Frontline, AT&T appeal FCC spectrum auction rules
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(InfoWorld) - Several companies have challengedÂ spectrum auction rulesÂ recently set by the U.S. Federal Communications Commission, with Frontline Wireless protesting that the auction of the 700MHz band to be auctioned in January could shut out small bidders. In addition, AT&T has asked the FCC to reconsider requirements for the winning bidder of a block of spectrum to be used to build a nationwide broadband network for public safety agencies. The rules require bidders to reach a service agreement with public safety officials before the auction, and the FCC's decision to deny bidders the spectrum if an agreement is not reached is "an extreme penalty," AT&T said in its petition. AT&T and Frontline, a startup made up of government and wireless industry veterans, filed petitions for reconsideration of the auction rules with the FCC Monday. They were among 10 companies that filed petitions in the last week asking the FCC to reconsider the auction rules it set in July for the 700MHz band of spectrum being vacated by U.S. television stations. The FCC is scheduled to auction 62MHz of spectrum in the 700MHz band beginning Jan. 16. The FCC set a reserve price of $10 billion for the entire 62MHz, but many observers believe the auctions will raise much more than that. The spectrum is currently controlled by U.S. television stations using channels 52 to 69. The U.S. Congress in late 2005 passed legislation that requires the stations to move to digital broadcasts and abandon this spectrum by February 2009. Frontline raised several objections about the auction rules. The company and someÂ consumer groupsÂ had called for the FCC to require that the winning bidder of a portion of the spectrum resell the spectrum at wholesale rates, but the FCC declined to do so. FCC members talked about including small businesses in the auction, Frontline noted. But the FCC denied bidding discounts, called credits, for small business wholesalers, Frontline said. Small businesses can't compete against large wireless carriers unless they adopt a wholesale model, the company said. "Wholesaling is also the only model a new nationwide wireless network operator could realistically afford to adopt, given the massive costs associated with providing retail service -- consider Verizon's 2,300 retail outlets and its $1.9 billion annual advertising budget," Frontline said in its petition. Frontline also suggested the reserve, or minimum prices, for two blocks of spectrum are too high. Frontline objected to a reserve price of about $1.3 billion for a 10MHz portion of spectrum to be paired with 12MHz set aside for emergency response communications. Frontline said the $4.6 billion reserve is also too high for another 22MHz of spectrum, for which the FCC adopted so-called open access rules. If the reserve price is met, the FCC will require the winning bidder to allow customers to bring wireless devices from other carriers and prohibit the winner from blocking or slowing competing Web content. Under the FCC rules, both blocks of spectrum would be re-auctioned under new rules if the reserve prices aren't met. "The unlawfully high reserve prices will nullify or disrupt and damage the Commission's carefully considered decisions as to the highest and best use of this spectrum, encourage bidding strategies that defeat these sound allocations decisions and seriously reduce auction revenues," Frontline's lawyers wrote. Earlier this month, Verizon Wireless asked the U.S. Court of Appeals for the District of Columbia Circuit to review the FCC's decision to require open-access rules supported by Frontline and some consumer groups. Those rules are "arbitrary, capricious, unsupported by substantial evidence and otherwise contrary to law," Verizon Wireless said in a brief filed with the court.
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Federal regulators are stepping up their pressure on television stations to give up billions of dollars worth of airwaves in major markets around the country, saying the spectrum is urgently needed by local public safety officials.
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Consumer groups and broadband vendors want more market competition for wireless spectrum.
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The head of the Federal  Communications Commission wants to require the winning bidder  in an upcoming auction of valuable wireless airwaves to make  them accessible to consumers using any device or software  application, an FCC source said on Tuesday.
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After tossing Wi-Fi start-up bids for exclusive control of fallow spectrum, federal regulators want public input on how to proceed. Will a new fight over "open access" rules emerge?
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Plans for valuable wireless spectrum being considered by the U.S. Federal Communications Commission may not go far enough to encourage a new broadband competitor, said groups calling for open-access rules for part of the spectrum.
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(InfoWorld) - Within weeks, the U.S. Federal Communications Commission is expected to set conditions for the auction of the most valuable wireless spectrum still available in the United States. The spectrum, in the 700MHz band, is highly coveted by a range of broadband providers, tech vendors, and wireless voice providers for the ability of signals to broadcast long distances and penetrate buildings and other obstacles. With no other auctions of large spectrum blocks on the horizon, many organizations have pitched a range of conflicting ideas and auction conditions to the FCC. "This particular spectrum ... is the single biggest and most valuable block of spectrum I can ever remember, and I've been in this for close to 40 years," said Morgan O'Brien, co-founder of Nextel and author of a much-debated spectrum proposal. "It's unbelievable spectrum, and of course, there's a lot of intense interest in it." Advocacy groups such as Public Knowledge and Consumers Union say this auction represents the best and last opportunity for large portions of the United States to have a third broadband provider that competes with the cable and telecom giants. These groups are asking the FCC to require that part of the auctioned spectrum be sold with so-called open-access rules attached -- meaning the winner of the auction would have to sell wholesale access to the network to any company that wants it. At the same time, large broadband and wireless providers argue that placing heavy conditions on the spectrum would decrease its value and would hamper their efforts to create next-generation services. While the FCC has often set some conditions for auctions, rules on how the spectrum can be used would decrease the number of bidders, suggest critics of open-access requirements. The U.S. Congress has set a goal of raising $10 billion, with about half going to reduce the U.S. government's budget deficit, but some observers expect the auction to raise billions more, if the FCC sets the right conditions. Part of the spectrum, now used by U.S. television stations for over-the-air broadcasts, is targeted for public safety agencies such as police and fire departments. During the Sept. 11 terrorist attacks on the United States, emergency responders found they couldn't talk to each other because they were operating a variety of incompatible communication devices in different areas of the spectrum. In early 2006, after more than a decade of debate, the U.S. Congress voted to require television stations to move to digital broadcasts and abandon the 700MHz band between channels 51 and 69 by Feb. 17, 2009. The move to digital television, or DTV, will free up about 84MHz of spectrum, with 24MHz set aside for public safety. The remaining 60MHz is set to be auctioned by early 2008. Here are some of the ideas for the 700MHz spectrum auction: Cyren Call: One of the earliest proposals seeking changes to the congressional plan for the spectrum came from startup Cyren Call Communications, founded by Morgan O'Brien. His plan, announced in April 2006, would take an additional 30MHz of spectrum for public safety, in addition to the 24MHz assigned by Congress. The spectrum would be controlled through a public safety broadband trust at the FCC and would be available for commercial uses after public safety agency needs are met. Public safety officials embraced O'Brien's plan early, saying it offered them the spectrum they need. The plan found a cool reception in Congress, however, mostly because it would cost billions of dollars in lost auction proceeds. While Congress has not moved to make the necessary changes to the digital television transition legislation that the Cyren Call plan would require, O'Brien said he's optimistic the FCC will adopt the "essence" of his plan. Frontline Wireless, another startup founded by a group of tech and FCC veterans, made a similar proposal in February. The Frontline plan has generated significant debate in Congress and in the broadband industry. O'Brien said the Frontline plan would accomplish many of the same goals, but he still believes his plan is better. "We were building ... as much pressure as we could to get the relief we were looking for," O'Brien said. "When [Frontline] introduced their proposal, it relieved some of that pressure by diverting to a different model." Frontline: Frontline's plan would marry 10MHz of spectrum from the chunk to be auctioned with 12MHz assigned to public safety. That 22MHz would be auctioned, with the winner required to build a network that gives priority to public safety agencies. After public safety needs are met, the network could be used for commercial services, although Frontline has called on the FCC to require wholesale access for other providers. Frontline has assembled a team of tech and wireless industry heavyweights, including CEO Haynes Griffin, founder of Vanguard Cellular Systems; Chairwoman Janice Obuchowski, former assistant secretary for communications and information at the U.S. Department of Commerce; James Barksdale, former CEO of Netscape; and L. John Doerr, a partner in the venture capital firm Kleiner Perkins Caufield & Byers. The Frontline plan gives public safety the best chance for an interoperable, next-generation network, said Reed Hundt, Frontline's vice chairman and a former chairman of the FCC. The difference between the Frontline and Cyren Call proposals is that Cyren Call asked for a "government handout" of spectrum and money, while Frontline relies on private money to build the public safety network, Hundt said. Verizon Wireless has opposed Frontline's plan, particularly its call for open-access rules. Such rules would drive down the cost of the auction, said Dick Lynch, Verizon Wireless' executive vice president and chief technical officer, during a Senate hearing in June. But Verizon wants an auction that favors large providers, Hundt countered. "The way to get a really low price for the treasury is to say Verizon can have it all, because nobody will bid," he said. "Verizon wanted to buy all the spectrum and put it in the bottom left-hand drawer. It's an effort to monopolize." Verizon: Verizon has generally declined to comment about the 700MHz auction, but Lynch, in his June testimony, called on the FCC to auction a 20MHz block of spectrum that can be used across the United States. This would allow the United States to "lead the world" in fourth-generation wireless deployment, he said. Verizon also opposes open-access rules, similar to net neutrality rules proposed by some consumer and advocacy groups for existing broadband networks. "The auction needs to make the spectrum available in ways that will promote, not cripple, broadband," Lynch said. "The commission should set auction rules that allow for full and fair competition by qualified bidders, without artificial and unwarranted constraints." Past competition auctions without such conditions have created a competitive wireless marketplace offering a "broad range of digital offerings," Lynch added. Several conservative think tanks and advocacy groups have also opposed the Frontline plan. Public safety: Public safety groups are not united in their views on the 700MHz auction, particularly since it became clear that Congress would not support the Cyren Call plan. However, some public safety groups have warmed to the Frontline proposal. Frontline has recently embraced the idea of a public safety board that would oversee the network to be built, said Charles Werner, fire chief in Charlottesville, Virginia, and a member of the International Association of Fire Chiefs Communications Committee. The Frontline proposal represents "a perfect storm" that represents the best chance of a national broadband network for public safety, he said. "It also builds off a commercial model, which means you have this ever-evolving network that gives public safety ... all those technology advances that they otherwise would never have." Without something like the Frontline plan, a public safety network may never get built, Werner said. Congress, with many other priorities, doesn't have the political will to build and maintain a national network, he said. "We do not want a national broadband network built and funded by the government," he said. "This is something that's going to have to be maintained from this point on. You can't have that kind of network based on decisions that are going to change." Other public safety officials have opposed the Frontline plan, saying it takes away local control of the network. Save Our Spectrum Coalition: Leading the charge for open-access rules are a group of consumer and advocacy organizations, including Public Knowledge, Consumers Union, and the Consumer Federation of America. The Ad Hoc Public Interest Spectrum Coalition has asked the FCC to include open-access rules with 30MHz of the auctioned spectrum. The coalition has also asked the FCC to require anonymous bidding, instead of its past practice of revealing bidders. Anonymous bidding would prevent auction participants from engaging in retaliatory bidder, the coalition argued. The FCC should act "both to ensure that new spectrum is offered on an open and nondiscriminatory basis and to bring in new entrants interested in challenging the current cozy wireless oligopoly and broadband duopoly," the coalition wrote in comments to the FCC. "The 700MHz auctions will not give birth to the much anticipated third pipe if the licenses are auctioned to the very same ... telephone and cable incumbents that dominate the wireline market." Google: Finally, Google has asked the FCC to allow what it calls "dynamic auctions" of spectrum. The Google proposal would allow, but not require, winners of the spectrum auction to create their own real-time auctions. Wireless and broadband providers and customers could bid in real-time auctions for the right to use a piece of spectrum for a given period of time. A customer could pay a few cents per minute to access the spectrum, Google said. These dynamic auctions would create a more competitive broadband and wireless marketplace, allowing customers to escape long service contracts, said Richard Whitt, Google's telecom and media counsel. "Maybe there's a different way of providing spectrum," Whitt said. "I think most people will believe this is the wave of the future. You have to provide the most compelling service, and users will come to your door."
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Depending on who's talking, the wireless spectrum auction that starts on Jan. 24 will significantly change the mobile and wireless landscape in the U.S., or it won't have much impact at all.Some believe it will lead to creation of new nationwide wireless networks and the entry of new wireless operators. That increased competition could benefit users."This spectrum auction is the first real chance we've had to see a competitor emerge that could compete with the telephone and cable companies," said Gigi Sohn, president of the Public Knowledge consumer rights organization. Aggressive bidding is expected from several well-funded companies that aren't currently in the wireless business, such as Microsoft co-founder Paul Allen's Vulcan Spectrum and Google.Others, however, beg to differ. "The auction won't change anything per se," said Jack Gold, principal of J. Gold Associates, a telecommunications consulting firm. "But other pressures in the system -- market forces -- could ultimately change a lot of things." For example, Gold said he expects more competition and more open wireless networks to emerge over time, no matter who wins the auction.Besides the possibility of new competition, this auction is also receiving a lot of attention because it is likely to be the last time that large chunks of wireless spectrum will become available. Also with this auction, the Federal Communications Commission (FCC) has imposed rules that will, to some extent, open up wireless networks.However, a lot of confusion about the auction remains. Here are the answers to some frequently asked questions.What is being auctioned?The FCC is auctioning off a huge swath of wireless spectrum in the 700-MHz range. This spectrum has been used by television broadcasters, which must return the spectrum to the FCC when they switch next year from analog to digital broadcasts.In particular, the FCC is auctioning many "blocks" of spectrum. Two of those blocks, the so-called C-block and D-block, have enough capacity and geographical coverage to create nationwide wireless networks. The smaller blocks of spectrum also could receive a lot of attention from bidders. Those blocks are regional in nature, and many small telecommunications providers are expected to bid on them.How is the 700-MHz portion of spectrum different than others?The physical nature of the 700-MHz spectrum makes it attractive to users and service providers alike. Many digital cellular systems in the U.S. use radio signals in the 1,800-MHz and 1,900-MHz ranges, although some older analog systems still use spectrum in frequencies as low as 800 MHz. Because radio waves in the 700-MHz range are physically longer than higher-frequency radio waves, they travel farther and are better able to penetrate walls and other impediments.These characteristics are important for several reasons. First, the better penetration makes it feasible to use wireless services indoors. That makes these wireless services competitive with land-line broadband services such as Digital Subscriber Line and cable.A second important advantage is that, because radio waves in this portion of spectrum travel farther, it is easier to bring wireless access into rural areas that currently aren't well served by wireless providers. This greater transmission range also means that operators would need to invest less in towers and base stations and other wireless infrastructure.These advantages, combined with the nationwide coverage, explain why the available 700-MHz spectrum is often referred to in the media as "beachfront property."What technologies can be used in this portion of spectrum?Virtually any wireless technology that is currently in use can also be used in the 700-MHz range. That includes traditional and next-generation cellular service and other wireless broadband technologies such as WiMax.What potential benefits could come from this auction?Besides increased competition, the FCC decreed that the winner of the C-block must make networks that use that portion of spectrum available to any device that employs compatible technology. For example, if a carrier builds an EV-DO 3G (Evolution Data Optimized third-generation) network, any device with that technology built in will be able to access the network.This openness will increase consumer choice. Currently, cellular operators in the U.S. typically limit what devices can be used on their networks and what applications can run on those devices. Because this approach gives them so much control, the incumbent carriers fought the open network provision vigorously.Note, however, that this provision applies only to the C-block. Carriers that win any of the other blocks can continue to limit access to those networks.What other rules apply to the spectrum?The effort to open up new spectrum to all devices was led by Google and several public-interest organizations. In addition, those groups urged the FCC to require that the winning bidders make some spectrum available, on a wholesale basis, to other carriers. That was another attempt to foster more competition among wireless carriers. However, this effort failed. The FCC refused to require winning bidders to resell some of that spectrum although, as always, that could occur voluntarily.There are other limits on how the spectrum can be used. One notable mandate is that any network using the D-block must be built to specifications particular to public safety applications and that portions of the spectrum are available for those uses. Because of the emphasis on public safety, the D-block is mandated to be available to 99.3% of the U.S. population by 2019.There are limits on the other blocks, too. For instance, there are use-or-lose provisions that require wireless networks to be built out within a certain time frame or the license will be lost. This is an attempt to make sure that large companies don't buy spectrum simply to block other companies from acquiring it.Who is bidding?The auction has attracted some predictable bidders, some surprise bidders and many smaller bidders. More than 260 applications to participate in the bidding process were initially submitted to the FCC. The predictable companies included incumbent telecommunications operators such as Verizon Communications and AT&amp;T.Then, there are some well-funded bidders with unknown motives, such as petroleum giant Chevron and Vulcan Spectrum. Also in the mix are some cable operators.Besides the big players, many local and regional wireless carriers have applied to participate in the auction and are likely to bid on the regional chunks of spectrum. A local telephone company, for instance, could use such spectrum to provide wireless broadband service to its local customers using a technology like WiMax.What about Google's bid?The potential bidder that has received the most attention is Google, which has been mum about its specific plans. Most observers believe the company's interest in the auction is tied to its recently announced Linux-based Android mobile phone system.Google likely wants to use Android to sell mobile advertising. However, that won't be successful if existing wireless carriers don't allow phones based on it to be used on their networks. If Google owns the open C-block, it will be certain that phones based on its Android system can be used.Few, however, expect Google to create a whole new wireless network from scratch -- if it wins."Google will rent out the spectrum, said consultant Gold. "It would be insane on their part if they decided to put up their own network. Being landlords of the airspace, that makes sense."As a result, it is widely expected that, if Google wins the C-block, it will work with other providers. For instance, rumors have been circulating that Google will work with T-Mobile USA, which has been constrained in expanding its network by a lack of spectrum. Neither company has been talking about such specifics.How will the auction be conducted?A "mock auction" will be held on Jan. 22, and the auction will begin in earnest two days later. Many observers believe the bidding, which will be largely electronic, could last a couple of weeks.Bidding will be anonymous. That is to say, nobody will know who is bidding or how much they are bidding. The goal of this rule is to prevent collusion aimed at keeping out specific bidders."There are quite a few studies that show that, if you know who is bidding, you can engage in anticompetitive blocking behavior," said Public Knowledge's Sohn.How much will spectrum cost?Buying spectrum will require very deep pockets. In particular, the large, nationwide spectrum blocks will surely be expensive. The C-block, for instance, has a reserve, or floor, bidding price of about $4.7 billion. The total reserve price for all blocks is about $10 billion, and many believe the bidding will go much higher than that.
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The high bids totalled $3.2 billion in the U.S. Federal Communications Commission&#39;s&#160;auction of wireless spectrum licenses in the 700MHz band&#160;after three rounds and a day and a half of bidding.
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Broadcasters are trying to persuade the FCC not to allow wireless Internet services in the white spaces of TV spectrum, plan ad campaign.
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InfoWorld - Verizon Wireless has encountered strong opposition for its request that an appeals court overturn U.S. Federal Communications Commission auction rules on a portion of wireless spectrum.
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The maverick network service provider run by former Netscape CEO Jim Barksdale, and that was largely responsible for convincing the US Federal Communications Commission to impose new and innovative rules for bidders on certain blocks of the 700 MHz UHF spectrum, is now saying it may not be able to bid after all. In a formal complaint to the FCC filed Monday, lawyers for Frontline Wireless accused the FCC of "getting it wrong" by having set the asking price of the choicest blocks in the auction too high.
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After tossing WiFi start-up bids for exclusive control of fallow spectrum, federal regulators want public input on how to proceed. Will a new fight over "open access" rules emerge?
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More than 200 companies qualified to bid in the upcoming auction of public airwaves that could raise as much as $15 billion for the U.S. Treasury. But it's not clear whether any of those companies will fulfill one of the key goals of the auction -- to attract a bidder that would build a wireless...
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While an auction is underway for a large chunk of wireless spectrum in the 700MHz range, the FCC approved a separate deal enabling AT&T to acquire similar wireless spectrum from another owner.
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Small businesses have joined huge players like Google and AT&T in submitting applications to bid in the FCC's wireless spectrum auction.
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(InfoWorld) - A coalition of technology and telecommunications vendors will oppose a plan to give public safety agencies across the U.S. new wireless spectrum, saying it could jeopardize an agreement already in place that would provide spectrum for interoperable emergency communications by early 2009. Members of the High Tech DTV Coalition on Tuesday sent a letter to leaders in the U.S. Congress urging them to reject a proposal that would carve out 30MHz of wireless spectrum for public safety interoperability, instead sticking to legislation passed last year that would give emergency response agencies 24MHz of spectrum. The legislation requires U.S. television stations to move from analog broadcasts to digital television, or DTV. The alternate plan, advanced by Cyren Call Communications, could endanger the compromises in the Digital Television Transition Act, representatives of the High Tech DTV Coalition said at a press conference. Debate over the Cyren Call proposal, echoed in a January proposal from Senator John McCain, could push back by years the date when spectrum is available to emergency responders, said the coalition, whose members include Microsoft, Intel, Dell, and Verizon Wireless. The Cyren Call proposal would take a significant chunk of spectrum slated to be auctioned by the government, with the $10 billion or more in proceeds going for federal deficit reduction and emergency communications interoperability programs, the group said. "We think [the proposal] threatens the progress Congress made last year," said Jeffrey Connaughton, executive director of the coalition. "It's a distraction from what are better solutions for public safety." The High Tech DTV Coalition lobbied hard last year for a bill that frees up spectrum for public safety uses by requiring TV broadcasters to move off the upper 700MHz spectrum band by Feb. 17, 2009. After much debate in Congress, President George Bush signed the bill a year ago. The DTV transition bill represented a fragile compromise, said Jeffrey Eisenach, chairman of Criterion Economics and co-author of a report criticizing the Cyren Call plan. "It would throw, at best, sand in the gears of a process that's been going on for a long time," he said. "I don't think there's a way to unwind this and put it back together simply." The Cyren Call proposal, first advanced last April, calls on the U.S. Federal Communications Commission to put 30MHz of spectrum into a "public safety broadband trust" controlled by the agency. The spectrum would be used for commercial purposes after police, fire, and other public safety agencies' needs are met. Representatives of Cyren Call and McCain didn't immediately respond to requests for comment on the High Tech DTV Coalition. But McCain, an Arizona Republican, called for the government to do more to help emergency responders when he announced plans for public safety spectrum legislation in January. "If we do not act now, this valuable spectrum will be auctioned off, and this opportunity will be lost forever," McCain said in a statement. McCain has been calling for more public safety spectrum since the Sept. 11, 2001, terrorist attacks on the U.S. The 9/11 Commission investigating the attacks and their aftermath recommended additional radio spectrum for first responders because police and firefighters on the scene reported being unable to communicate with each other or with rescue vehicles. The Cyren Call proposal has been endorsed by several public safety organizations, including the International Association of Chiefs of Police, International Association of Fire Chiefs, Major Cities Chiefs Association, and National Sheriffs Association.