The US Federal Communications Commission (FCC) has come up with a proposal to encourage smaller companies to participate in next year’s spectrum auction.

The idea is for smaller players to form partnerships with larger companies or lease spectrum to existing operators, means to offer both financial and operational support. Particular mention was made of encouraging entry by companies owned by “women and minorities”.

The news was in a blog by Roger Sherman, the commission’s wireless telecommunications bureau chief.

Smaller networks stand a better chance of becoming fully fledged faciltiies-based competitors with this kind of support, argued Sherman.

A notice of proposed rulemaking embodied the thinking.

“Perhaps most importantly, the NPRM [Notice of Proposed RuleMaking] recognises the challenge of entering into a marketplace in which more than 95 percent of existing customers are served by the top four providers,” wrote Sherman.

He also cautioned that the commission will police the new policy in case there are moves to take advantage of the new flexibility to gain a discount for the larger incumbents.

Small businesses entering the mobile market must be acting independently, he said.

Sherman also aired another regulatory concern over the forthcoming auction – banning the largest operators from bidding together.

“If two of the largest companies are able to bid as one combined entity in the auction, their combined resources may have the effect of suppressing meaningful competition,” he noted.

According to a recent media report, Sprint and T-Mobile US are planning to raise $10 billion and create a joint venture to bid in the 2015 auction. The two companies are also thought to be in merger discussions.

“Therefore, the item tentatively concludes that joint bidding arrangements between nationwide providers should not be allowed. It also asks questions about such arrangements between providers of different sizes,” concluded Sherman.