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Wireless Spectrum

The FCC Disincentive Auction – My Daily Caller Op-ed

Please don’t miss my new Daily Caller op-ed: “The FCC Disincentive Auction.”

  • It exposes an auction at war with itself, with more economic disincentives than incentives to bid.
  • It also spotlights the irony of FCC auction rules that approve a de facto Sprint and T-Mobile “wireless duopoly” of auction bidders.  

It’s Part 13 of my Spectrum Waste Fraud & Abuse Series. 

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Spectrum Waste Fraud & Abuse Series

600MHz Market Auction or FCC Three-Ring-Circus?

It appears the FCC may be betting again that it is smarter than everyone else in the marketplace. Time will tell.

From the various reports of briefings about the FCC’s planned rules for the 600 MHz incentive auction, two things appear clear. First, the FCC doesn’t trust market forces. And second, the FCC doesn’t want the highest bidders to win the spectrum.

Apparently, the FCC is trying to produce something for everyone in this now circus-like auction process – a proverbial, dazzling three-ring-circus of political compromises that catch and keep different people’s attention.

At core, the FCC reportedly is adding a third ring to the already-complex, unprecedented, two-ring circus of the incentive auction. The first ring is the incentive reverse auction of broadcasters bidding for what they must earn in order to sell their spectrum, and the second ring is what wireless companies will then pay to own the broadcasters’ spectrum.

The FCC wants to add a third ring to this growing auction spectacle. Reportedly the FCC is going to effectively create yet a third auction process that would commence when certain, not-yet-known auction revenue targets are met in the auction. Below those FCC-determined-revenue-targets anyone can bid. Above those targets, the largest potential bidders’ opportunities to bid further would be dramatically restricted.

FYI – New Online Research Library of Precursor’s Top Research Series

Please find the new Precursor online Research Library -- here -- which will be kept up-to-date going forward.

  • It presently catalogues links to ~270 pieces of Precursor research in ~20 ongoing research series.

This should make it much easier to scan and find particular research of interest by subject and theme.

  • An outline of subjects and themes are below.

Thank you.

Scott Cleland

Precursor LLCProven Thought Leadership

 

1G Government in 4G World – My Daily Caller op-ed

Please see my latest Daily Caller op-ed: “1G Government in a 4G World” – here.

  • It is Part 21 of my Obsolete Communications Law  Research Series.

 

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Obsolete Communications Law Research Series:

Arbitrary Spectrum Policy – My Daily Caller Op-ed & Part 11—Government Spectrum Waste Fraud & Abuse Series

Please see my latest Daily Caller op-ed: "Arbitrary Spectrum Policy” -- here.

  • It spotlights the FCC’s arbitrary treatment of its spectrum screen policy in approving Softbank-Sprint.
  • It is also Part 11 of my Government Spectrum Waste, Fraud & Abuse Research Series.

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Government Spectrum Waste Fraud and Abuse Research Series

A 600 MHz “UNE-P-like” Wireless Auction? Part 10 Government Spectrum Waste Fraud & Abuse Series

Just when the pending 600 MHz “incentive” FCC auction looks like it could not get more unworkably complex than a reverse, “incentive,” auction with looming FCC bidder limits, T-Mobile proposes to add a “dynamic” twist where the rules would then change as the auction goes along depending on how much bidders bid relative to a government-estimate that may or may not have any basis in economic reality. 

To use a diving metaphor, this is like a synchronized diving event with unknown dozens of divers that first must do a “reverse” back flip to “incentivize” another set of divers right behind them to then do a front flip, but only if the particular diver before them does a reverse back flip that individually gets a good enough score to make a follow-on dive possible, and then if that happens for some of the diver teams, any follow-on dives would then be scored “dynamically” depending on a random target score of the previous dive, which would then determine if said diver can dive again or not.

That’s essentially the latest T-Mobile “dynamic spectrum rules” proposal for the 600 MHz auction that T-Mobile just proposed and released to reporters.

It can and does get worse.

The economist behind the T-Mobile proposal was Deputy FCC Economist when the FCC was nano-implementing the 1996 Telecom Act and came up with TELRIC pricing and UNE-P. UNE-P was an elaborate FCC ruse to get around the plain language of the Telecom Act and get a 50-60% resale discount for all telecom services (a platform) for CLECs, rather than the ~20% platform resale discount methodology in law.

The New U.S. Spectrum Policy Has Big Problems – Part 9 -- Government Spectrum Waste Fraud & Abuse Series

Please see my latest Daily Caller op-ed: "The New U.S. Spectrum Policy Has Big Problems” -- here.

  • It critiques the new Presidential Memorandum: “Expanding America’s Leadership in Wireless Innovation.”
  • It is also Part 9 of my Government Spectrum Waste, Fraud & Abuse Research Series.

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The FCC/DOJ’s One Gigahertz Spectrum Charade – My Daily Caller Op-ed & Part 8 of Government Spectrum Waste, Fraud & Abuse Series

Please see my latest Daily Caller op-ed: "FCC/DOJ’s One Gigahertz Spectrum Charade" -- here.

  • It is Part 8 of my Government Spectrum Waste, Fraud & Abuse Research Series.

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Government Spectrum Waste Fraud and Abuse Research Series

Wireless competition: What’s the data say?

The CTIA just released its semi-annual statistics on the wireless industry’s performance, and its bad news for all those supposed data-driven, pro-regulation proponents who are in search of evidence or data to justify regulating wireless or wireless spectrum holdings.

The data are more powerful evidence of a competitive wireless industry. Hopefully, this data will nudge the FCC to begrudgingly conclude that the industry is indeed competitive, despite their blinders to the data.

Briefly, the U.S. wireless industry:

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Q&A One Pager Debunking Net Neutrality Myths