Expert Analysis Believes FCC Incentive Auction Restrictions Would Reduce Revenue

Duke University Professor, Bates White Partner, and former FCC Chief Economist Leslie Marx submitted a report to the FCC that states that proposals to restrict Verizon's and AT&T's participation in the upcoming Incentive Auction would "put at risk its twin priorities of raising significant revenue and reallocating a substantial amount of spectrum from broadcast to mobile wireless services." 

The proposed rules to the Incentive Auction would limit Verizon’s and AT&T’s ability to bid for spectrum. The motive behind these rules is to encourage smaller firms to participate in the auction, but Dr. Marx explains that, “I have analyzed proposals to restrict the participation of Verizon and AT&T in the Incentive Auction in order to prevent the anticompetitive foreclosure of smaller rivals. The evidence does not support assertions that anticompetitive foreclosure is likely.”

The FCC is expected to reach a decision concerning the Incentive Auction by the end of the year. Dr. Marx conducted this research on behalf of Verizon Wireless. The report was submitted to the FCC on September 18, 2013.