Spectrum is the lifeblood of the mobile revolution. And small, nimble companies are the vital organs that push limits, foster competition, and spark innovation.
The significance of these contributions is clear in the booming app industry, where small companies make 78 percent of the most successful apps. But when it comes to providing the spectrum on which app makers depend, it is a challenging task for small communications companies and rural telcos to compete against large corporations for licenses.
However, the FCC’s Designated Entity (DE) program directs the agency to ensure small carriers have the opportunity to bid for spectrum at a discounted price. And it would be a good way to promote competition and enable companies to provide enhanced services to rural constituencies – if it worked.
Instead of spectrum going to small carriers through the DE program in the recent AWS-3 auction, the FCC allowed an industry giant to usurp the rules and win spectrum at a major undeserved discount. It’s not only unacceptable, it’s anticompetitive and doesn’t benefit rural populations in need of more robust network infrastructure.
There has since been a groundswell of broad, bipartisan support to reform DE rules and ensure the program benefits those for whom the DE rules were originally established.
Last week, a group that included carriers both small and large suggested a new DE framework. Among the proposed reforms is a strict $10M cap on the bidding credit available to an individual applicant and a requirement that spectrum resources only be used for the benefit of U.S. consumers.
Together, these proposals would encourage broad participation at auction and bring welcomed diversity and competition to the wireless infrastructure on which we all rely.