AT&T softens position on open access spectrum
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AT&T Inc. has backed away fromÂ earlier complaints about proposed open-access rules on parts of theÂ 700MHz spectrum to be auctioned by the U.S. Federal Communications Commission by early next year.
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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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Blog: AT&T's deal to sell the iPhone drew criticism from Democrats, and a defense from Republicans. The arrangement might led to an open access requirement for a 700 MHz spectrum auction next year.
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AT&amp;T Wireless has inched ever so closer to shedding its stake in Rogers Wireless. The carrier has reached a tentative agreement with partner Rogers Communications to sell its 34 percent stake.
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AT&T Inc  Chief Executive Randall  Stephenson said on Tuesday the phone company was experiencing  softness in its consumer business, sending its shares sharply  lower in late-day trading.
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(InfoWorld) - U.S. consumers should be allowed to take phones along with them when they switch wireless carriers, and spectrum to be auctioned through the U.S. Federal Communications Commission should include rules requiring the winning bidders to sell access to competitors at wholesale rates, some U.S. lawmakers said Wednesday. Some members of the U.S. House of Representatives Subcommittee on Telecommunications and the Internet also questioned what they called huge early termination fees on wireless telephone contracts. But other lawmakers and executives with wireless carriers questioned the need for new wireless regulations, saying an already competitive market protects customers. The U.S. wireless industry is "vigorously competitive," with four national and several regional carriers, said Representative Fred Upton, a Michigan Republican. New net neutrality and open access rules that would require carriers to open up their networks to new devices and applications could slow wireless innovations, he said. "We should take care to not adopt policies that would set back the highly competitive wireless market," he added. "No matter how you slice it, forced network neutrality smothers investment in a competitive market and in the end will leave consumers worse off with probably fewer choices." But other members of the subcommittee, mostly Democrats, questioned why phones can't switch between wireless networks. U.S. customers should also be able to run any applications they want on wireless networks instead of having limited choices approved by the carrier, said Representative Mike Doyle, a Pennsylvania Democrat. "It's time for consumers to become the deciders of what they want their phones to do," Doyle said. Apple's recent launch of its iPhone demonstrates the "promise and problems" of the U.S. wireless industry, added Representative Ed Markey, the subcommittee chairman and a Massachusetts Democrat. While the iPhone has innovative new technologies, U.S. customers can use it with only one wireless carrier, AT&T, he said. Other lawmakers called on the FCC to go farther than requiring device portability and application choices when it sets the rules for the use of spectrum to be auctioned in the 700MHz band. Part of the 60MHz of spectrum to be auctioned by early next year should include requirements for the winner to offer the spectrum at wholesale rates to other wireless and broadband providers, said Representative Chip Pickering, a Mississippi Republican. A wholesale rule would allow new wireless broadband providers to spring up all over the country, Pickering said. The 700MHz spectrum, now used by U.S. television stations for over-the-air broadcasts, would allow for long-range wireless broadband services, many experts say. The wholesale rule wouldn't put new regulations on existing wireless services, Pickering said. "What's wrong with that?" he asked. There's nothing wrong with a carrier voluntarily deciding to wholesale its spectrum, said Steven Zipperstein, general counsel for Verizon Wireless. "We don't think a business model should be hardwired into the auction by regulatory fiat," he said. Ed Evans, CEO of startup carrier Stelera Wireless, questioned whether a wholesale business model would succeed in the new spectrum. "You're going to give up a scarce resource ... that you're not going to be able to recoup the value on," he said. "You're going to prohibit other people from deploying proven technologies in that same area." But Jason Devitt, cofounder and former CEO of Vindigo, a company that distributes local guides on mobile phones, said the U.S. needs a more open wireless system where application providers don't have to work out deals with wireless carriers. "We have a regulatory system that doesn't work," said Devitt, now CEO of Skydeck, a wireless startup. "I'm mad as hell that I require permission to innovate in the wireless market." While wireless customers usually have to switch devices when they switch carriers, U.S. television subscribers don't have to buy a new TV set when they switch from cable TV service to satellite, added Timothy Wu, a professor at the Columbia Law School and supporter of open access rules. "There's something strange about this industry," he said. "Even the rules of personal property ... seem to be suppressed."
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Blog: AT&#38;T's deal to sell the iPhone drew criticism from Democrats, and a defense from Republicans. The arrangement might lead to an open access requirement for a 700 MHz spectrum auction next year.
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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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Cingular Wireless, which plans to acquire Redmond-based AT&amp;T Wireless Services Inc. shortly, reported decreased operating income in the third quarter, while it increased revenue on accelerated subscriber growth
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AT&T will participate in the FCC's wireless auction, but hasn't decided whether to bid for the open-access 700 MHz band.
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Verizon Wireless has dropped its court challenge against the government's consumer-friendly rules governing an upcoming airwaves auction Â but it's a bit early for supporters of the plan to declare victory.
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Three of the nation's dominant local telephone companies said on Thursday that they had seen a sharp drop-off in new residential lines leased to competitors since AT&T Corp.  announced a retreat from residential service in July due to changing federal rules.
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A majority of the US Federal Communications Commission has voted to conditionally approve Cingular Wireless&#39; proposed acquisition of AT&amp;T Wireless Services Inc.
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A final decision by the US Federal Communications Commission on Cingular Wireless&#39; proposed purchase of AT&amp;T Wireless Services Inc.
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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. Verizon Wireless, in a brief filed Monday, asked the U.S. Court of Appeals for the District of Columbia Circuit to review the FCC's decision to require so-calledÂ open-access rulesÂ on about a third of the 62MHz of spectrum in theÂ 700MHz band scheduled to be auctioned in January. The FCC voted in July to require that the winner of 22MHz of spectrum allow any wireless devices to connect to the network, meaning wireless telephone customers could bring their handset devices from other carriers. The FCC also prohibited the winning bidder on the 22MHz block of spectrum from blocking or slowing wireless and Web content from competitors. Those rules are "arbitrary, capricious, unsupported by substantial evidence and otherwise contrary to law," Verizon Wireless said in its brief. Verizon spokeswoman Debra Lewis said the company will let the brief "speak for itself." Media reform group Free Press, a supporter of the open-access rules, accused Verizon Wireless of sending "lawyers, FUD and money" in an attempt to overturn the FCC's decision. The FCC's open-access rules were a "small step on the long road to breaking up the anticompetitive, anticonsumer oligopoly that controls almost every level of the wireless marketplace," Free Press said in a statement. Frontline Wireless, another supporter of the open-access rules, said in a statement that Verizon's lawsuit "throws a wrench into the auction to promote competition and innovation for consumers." Google also criticized Verizon's lawsuit. The open-access rules are "a big step for consumer choice and competition," Chris Sacca, Google's head of special initiatives, wrote on Google's public policy blog. "Apparently, one of the nation's major existing wireless carriers doesn't think consumers deserve more choices." The wireless spectrum is a valuable public resource, Sacca added. "The nation's spectrum airwaves are not the birthright of any one company," he wrote. The 700MHz spectrum is being abandoned by U.S. television stations after Congress has required them to move from analog to all-digital broadcasts by February 2009. Many tech, broadband and wireless vendors are eyeing the spectrum for next-generation wireless and broadband services; wireless signals can travel about four times farther in the 700MHz band as signals in higher bands. Many groups calling forÂ net-neutrality laws for broadband providersÂ have suggested that the 700MHz band is the best chance in the coming years for a third broadband service that competes with cable and telecom providers. The open-access rules, similar to net-neutrality rules, could help foster a third competitor, but many open-access supporters wanted the FCC to also require the winning bidding to provide wholesale access to competitors at wholesale prices. Verizon Wireless and other critics have suggested the open-access rules will limit the options for the spectrum. The rules could drive down the price the U.S. government gets for the spectrum, and they could discourage the winning bidder from rolling out innovative new services on the spectrum, critics have said.
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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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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.