Limiting Incentive Auction Entrants Has Consequences

The Center for Business and Public Policy at Georgetown University’s McDonough School of Business found that bidding rules that bar Verizon Wireless and AT&T from participating in the auction process could reduce auction revenues by about 40 percent – lowering federal auction proceeds from as much as $31 billion to approximately $19 billion.? In addition, lower auction revenues could result in a funding shortfall to support the construction of FirstNet, the nationwide interoperable, high-speed public-safety broadband network mandated by Congress in 2012.? However, if all four major U.S. wireless players are allowed to bid without restrictions, more revenue would be generated – as much as $22 billion could be available for the purchase of broadcast spectrum rather than an estimated $10 billion if the carriers are excluded.