The Monopoly Debate Rages on Between Cellular Giants

Without the opportunity to buy spectrum, AT&T and Verizon Wireless could be especially hurt. The 600 MHz spectrum more easily moves through structures, helping send signal in cities, and can travel longer distances, the Wall Street Journal reports. AT&T and Verizon currently control the vast majority of low frequency spectrum available.

In a letter to the FCC, AT&T stated: “It is surprising that the Antitrust Division of the Department of Justice would even propose measures that are so nakedly designed to help specific companies. The Commission’s mandate under the Communications Act is to promote the competitive process, not to pick winners and losers in that process.” Concerning Sprint, AT&T announced “Sprint already has by far the largest nationwide portfolio of spectrum, and holds vastly more spectrum than either AT&T or Verizon. It will also have ample financial resources at its disposal, as the Department has already approved Sprint’s purchase by Softbank, a financially strong Japanese company, and Dish Network has now made a competing offer for Sprint”.

The implications a restriction of this nature could have on the cellular industry are monumental. If smaller companies are unable to secure the needed amount of wireless spectrum needed to compete, they will struggle to survive. A limit on the amount of spectrum larger companies can purchase restrict their ability to grow. This is the root of the age old debate concerning monopolies.