Association Responds to Auction End

WASHINGTON, D.C. -- The Cellular Telecommunications & Internet Association (CTIA) issued the following statement, concerning the close of the spectrum auction, which grossed $16.9 billion for taxpayers.

"This is a $16 billion dollar victory for taxpayers," said Tom Wheeler, CTIA president and CEO. "We must thank Senator Judd Gregg and Chairman Kennard for standing up to the special interests, ensuring that the licenses were auctioned and that tax payers received market value for their asset. In earning an additional $11 billion for the U.S. Treasury, Gregg and Kennard also ensured the integrity of future competitive auctions - a policy win for all Americans."

The licenses had originally been purchased through auction by Nextwave in 1995 for $4.7 billion. But, after making a $500 million down payment, Nextwave declared bankruptcy. Last year, however, Nextwave and its creditors spent more than $1 million lobbying Congress and the FCC in an effort to win a sweetheart deal, at one point offering $5.3 billion for the licenses. But members of Congress, led by Gregg and Kennard, stood fast. They insisted that the licenses, having appreciated significantly since 1995, be put up for auction. Their decision to deny the special interest deal netted $11.6 billion extra.

"This most recent auction demonstrated the value of spectrum in a spectrum-starved market. We need to lift the spectrum cap and provide more spectrum for 3G deployment," continued Wheeler. "Today, we risk falling behind the rest of the world in the race for the new, new thing - the wireless Internet. Europe and Japan have each set aside up to twice the amount of spectrum as the United States for 3G technology and other wireless services. Further, we need a long-term spectrum management plan. Such a plan would help ensure spectrum availability in years to come, allowing the industry to continue providing innovative services and cutting-edge technology to U.S. consumers."