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Sending the Wrong Signals to the Wireless Marketplace: The Return of the Spectrum Cap

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Today the commissioners of the Federal Communications Commission are meeting to vote on two issues that will be pivotal to the future of the wireless industry: (1) whether to impose a “spectrum cap” on wireless providers, and (2) how to design the “incentive auction” of the broadcasters’ spectrum. A spectrum cap would prevent a single provider from acquiring more than a certain amount of the airwaves or “spectrum rights” in a given geographic area Spectrum is the most important input in the supply of wireless services—without it, a provider literally can’t compete.

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