Chairman Response Regarding Incentive Auctions
June 11, 2014
THE CHA IR MAN
The Honorable Mike Mcintyre
U.S. House of Representatives
2428 Rayburn House Office Building
Washington, D.C. 20515
Dear Representative Mcintyre:
Thank you for sharing your views on the importance of the Broadcast Television
Incentive Auction. The Incentive Auction is a once-in-a-lifetime opportunity to expand the
benefits of mobile wireless coverage and competition to consumers across the Nation-
particularly consumers in rural areas -
offering more choices of wireless providers, lower prices,
and higher quality mobile services.
A priority of the auction will be to ensure that nationwide providers that already possess
significant amounts of low-band spectrum are not able to use the auction to keep competitors
from accessing the spectrum they need to provide additional choices to consumers. This is
vitally important to rural communities, where such spectrum is necessary for competitors to
provide improved service to areas that currently have poor or no wireless coverage.
Additionally, the new 600 MHz Band will be licensed using Partial Economic Areas
(PEAs), which will promote entry into the market by a broad range of wireless service providers.
PEAs are smaller than Economic Areas (EAs), and divide urban and rural areas into separate
service areas. Licensing the 600 MHz Band in this way will encourage entry by wireless
providers that contemplate offering wireless service on a localized basis. PEAs are small enough
to allow bidders to acquire spectrum over a limited coverage area-often only a few counties-
which should enable small businesses and rural providers to compete with larger wireless
providers in these areas.
Designed with the goal of preserving and promoting competition, the Incentive Auction
can deliver to consumers- regardless of their zip code- greater choices, improved services, and
Thank you again for apprising me of your views on this important matter. I look forward
to working with you toward our mutual goal of a successful auction for the benefit of America's
consumers in rural areas and the entire nation.
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