectrum Through the Well-Established Competitive Bidding Process May Use That Spectrum As It Sees Fit. When a company purchases spectrum, it is allowed to execute its unique business model and offer services to consumers. If Google or any other company believes it has a model that will succeed, then it is free to enter a spectrum auction and bid in the competitive process. No company is precluded from participating, so special rules and conditions are unnecessary.
  • Command-&-Control Proposals are Counterproductive & Threaten to Constrain Potential Uses of the 700 MHz Band. The FCC many years ago moved away from strict, limiting license conditions – known as “command and control” – in favor of market-oriented flexible use policies. Imposing more stringent performance mandates and reverting back to command and-control service requirements in the 700 MHz band would interfere with natural market forces and distort incentives for innovation and investment to the detriment of consumers. There is no basis for disrupting these market-oriented, flexible-use spectrum policies. Auctions with flexible service rules put valuable spectrum in the hands of those who will put it to the highest and best use. Accordingly, licensing and service rules for the 700 MHz band should remain unchanged to ensure that the spectrum auction proceeds as set by Congress are realized.
  • The Wireless Market is a Success Story That Exemplifies the Benefits of a “Light Touch” Regulatory Approach. The competitive wireless industry has a proven track record of responding to consumer demand—without regulatory intervention. For consumers, vigorous mobile wireless competition has meant lower prices, improved service quality, expanded coverage, and new service offerings. The industry’s rapid response to ever-changing consumer demand is a testament to the deregulatory approach Congress and the FCC have taken with the mobile wireless industry. An open 700 MHz spectrum auction with flexible service rules will provide opportunities for new entrants to enter the broadband marketplace and provide consumers with incomparable communication capabilities, freedom, and convenience that will dramatically change the way Americans live, work, and play.
  • Geographic Build-Out Requirements for 700 MHz Licensees Run Counter to the Public Interest & Could Harm Consumers. CTIA supports rational population-based build-out requirements to fulfill the goal of providing service to where people are located, not merely to every corner of a license area. Forced build-out in certain areas will only short-change investment elsewhere in broadband network deployment, improved coverage, or greater capacity. Geographic build-out could have the opposite of the intended effect, actually delaying services to consumers as carriers best equipped to build-out and serve rural areas choose not to bid on encumbered licenses or are forced to return spectrum from license areas they otherwise would have developed. Forcing uneconomic build-out by multiple licensees, while at the same time limiting wireless carrier access to universal service seems illogical.
  • The Digital Television Transition (DTV) Legislation Provides Public Safety with Timing & Funding Certainty for Access to Valuable Spectrum & Interoperable Communications. CTIA has long advocated designating spectrum and allocating resources to the public safety community to enhance their capabilities and make interoperable communications a reality. Congress allocated a significant portion of spectrum—24 MHz—in the 700 MHz band for public safety when it passed the DTV legislation. Just as importantly, Congress set a firm deadline for the DTV transition and put aside $1 billion of upcoming auction proceeds for grants to provide equipment and training for public safety interoperability. By allocating the necessary resources and setting a hard date, Congress has given the public safety community the tools to help meet its important goals and needs.