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SUMMARY
Radio spectrum is a public resource. Exclusive private use of public spectrum is carefullylicensed and regulated by the Federal Communications Commission to ensure that such use is inthe public interest. In this proceeding, Qualcomm and AT&T seek approval of their proposedtransfer of
Qualcomm‟s exclusive spectrum license, so that AT&T may use the spectrum in its
future LTE network.The burden of proof in this proceeding lies with the applicants, who have failed to showthat the proposed transfer serves the public interest. Applicants fail to acknowledge thesignificant potential harm of further empowering a dominant, vertically integrated providerthrough the acquisition of additional beachfront spectrum. Applicants instead rely on assertionsthat the transfer will not immediately increase market concentration nor trigger the current,disputed spectrum screen. These analyses fail to take into account numerous long-term risksassociated with approving this application.The transfer as proposed does not serve the public interest. The risks posed by thetransaction are too great, and its potential benefits are too few, too speculative, and will take toolong to take effect. The Commission should deny this transaction, and instead move to make thespectrum available for use by unlicensed devices. This choice offers the most efficient, mostvaluable, and most beneficial use of the spectrum for a diverse range of uses and users.If the Commission instead chooses to grant approval for this transaction, it must offsetthe competitive harms and risks that the transaction poses. The Commission must conditionapproval on safeguards that prevent AT&T from restricting competition and innovation byleveraging its spectrum resources and network infrastructure to harm vertical providers,horizontal competitors, and end users.This Commission has made spectrum and mobile broadband central aspects of its policyagenda and its long-term goals as set out in the National Broadband Plan. But if the Commissionattempts to reach these goals by simply allowing AT&T to grow bigger, the agency may wellend up doing more harm than good for the public interest.
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