In addition to the net neutrality and anti-trust argument, consumer advocacy groups appear to be using spectrum as a tool to fight major telecom mergers like AT&T and BellSouth. The Consumers Union told senators in a spectrum reform hearing yesterday that allowing a company like AT&T to bid on available spectrum would stifle competition in the wireless market. The advocacy group wants the government to ban major telecom operators from buying any more spectrum and instead give that spectrum to startups and new market entrants. The group seems to be grasping at straws here since it is somehow linking more spectrum to the ability to dominate the bundled services market and squeeze out competitors that way. There is actually healthy competition in the wireless market with a plethora of MVNOs battling it out for new customers, too. Meanwhile, Intel pressed senators to adopt market-based spectrum policies that will drive the development of WiMax.