Moreover, the FCC's new auction rules also permitted the big industry players to link with smaller partners and placed no limits on how much big firms could invest in their smaller partners. The bad news is that few small businesses without large-company backing received licenses. All of their licenses are based on these partnerships with smaller companies, several of which were created in response to the FCC rules. Small guys lose out Losing bidders and advocates for small business are crying foul. They argue the results of this auction are not just another case of big firms unfairly trumping the interests of entrepreneurs.
Larger issues are at stake.
By providing access to these licenses, the FCC had hoped to spur competition and innovation in the wireless sector. This business is expected to grow massively over the next few years and access to the spectrum is critical for new firms seeking to gain a foothold in the business. Without access now, there is a real possibility that four companies will control the market and new competitors will be permanently frozen out. So rather than stimulate strong competition among many entrepreneurial companies, opponents argue, the FCC licensing procedure led to only four companies controlling the entire new wireless spectrum. Finally, opponents also argue that these licenses also amount to a subsidy for the big wireless players.