Reply Comments of Public Interest Spectrum Coalition on Spectrum Caps

The Petition suggests that the Commission adopt a spectrum cap to alleviate problems with consolidation and abuse of market power in the wireless market. Specifically, the Petition requests that the Commission adopt a county-level aggregation limit of 110 MHz on control of wireless spectrum below 2.3 GHz. Major wireless carriers and trade associations oppose the Petition, contending that spectrum caps are unnecessary as wireless markets remain competitive. Contrary to these arguments, the market for wireless services has changed substantially since the Commission’s 2001 revocation of spectrum caps. An endless series of corporate mergers and constant allegations of unfair dealings in negotiations over roaming arrangements have produced a downward spiral of consolidation and abuse of market power. The wireless market of 2008 demonstrates unequivocally that additional protections, such as the adoption of spectrum caps, are needed to promote competition. Consequently, PISC joins nondominant carriers in support of the Petition, and PISC further suggests the cap be set at 95 MHz, and supplemented by a screen for transactions involving spectrum above 2.3 GHz.

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