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



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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