Auction bid triggers airwaves open access
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A bidder on Thursday offered $4.71  billion for a key slice of wireless airwaves being sold by the  government, triggering a condition that the spectrum be  accessible to any device or software application.
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Top bidders put up a total of more than $2.4 billion on Thursday in the opening round of the Federal Communications Commission's auction of coveted U.S. government-owned airwaves.
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The winner of the C block license in the 700-MHz auction must provide open wireless access to all devices and applications.
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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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Business & money: Â· Auction poses threat to established networksÂ· Ofcom wants spectrum from Vodafone and O2
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A federal airwaves auction starting today is expected to bring consumers improved wireless broadband services and will likely provide the last opportunity to create a nationwide challenger to the big cellphone companies.
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The bidding topped $3.7 billion on  the second day of the U.S. Federal Communications Commission's  auction of government-owned airwaves, but there were no new  suitors Friday for a closely watched block of spectrum to be  shared with public safety agencies.
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High-speed Internet access, streaming video, music downloads and other special new features may soon be in store for mobile phone owners thanks to an unprecedented airwaves auction.
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A multi-billion pound auction of  airwaves for a new wave of digital services is announced by Ofcom.
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As the FCC opens a multibillion-dollar spectrum auction, questions remain, including  whether the auction will produce a winning bidder that will challenge telecom and cable-based broadband providers with a national wireless broadband network.
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Top bidders put up a total of almost  $2.78 billion on Thursday in the opening rounds of the Federal  Communications Commission's auction of coveted U.S.  government-owned airwaves.
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An anonymous bidder has met the reserve price for the so-called C-block of 700 MHz in the FCC's ongoing auction, virtually guaranteeing that the FCC's open-access conditions will be met. Open-access advocates greeted the news with mixed reactions.
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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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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.
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The U.S. Federal Communications  Commission on Thursday received the first bids in an auction of  valuable 700-megahertz wireless airwaves.
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Agency to auction licenses for communications; consider cell phone use during flights.
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A nationwide block of&#160;spectrum in the 700MHz band being auctioned&#160;by the U.S. Federal Communications Commission received a high bid exceeding the &quot;reserve,&quot; or minimum, price of $4.6 billion on Thursday morning.A block of eight licenses covering the 22MHz C block of spectrum being sold by the FCC received a high bid of $4.7 billion in the 17th round of the 700MHz auctions, completed early Thursday. The C block is the portion of the 700MHz band on which the FCC will require open-access rules, meaning the winning bidder must allow outside devices such as mobile handsets from other carriers and must allow users to run outside applications on the network.Some critics have complained that the&#160;open-access rules&#160;would suppress bidding on the C block, but&#160;Google has pledged to bid&#160;at least $4.6 billion on the C block. Bidding is anonymous during the 700MHz auctions, so it&#39;s impossible to tell which company has the high bid.Through the 17th bidding round, high bids on the entire 62MHz of spectrum being auctioned totalled nearly $12.8 billion. The FCC and U.S. Congress had budgeted the auctions to raise at least $10 billion, but many observers had expected the auctions would raise much more than that.One block of spectrum unlikely to reach the FCC&#39;s reserve price is the D block, a 10MHz band of spectrum that would be paired with another 10MHz assigned to public safety agencies. The FCC required that the winning bidder build a nationwide voice and data network to be shared between commercial users and public safety agencies such as police and fire departments.After 17 auction rounds, the high bid for the D block stood at $472 million, far short of the $1.33 billion reserve price set by the FCC. That bid happened in the auction&#39;s first round on Jan. 24, and there&#39;s been no higher bids since then. If the reserve price is not met, the FCC would have to re-auction the D block.Many members of the U.S. Congress pushed for a public safety network, after emergency responders couldn&#39;t communicate with each other during the 9/11 terrorists attacks and more recent disasters. Police and fire departments in neighboring cities often use different devices on different blocks of spectrum.Critics have pointed to an FCC rule for the D block saying the winning bidder would have to give up millions of dollars in a deposit if it couldn&#39;t come to an agreement on network design with the Public Safety Spectrum Trust (PSST), which controls the public safety spectrum. Scott Cleland, founder of telecom analyst firm The Precursor Group, called that provision &quot;onerous.&quot;&quot;That is not a negotiation,&quot; said Cleland, speaking at a 700MHz forum Wednesday. &quot;Auctions are free markets, and people don&#39;t have to show up.&quot;The FCC may have to re-auction the spectrum without the reserve price and perhaps without public safety obligations, said Michael Calabrese, director of the Spectrum Policy Program at think tank the New America Foundation. The PSST could use its block of spectrum to negotiate service with the auction winner if no build-out rules are in place, he said.A PSST spokesman wasn&#39;t immediately available for comment on the bidding.