Does the FCC really need to create new rules for wireless providers to make sure that competition is able to take place on a level playing field? Many people seem to believe so…

On June 29, the Federal Communications Commission is planning to auction 90MHz of radio spectrum, which is projected to bring in between $8 billion and $15 billion for the government. Companies are interested in snapping up the 1,122 licenses for that spectrum so they can roll out more third-generation, or 3G, mobile networks capable of shuttling voice, data, video and other services at higher speeds.

For more than a decade, the FCC’s policy was to unveil each participant’s identity and bid for each license at the end of every auction round. Spectrum auctions, which occur electronically, historically have lasted anywhere from a few days to a few months, depending on the number of licenses up for grabs.

But in a public notice (click here for PDF) released in late January, the agency said it had concerns about potential anticompetitive effects arising from that approach.

Citing reports from economists, regulators said they worried that if information about bidders were revealed during the auction’s multiple and simultaneous rounds, sneaky participants could use that information to “signal” each other. Through that tactic, they could find ways to coordinate their own bids–perhaps resulting in lower-than-market-value prices for licenses–or to fight off competing ones… Source: News.com

[tags]mobile networks,3g,next-generation,wireless bids[/tags]