Justice Dept. Asks FCC to Free Airwaves

The U.S. should make available more wireless spectrum to foster competition in high-speed Internet access

By Todd Shields

(Bloomberg) — The U.S. should free "underutilized" airwaves for use by wireless companies such as Clearwire Corp. (CLWR) and Sprint Nextel Corp. to increase competition for high-speed Internet services, antitrust regulators said.

"The scarcity of spectrum is a fundamental obstacle that the commission should address," the U.S. Department of Justice said in comments submitted to the Federal Communications Commission today.

The FCC has asked for public comment on whether television broadcasters should relinquish some airwaves to meet a surge in demand for wireless high-speed Internet services. The agency must submit a plan for expanding access to high-speed Internet service, or broadband, to Congress by Feb. 17.

Wireless services can provide an alternative to Internet providers that use wires, such as cable companies and telephone companies, the Justice Department said in its comments. It said a lack of airwaves, or spectrum, is a constraint on wireless companies including Clearwire, Sprint Nextel, Deutsche Telekom AG's T-Mobile unit "and new start-ups."

The Justice Department said there are "unanswered questions" about whether wireless Internet services will be offered at prices to compete with wired Internet services.

Verizon Communications Inc. (VZ) and AT&T Inc. (T), the two largest U.S. telephone companies, are "major providers" of both wireless and wired Internet services, "raising the question of whether" they will offer mobile broadband as replacements for wireline services, the Justice Department said.

'Looming Spectrum Crisis'

FCC Chairman Julius Genachowski cited "a looming spectrum crisis" and raised the idea of reallocating spectrum in an Oct. 7 speech to wireless-company executives at a convention in San Diego.

The Justice Department said in its comments today that "reallocating spectrum that is being underutilized" would encourage development of wireless services and "could help" to make them more competitive with offerings sent over wires.

Reallocation "should be considered when the total value of that spectrum is significantly greater in a new use than in its existing use," the Justice Department said.

Broadcasters have said they need their airwaves for purposes including sending more than one program at a time, and sending high-definition pictures.

"We look forward to a continuing dialogue with policy makers on how broadband and broadcasting can co-exist without jeopardizing digital TV's full potential for consumers," Dennis Wharton, a spokesman for the Washington-based National Association of Broadcasters, a trade group, said in an e-mailed statement.

The Obama administration supports exploring both commercial and government spectrum for reallocation, Lawrence Strickling, assistant secretary for communications and information at the National Telecommunications and Information Administration, said in a letter today to the FCC. The NTIA, which distributed the letter by e-mail, is an arm of the Commerce Department.

To contact the reporter on this story: Todd Shields in Washington at tshields3@bloomberg.net.

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