Companies line up against AT&T to block FLO TV spectrum purchase

The big wireless players may not be making any fuss yet, but a group of smaller carriers, organizations and Dish Network Corp. have filed petitions with the Federal Communications Commission to block AT&T Mobility’s purchase of 700 MHz spectrum from Qualcomm Inc.
Cellular South Inc., the Rural Cellular Association and Dish Network each filed their own petition while a group of open Internet advocates put their opposition to AT&T’s plan together in a joint petition.
AT&T agreed to purchase the spectrum that Qualcomm used for its now-defunct FLO TV service for more than $1.9 billion at the end of last year. If approved, the deal would transfer 11 licenses for lower block spectrum in the 700 MHz to AT&T, emboldening its spectrum position in some key markets like New York, San Francisco and Los Angeles. AT&T previously acquired 700 MHz spectrum from Hiwire LLC in a $2.5 billion deal in October 2007 and the FCC auction three years ago.
Opponents argue that allowing AT&T to accumulate rights to more spectrum will negatively impact competition. Short of an outright blocking of the deal, the petitioners offered some alternatives that they would like the FCC to take in their stead.
Dish Network, which captured a significant amount of spectrum in the 2008 auction, asked the FCC to require AT&T to divest some of its spectrum in the aforementioned major markets.
“AT&T’s pattern of spectrum acquisition to date already has created or imminently threatens significant harm to competition industry-wide, including foreclosing actual and potential competitors from acquiring needed spectrum; impairing device interoperability; and limiting the ability of consumers to enjoy the seamless voice and data roaming that they demand. The result has been less competition and less consumer choice,” RCA wrote in its filing.
Cellular South wants the FCC to impose more strict data roaming requirements on AT&T.
The joint petition from Free Press, Public Knowledge, Media Access Project, Consumers Union and the New America Foundation claims that “the transfer as proposed does not serve the public interest. The risks posed by the transaction are too great, and its potential benefits are too few, too speculative, and will take too long to take effect.” It went on to ask the FCC to make the spectrum available for use by unlicensed devices. While mobile broadband has become central to the policy agenda of the FCC, the group argued that the agency “may well end up doing more harm than good for the public interest” if it allows the deal to go through.