Spectrum public safety plan meets resistance
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(InfoWorld) - A plan to have private investors build a national wireless broadband network for police and fire departments met resistance at a U.S. Senate hearing Thursday, including from the man in charge of New York's emergency broadband network. Startup Frontline Wireless, backed by two former U.S. Federal Communications Commission (FCC)Â chairmen and several tech industry heavyweights, would set aside 22MHz of wireless spectrum from an upcoming auction of the 700MHz band for a dual-use commercial and emergency response network with the winning bidder required to build a nationwide network that would give priority to police and fire departments. A national broadband network for emergency response agencies would take billions of dollars to build, and a public-private partnership like the one Frontline has proposed is the only way it will happen, said James Barksdale, president and CEO of investment group Barksdale Management and a partner in Frontline. The U.S. government lacks the money to build the network, he said. "We're not asking agencies to give us the spectrum," Barksdale said. "And public safety gets a free ride on it -- that's a heck of a deal." Six years after the Sept. 11 terrorist attacks on the U.S. and two years after Hurricane Katrina, emergency response agencies across the U.S. still do not have broadband networks that allow agencies to talk to each other, said Barksdale, former CEO of Netscape. "The FCC can achieve, at no cost to taxpayers, an interoperable public safety network that, I submit to you, will never be built if we don't do it this way," Barksdale told the Senate Commerce, Science, and Transportation Committee. "We are long past the time to talk about what might happen or should happen or is going to happen for public safety. Any serious proposal must address how this costly network will be funded and built without relying on government funds." But several people at the hearing, including Paul Cosgrave, commissioner of the New York City Department of Information Technology and Telecommunications, questioned the Frontline plan. New York has already built a $500 million emergency network that will roll out fully in early 2008, and the Frontline proposal could take away local control of emergency communications networks, he said. Spectrum that's optimal to use for emergency communications in New York may not work for Boise, Idaho, he said. "A national network, based on a one-size-fits-all approach, may not meet the disparate communication needs of emergency responders throughout the country," Cosgrave said. In addition, if emergency responders must share spectrum with commercial providers, the network may be jammed during disasters, Cosgrave said. The proposed network will be "dominated by commercial interests, and deployment and maintenance will be undertaken based on return on investment rather than effective emergency response," he added. The Frontline plan would take 10MHz from 60MHz scheduled to be auctioned by early next year and pair it with 12MHz of spectrum out of 24MHz set aside for public safety. The 84MHz of spectrum is becoming available after Congress voted early last year to require U.S. television stations to abandon the spectrum and move from analog to all-digital broadcasts. The deadline for the transition to digital TV is in February 2009. Under the Frontline plan, the winner of the auction for the 22MHz would be required to build a national broadband network, estimated by Barksdale to cost $12 billion. The network operator could then collect wholesale fees from emergency response agencies and from commercial telecoms that want to use the spectrum to provide broadband services. Frontline is also asking the FCC to create rules that would require the winner of the 22MHz chunk of spectrum to resell access to any customer that can pay. Several consumer groups and tech companies have also called for open access provisions for part of the auctioned spectrum, saying it represents the best chance for a new national broadband provider that would compete with cable and telecom company offerings. The FCC is expected to set service rules on the spectrum to be auctioned within weeks. Representatives of two wireless carriers told the committee they oppose open access rules in the auction. Dick Lynch, executive vice president and CTO at Verizon, suggested open access and net neutrality rules called for by several groups would limit the appeal of the spectrum and drive down the cost the U.S. government receives in the auction. The auction is expected to raise at least $10 billion with many observers suggesting much more money will be bid. "The auction must make the spectrum available in ways that will promote, not cripple, broadband deployment," Lynch said. [Open access and other] requirements are unwarranted, would deter innovation, and would not benefit consumers." Senator Ted Stevens, an Alaska Republican, also questioned the Frontline plan, saying the proposal doesn't address how local police and fire departments will pay for handsets and other equipment used to access the network. The best way to raise money for public safety equipment is to maximize the value of the spectrum at auction, he said. "There's no reason this [spectrum] shouldn't go into the private sector and be profitable, too," he said. Several Democratic senators and Wanda McCarley, president of the Association of Public-Safety Communications Officials International, were more receptive of the Frontline plan. The proposal includes many ideas that many emergency response officials want, McCarley said. "With this auction we stand at a crossroads," added Senator John Kerry, a Massachusetts Democrat. "Either we can provide extraordinary benefits to millions of Americans, or we can tilt the broadband policy to improve the already significant position of the powerful few that deliver this service. I think there's a clear path that we have to take -- the airwaves belong to the American people."
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A Florida company seeks to change FCC rules against selling such equipment to local and state agencies.
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(InfoWorld) - The U.S. government has given away between $140 billion and $480 billion worth of radio spectrum to wireless providers and broadcasters since 1993, according to a study released Tuesday. The New America Foundation, a think tank calling for new ways to manage U.S. spectrum, said most of the giveaway has come not through underperforming auctions but through "below the radar" lobbying tactics by spectrum holders. Much of the spectrum giveaway comes through strategies like case-by-case waivers for flexible spectrum use granted by the U.S. Federal Communications Commission (FCC), poorly defined spectrum boundaries, and spectrum holders polluting neighboring spectrum, said J.H. Snider, author of the study. In many cases, the FCC has automatically renewed spectrum licenses even through spectrum law allows for licensing for "limited periods of time," he added. The U.S. government raised about $40 billion in more than 80 spectrum auctions since 1993, Snider said at a forum in Washington, D.C. But wireless providers and broadcasters, in financial reports to the U.S. Securities and Exchange Commission, have given that spectrum a value of about $180 billion, he said. The spectrum is likely worth much more than those estimates, he added. Using past auction figures, the value of the spectrum could be more than $520 billion, he said. The U.S. government is losing "mega dollars," said Bob Edgar, a former Democratic congressman and president and CEO of Common Cause. "We've got to generate some reasonable recovery" of the spectrum value, he said. He compared the current auction model to New York City licensing hot dog stands and giving the vendors the authority to build skyscrapers next door. Edgar, also a United Methodist Church minister, said the U.S. government could provide health care to the poor and several other services with the money if it charged the full amount for the value of the spectrum. Gary Bass, executive director of government watchdog group OMB Watch, agreed and called for more spectrum to be opened up to multiple users. "What would be our reaction if we gave away our interstate highway system to General Motors, then General Motors decided what cars were allowed on the highways?" he said. Snider called for a less complicated spectrum policy in the U.S. and a more open process for auctioning and making changes to spectrum allocations. Right now, only a few experts understand spectrum policy, he said. The FCC needs a new way of auctioning spectrum "so the public can value its worth and is motivated to get involved in the process," he said. Participants in the New America forum said it's important to look at FCC spectrum policy now as the agency prepares rules to auction about 60MHz of spectrum in the valuable 700MHz band. That auction is set to happen by early next year. An FCC spokesman didn't immediately respond to a request for a comment on the New America study, but CTIA, a trade group representing wireless carriers, said recent auctions have been successful in raising money for the U.S. government. An advanced wireless services auction that concluded in September raised $13.7 billion for the U.S. government, said Joseph Farren, CTIA's director of public affairs. That auction was "an enormous success" and shows major changes aren't needed, he said. New America has called for open access rules that would require winners of part of the 700MHz spectrum to sell the spectrum at wholesale rates to competitors. Such proposals would decrease the value of the spectrum and limit bids, Farren said. "The most effective and efficient way to action spectrum in the public interest is thorough an open and fair process where all providers are on equal footing," Farren said.
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Cities that try to set up their own broadband networks are facing staunch opposition from cable and phone companies, who see publicly funded fiber-optic networks as a threat to their own bottom line. By John Gartner.
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Tech companies pushing for access to spectrum &quot;white spaces&quot; and for net neutrality and open access on broadband and wireless networks have an antiproperty agenda, said one critic on Wednesday.Open access and other conditions on the 700MHz spectrum currently being auctioned by the U.S. Federal Communications Commission (FCC)&#160;may be suppressing bids and limiting the uses winning bidders have for the spectrum, added Scott Cleland, founder of telecom analyst firm The Precursor Group, speaking at the U.S. Congressional Internet Caucus Advisory Committee&#39;s 2008 State of the &#39;Net Conference in Washington, D.C. Cleland voiced a contrarian view during a discussion of spectrum policy; other speakers called on the U.S. Congress and the FCC to open up more spectrum to unlicensed uses.Open access in the ongoing 700MHz auction at the FCC, widening fair-use rights under copyright, net neutrality, and white-spaces access to television spectrum are all part of a broad and hidden agenda pushed by some tech companies and civil liberties groups, said Cleland, whose company operates the anti-net-neutrality advocacy group NetCompetition.org.&quot;Everybody throws the word &#39;open&#39; around and says open is wonderful,&quot; he said. &quot;But &#39;open&#39; means communal. It means not owned.&quot;Other speakers suggested mobile networks aren&#39;t open enough. Mobile voice providers Verizon Wireless and AT&amp;T have embraced a version of open access in recent months, but they still limit innovative mobile applications, said Jason Devitt, founder of secretive startup Skydeck and cofounder of mobile-phone-application provider Vindigo.Verizon Wireless in November announced it would open its network this year to outside devices, but that doesn&#39;t help mobile application developers, Devitt said. Most of Verizon&#39;s customers will still get their handsets from Verizon, and developers will have to get the company&#39;s permission to include their applications on Verizon-sold phones, he said.&quot;If you&#39;re a developer of mobile applications, Verizon&#39;s announcement makes no difference,&quot; he said.Cleland blasted the FCC for including open-access requirements in about a third of the 62MHz of spectrum in the 700MHz band currently being auctioned, saying some of the requirements may have driven away bidders. In the 22MHz block of spectrum called the C block, the winning bidder must allow users to bring such devices&#160;as mobile phones from other carriers and allow outside applications to run on the network.The FCC&#39;s 700MHz auction began last Thursday, and after 16 rounds of bidding through Wednesday, the high bid for the C block was nearly $4.3 billion, just short of the reserve price of $4.6 billion set by the FCC. High bids for the complete auction totalled $10.8 billion, and the FCC had expected to raise at least $10 billion. The auction will likely continue for several days, depending on bidding action.But Cleland criticized the FCC for imposing conditions on the C block and the D block of spectrum, a 10MHz block that the FCC wants to pair with another 10MHz set aside for public safety. The winning bidder of the D block would be required to build a nationwide mobile and broadband network with the two pieces of spectrum, with the network shared by public safety agencies and commercial users.As of late Wednesday, the D block had received a high bid of $472 million, far short of the $1.3 billion reserve price demanded by the FCC. The FCC may have to re-auction the D block without some of the requirements, Cleland said.When the FCC sets several conditions on spectrum, &quot;the bidders have the freedom not to play,&quot; Cleland said. &quot;An auction is a party. You don&#39;t get people to come to your party if you make it not fun and not a happy place.&quot;Other speakers disagreed with Cleland. The FCC needs to push forward with a proposal that would open up the unused &quot;white spaces&quot; in the spectrum bands used by U.S. television broadcasters, said Michael Calabrese, director of the Spectrum Policy Program at think tank the New America Foundation.Opening up this unused spectrum, which allows the long-range transmission of signals, would allow companies to offer wireless broadband services, particularly in rural areas, Calabrese said.TV broadcasters have opposed unlicensed spectrum use in the white spaces, saying the technology to avoid existing signals is unproven. The FCC is currently testing white-space devices.
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Louis Freeh, former director of the U.S. Federal Bureau of Investigation, has endorsed a wireless spectrum auction proposal from Frontline Wireless LLC, saying its plan represents the best chance for U.S. public safety agencies to get a much-needed interoperable communications system.
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Proposed law could prevent the government from offering broadband access.
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Louis Freeh, former director of the FBI, has endorsed a wireless spectrum auction proposal from Frontline Wireless, saying its plan represents the best chance for U.S. public safety agencies to get a much-needed interoperable communications system.
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Bidding remained stalled Tuesday on  a key piece of spectrum in the government's wireless airwaves  auction, prompting concern regulators will have to modify rules  requiring some of it be shared with public safety agencies.
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Blog: The international proposal backed by major broadcasters had drawn opposition from digital rights groups and librarians who said it would imperil the public's home and fair use rights.
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A progressive Washington think tank Tuesday blasted the Federal Communications Commission (FCC) and the Bush administration for failing to invest in and develop a robust broadband network in the U.S. that can support consumers as well as first responders and anti-terrorist teams.&quot;The policy of relying on market forces that the Bush administration claimed for seven years would propel broad access is irresponsible and insufficient,&quot; Mark Lloyd, senior fellow at the Center for American Progress (CAP), said in a statement on the CAP&#39;s Web site.&quot;The result of administration neglect, industry intransigence and the incompetence of the Federal Communications Commission ... has left the American people and most policymakers with no clear idea where broad services are deployed in the U.S.,&quot; said Lloyd, who is also an affiliated professor at Georgetown University&#39;s Public Policy Institute.Although it&#39;s a nonpartisan organization, the CAP is headed by John Podesta, who served as chief of staff to Bill Clinton when he was president. P.J. Crowley, CAP&#39;s director of homeland security, served as Clinton&#39;s special assistant for national security and joined Lloyd in a call with reporters Tuesday.Lloyd and Crowley urged policymakers, including the presidential candidates, to find government funds to support the building of a 10Gbps, redundant and ubiquitous broadband network. They also urged current leaders to create a commission to implement that goal.&quot;We should not wait for another Katrina or 9/11 for this to happen,&quot; Lloyd said. The CAP said the broadband network could be wired and wireless. The organization also said the network must provide enough components so that if one system fails, another is available and the network can quickly repair itself.The FCC has created an elaborate system to&#160;auction off 700MHz wireless spectrum&#160;starting Thursday, including a special D Block that would be shared by first responders and commercial users.But even the plans to use that portion of the spectrum for public safety imperiled, since the sole known bidder, Frontline Wireless LLC, failed to submit a $128 million down payment to the FCC to qualify to bid. On Jan. 12, the company issued a short statement saying: &quot;Frontline Wireless is closed for business at this time. We have no further comment.&quot;&quot;The bidding on the D Block is a perfect example of the challenge the FCC faces,&quot; said Lloyd, who urged Verizon Wireless or Google Inc. to consider bidding on the D Block. &quot;We need somebody to step up to the plate and if not, the feds must. We cannot rely on market forces alone.&quot;Lloyd said all branches of government need to work with service providers in a &quot;necessary and forced partnership&quot; to bring about a broadband network.Computerworld is an InfoWorld affiliate.
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Several companies have challenged spectrum auction rules recently set by the U.S. Federal Communications Commission, with Frontline Wireless LLC protesting that the auction of the 700MHz band to be auctioned in January could shut out small bidders.
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Philadelphia officials have laid the  groundwork to provide wireless, high-speed Internet access  anywhere in the city, but their plan is threatened under a  state bill that could be signed into law on Tuesday.
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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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Several lawmakers protested a spectrum auction proposal from the chairman of the U.S. Federal Communications Commission (FCC), saying his plan could limit the number of bidders and raise costs to consumers.
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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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Some smaller ISPs want the FCC to designate an unused spectrum for nationwide wireless broadband.