Rural Carriers Petition for Spectrum Cap

Telecommunications_Tower_Clipart.jpg

An association of rural wireless carriers are petitioning the Federal Communications Commission to re-impose a spectrum cap, RCR Wireless News reports, in light of AT&T Mobility and Verizon Wireless’s growing market presence in the cell phone industry.

“In the absence of a spectrum cap, Verizon and AT&T will continue to grow unchecked, and rural and regional wireless carriers will be adversely affected as they attempt to obtain spectrum and compete against consolidated nationwide wireless carriers who possess greater resources and economies of scale,” said Michael Higgins Jr., president of the Rural Telecommunications Group, in the report. In other words, the big guys will eat the little guys.

What’s happening is that the big carriers are finding news ways of skirting obstacles in order to gain control of additional spectrum. Verizon’s entire $28 billion purchase of Alltel last month, for example, was really about spectrum. Most of Alltels unique services will likely disappear, in the grand Verizon acquisition tradition.