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The debate over free wireless and communications spectrum is heating up, and today the Justice Department provided its own piece. Reuters reports:

In comments to the Federal Communications Commission on Monday, the Justice Department said the best way to promote broadband competition was to free up more spectrum and to organize any spectrum auctions so big wireless providers in any given area do not easily win the new spectrum.

The biggest wireless providers are AT&T and Verizon Wireless, a joint venture of Verizon Communications and Vodafone Group Plc. Sprint Nextel and Deutsche Telekom AG’s U.S. unit T-Mobile are seeking to better compete with the others.

“The scarcity of spectrum is a fundamental obstacle that the commission should address,” the Justice Department said. “Reallocating spectrum that is being underutilized would encourage the deployment of wireless services and could help to make such services more competitive with wireline offerings.”

Top FCC officials have voiced concerns about a looming spectrum crisis with the explosion in demand for advanced handsets that are straining some networks.

The FCC has said it is looking at additional ways to free up airwaves after auctioning more than $19 billion in spectrum in 2008. Much of the spectrum came from the shift to digital television last year.

In addition, the FCC is in the midst of crafting a national broadband plan aimed at increasing the number of Internet users at affordable prices.

The wireless trade association CTIA as well as a number of others have been advocating in recent days for a re-allocation of wireless spectrum to provide for the rapidly growing handheld wireless market. You can read more from http://www.reuters.com/article/idUSN0421229120100104?type=marketsNews">Reuters.