Verizon has asked the Federal Communications Commission (FCC) to withhold 50MHz of spectrum in the 4.9 GHz band from FirstNet, claiming that handing it over would effectively be a $14 billion gift to rival telco AT&T.

The telco strongly opposes the Public Safety Spectrum Alliance's (PSSA) decision to propose the 4.9 GHz spectrum be given to FirstNet, and in a filing last week to the regulator, instead suggested that the FCC hold an auction.

"The impact of a spectrum giveaway on the commercial wireless marketplace would be similarly dramatic, particularly at a time when the Commission and other policymakers are working to replenish the empty pipeline for mid-band spectrum," said Verizon to the FCC.

"Providing AT&T with access to an additional 50 megahertz of mid-band spectrum that would largely be put to use for commercial customers would result in a substantial windfall."

Verizon notes in its filing that The Brattle Group recently valued the 50 MHz spectrum in the 4.9 GHz band at more than $14 billion.

First Responder Network Authority (FirstNet) is a network built to support America’s first responders and the extended public safety community. The network has been built to be used by AT&T.

However, Verizon also operates in the same segment of the public safety wireless market, and has its own dedicated solution for first responders, under its Verizon Frontline business.

Earlier this year, DCD visited Camp Shelby, Mississippi, where Verizon, along with its Frontline team, partnered with the US Military to carry out a training exercise in preparation for when networks go down during a natural disaster.

"Today, the public safety wireless marketplace is highly competitive, and a grant of free spectrum to one provider would undermine that and do nothing to benefit public safety users served by other providers," it said in its filing.

"Our first responder service, Verizon Frontline, offers wireless services and network features that compete—successfully—with AT&T’s FirstNet-branded service."

Verizon advises an auction

Instead, Verizon suggests that rather than giving the 4.9 GHz spectrum to FirstNet, that it should go to auction.

"The resolution of the current 4.9 GHz band proceeding and the threat of FirstNet’s takeover in the band has generated much uncertainty for existing licensees, stalling further licensee investment in the band, and the current freeze on new licensees remains in effect," said Verizon.

"A decision to give away 4.9 GHz to FirstNet will only cause further delay and uncertainty as to the future of the band."

Verizon added that the FCC "must consider a lawful way to assign this spectrum through an appropriate competitive process (e.g., auction, bidding process, etc.) rather than gifting the spectrum to one commercial provider."

Verizon added that if there were to be an auction, it would support proceeds being given to public safety priorities, such as NG911.

"To be clear, Verizon does not believe that is the best way to serve local public safety needs or expand usage of the band, but PSSA’s proposed giveaway – especially at a time where there is an urgent need to create a pipeline of additional mid-band spectrum for commercial use – would harm competition, violate the law, and undermine sound spectrum policy."