The US Department of Justice has written to the FCC warning against indiscriminate use of spectrum auctions, arguing that the mantra of "the highest bidder will make the greatest use" is increasingly outdated. The warning comes in the form of an open letter (PDF, long-winded), just as the FCC is deciding how best to dispose of …
"the highest bidder will make the greatest use"
Unless (for reasons best known to itself) the regulator decides that the highest bidder has bid *too* high, won't be able to keep up their payments and declares the second highest bidder the winner!
This happened way back in 1990 when TVS (who held the ITV franchise for the south of England) massively outbid the competition but the ITC decided that they wouldn't be able to pay that amount and gave it to Meridian!
not likely to change
I doubt this is a real effort to alter the status quo, more likely the DoJ just wanting to be seen doing something in our interest. Once the headline has had its intended effect, the matter will be brushed aside and forgotten about.
Government fighting government
This ought to be good as a spectator sport.
The big problem is that us peons are probably going to be the losers!
Kinda in the category of something like "Global thermonuclear war" (how about a nice game of chess).
Why is the DoJ involved in this?
I can't say I disagree with them (for once), but it strikes me as an odd thing for the department in charge of enforcing criminal law to even have an opinion about.
Re: Why is the DoJ involved in this?
The DOJ probably feels that this is an anti-trust issue -- which they are in charge of.
"fairer spectrum auctions"
My first thought was - who the hell is going to buy a spectrum on eBay nowadays?
Cute little machines they were...
Don't sell the spectrum
Rent it out on a use it or lose it basis.
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