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Spectrum Exchange, which is developing private market mechanism t...

Spectrum Exchange, which is developing private market mechanism to ease 700 MHz band-clearing through secondary auction, told FCC it opposed CTIA request that Commission review Wireless Bureau’s decision to stick to June 19 auction date. FCC set May 3…

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as deadline for receiving oppositions to CTIA application for review of bureau decision earlier this month. “The major commercial wireless operators, like the incumbents in most industries, at times have an incentive to restrict new capacity to limit competition,” Spectrum Exchange said. “At other times, they do better with restrictions lifted to expand their own capacity. In making spectrum decisions, the Commission should ignore the first voice and listen to the second.” Company countered recent concerns raised by CTIA that activities of Spectrum Clearing Alliance, which includes broadcasters such as Paxson Communications, could raise antitrust concerns. CTIA said “concerted action by a combination of licensees who clearly exercise market power over the disposition of the upper 700 MHz band spectrum” raised antitrust issues and created more uncertainty. Spectrum Exchange said CTIA’s “prolonged effort to keep the 700 MHz band off the market” could be viewed as similar concerted action in cellphone market that raised antitrust concerns. It said CTIA application for review cited Bush Administration budget proposal that would delay statutory auction date requirements for upper and lower bands of 700 MHz and said delay also was proposed in White House budget blueprint of year ago, “yet no new legislation has been enacted.” Spectrum Exchange stressed “compelling public interest” in not delaying June 19 auction date for both upper and lower bands. “We have an opportunity for voluntary clearing to work,” filing said. “But the opportunity is fragile and delay could cause it to quickly slip away.” It warned that if broadcasters concluded that Ch. 60-69 auction would be subject to continued delay, “likelihood of their clearing before the end of the digital transition becomes remote.” Separately, Spectrum Exchange and Intel met with FCC Comr. Martin last week to urge that auction to move forward June 19. In ex parte filing they said voluntary clearing at 700 MHz was “close to becoming a reality. The alternative to a June auction date and to spectrum-clearing arrangements for channels 59-69 is the gross underutilization of this prime spectrum for the foreseeable future.” Intel Communications Policy Dir. Peter Pitsch said Intel had such meetings with all 4 commissioners’ offices and said company’s weighing in on 700 MHz issues shouldn’t imply “anything about our participation in the auction.” Intel has been subject of industry speculation in recent weeks that it may be among companies interested in participating in auction. Short-form filings for upper and lower band are due May 8. Pitsch told us: “We thought it was in the public interest for the auctions to go forward and that the auctions would reduce spectrum scarcity, particularly for wireless Internet applications.” Intel position is that proponents of delaying auction don’t have alternative plans for clearing 700 MHz spectrum and delay would result in those bands’ being “underutilized for years,” Pitsch said.