US: AT&T threatens to pull out of spectrum auction

AT&T is reportedly threatening to not participate in the Federal Communications Commission’s upcoming spectrum auction if the government’s plans for auction rules regarding the reservation of spectrum for small rivals become a reality.

The FCC’s recently drafted spectrum rules proposes some of the spectrum to be put aside for non-dominant owners of the low-frequency airwaves, say reports. Those proposals are not yet official rules for the auction, however.

AT&T warned that it would restrict its spectrum bidding in certain markets that cover more than 70 percent of the nation’s population in a filing made by AT&T vice president of federal regulatory, Joan Marsh, telling regulators that the proposed rules would force the wireless firm to spend its money elsewhere.

”Such restrictions would but AT&T in an untenable position, forcing AT&T to reevaluate its potential participation in the auction,” the filing said.

The FCC is hoping the auction, scheduled for the middle of next year, to raise up to $7 billion.

Full Content: Chicago Tribune

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