T-Mobile representatives warned FCC officials about the dangers...
T-Mobile representatives warned FCC officials about the dangers of package bidding, which both AT&T and Verizon Wireless have advocated for the upcoming incentive TV auction. The “drawbacks” of package bidding include “the creation of an excess supply of licenses upon…
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the withdrawal of a package bid; the creation of new mechanisms to game the auction process; and the competitive risks associated with effectively granting package bidders an additional right to withdraw bids compared to individual license bidders,” T-Mobile said, according to an ex parte filing (http://bit.ly/1dTnCdx). “Given the risks, drawbacks and complexities associated with package bidding, participants ... discussed alternative mechanisms that can reduce exposure risk without substantially increasing gaming opportunities or computational challenges. Reasonable spectrum aggregation limits, for example, can constrain exposure risk in a manner similar to package bidding, but without unduly increasing either auction complexity or gaming opportunities."