AT&T rebuts spectrum bill criticism from former FCC chief

By Gautham Nagesh - 02/01/12 03:02 PM ET

AT&T on Wednesday pushed back at criticism from former Federal Communications Commission Chairman Reed Hundt of the House Republicans' spectrum auction legislation.

Hundt, who led the FCC from 1993 to 1997, on Tuesday labeled the legislation "the single worst telecom bill" he has seen. He pointed to language that would restrict the FCC's ability to set conditions on firms that buy the spectrum, and worried the largest wireless firms would dominate the auction.

“No one is suggesting the FCC’s conduct of auctions be micro-managed. But Congress — not the FCC — sets policy, especially when it directly impacts revenue needed for deficit reduction. And there is no more fundamental policy point than whether a spectrum auction should be open or closed," responded Jim Cicconi, AT&T's senior executive vice president of external and legislative affairs.

"Congress has every right to tell the FCC it should not be picking winners and losers in the wireless market, or using its ‘discretion’ to tilt the playing field. We need open auctions where every competitor has a fair chance to participate, and that is what the House bill provides."

The House passed telecom subpanel Chairman Greg Walden's (R-Ore.) spectrum bill as part of the payroll tax package in December, but ultimately approved the Senate's temporary extension. Spectrum will likely come up in a conference committee as part of a long-term deal to extend the payroll tax cut.

Walden's legislation is aimed at preventing the FCC from excluding particular firms from bidding in the auctions, which are designed to free up spectrum currently held by broadcasters for wireless use.

Hundt suggested the largest wireless firms could decide to purchase the airwaves just to kill off competition. Walden indicated the FCC could revoke some licenses if one firm buys too many.

Verizon Wireless and AT&T are the largest national wireless carriers, followed by Sprint and T-Mobile USA.