Third round of consultations on 2.6GHz auctions
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Get your spectrum here, lovely spectrum, we got all sorts Ofcom has announced a third consultation on the bidding process for 2.6GHz and 2010MHz, both frequencies being desirable for the next-generation telephony crowd including both the WiMAX and LTE standards.â¦
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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.
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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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Bidding on the most attractive block of wireless frequencies in the government auction exceeded the $4.6 billion minimum.
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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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Google has said that it will commit to spending at least $4.6 billion in the upcoming 700MHz wireless auction if the FCC commits to greater competition and consumer choice as a requirement for using the spectrum.
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Three members of the new lineup are 2.6GHz chips designed to require a maximum 68 watts of power, compared to 95 watts for the standard versions of the chips.
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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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The upcoming 700MHz spectrum auctions by the U.S. Federal Communications Commission (FCC)&#160;have drawn bid applications from giant companies including Google and AT&amp;T. But a number of small companies and individuals have submitted bid applications as well.Late Tuesday, the FCC announced that it had accepted bids from 96 applicants and has another 170 applications that are incomplete for the auction of highly coveted spectrum that can be used for voice or wireless broadband service.Some of those applicants may not complete their applications. In the FCC&#39;s advanced wireless services auction in 2006, 252 organizations submitted applications, and there were 168 qualified bidders.It&#39;s typical that several initial applicants will bow out before they have to submit deposit payments, said analyst Jack Gold of J. Gold Associates. &quot;When it comes to putting down earnest money, many [applicants] back away or can&#39;t get the money,&quot; he said.Applicants have until Jan. 4 to pay their deposits or resubmit their applications for the auction, which begins Jan. 24.The FCC designed the auction in an effort to attract small bidders. Up for sale is 62MHz of spectrum in the 700MHz band, now occupied by U.S. television stations. In late 2005, Congress passed legislation requiring U.S. TV stations to move to all-digital broadcasts and abandon analog spectrum between channels 52 and 69. The deadline for TV stations to end broadcasts in the 700MHz band is February 2009.The spectrum is broken up into five blocks, with three of the five blocks divided into small geographic areas. A 12MHz block of spectrum called the A block is divided up into 176 small geographic areas, called economic areas, as is the 6MHz E block. The 12MHz B block is broken up into 734 local areas called cellular market areas. Bidders can win multiple regional or local licenses.But the chances of small companies winning significant amounts of spectrum is &quot;pretty slim,&quot; Gold said. &quot;Any areas with significant population densities will bring in the big boys, who seek revenues from a mass market,&quot; he said. &quot;I suppose some smallish rural areas may be of less interest to AT&amp;T [or] Verizon, but these guys want true countrywide networks, so they will likely bid there anyway.&quot;Several unfamiliar names are among the prospective bidders who submitted incomplete applications:-- Office of Spectral Ecology, listed as an unincorporated association, with one board member, based in Montreal.-- Dragon Arch, listed as a corporation based in New York City.-- FaithFone Wireless, a Phoenix wireless carrier launched in September 2006. FaithFone is a self-described &quot;purpose-driven Christian mobile phone company, offering a cell phone service combining faith and family content.&quot; FaithFone&#39;s wireless service offers daily devotionals, Bible passages and a prayer of the day through text messaging.-- The Navajo Department of Information Technology.-- Part-15.org, a nonprofit organization for users of unlicensed wireless spectrum.Smaller companies with annual revenue of less than $15 million that have submitted complete applications include:-- Grain Spectrum, based in Sarasota, Florida, a minority-owned company focused on building wireless networks for government users.-- GreenFly, a mobile services provider founded in 2006 and based in Scottsbluff, Nebraska.-- Xpressweb Internet Services, an Internet service provider based in Kanab, Utah.The auction, expected to raise more than $10 billion, is likely to last several weeks. Many spectrum experts call the 700MHz band &quot;beachfront&quot; property because it can carry wireless broadband signals three to four times farther than some other spectrum bands.Since early December, applicants have been in an FCC-mandated quiet period. The FCC spectrum auction rules prohibit collusion on bidding plans.
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The FCC releases names of 266 companies officially planning to bid in the government's upcoming 700-MHz-spectrum auction. More than half those botched their initial applications, including big names like Verizon, AT&T,  Qualcomm and Alltel. They have until Jan. 4 to qualify for the auction.
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Bidding stalled on Tuesday in the  closely watched auction of a piece of wireless airwaves that  the U.S. government is selling, according to data released by  the Federal Communications Commission.
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If the FCC obeys its demands Google's riches are exceeded only by its cheek. When the Federal Communications Commission auctions off the coveted 700-MHz wireless spectrum, the search giant has said it will lay down a bid of $4.6bn - provided the auction is handled exactly the way Google wants it handled.â¦
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Top bidders put up a total of more than $2.4 billion in the opening round of the Federal Communications Commissionâs auction of coveted U.S. government-owned airwaves.
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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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Bidding remained stalled Tuesday on  a key piece of spectrum in the U.S. 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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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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One of the major questions as the U.S. Federal Communications Commission kicks off a multibillion-dollar spectrum auction Thursday is whether the auction will produce a winning bidder that will challenge telecom and cable-based broadband providers with a national wireless broadband network.Other questions will also be answered in coming weeks as the auctions, for 62MHz of long-range, high-speed spectrum, unfold. Will Google or another bidder buy enough spectrum to launch a &quot;third pipe&quot; broadband network? Will any bidders step forward and pledge to build a nationwide broadband and voice network for emergency response agencies?The bids to watch in the 700MHz auctions are for the C block, a 22MHz band of spectrum broken up into 12 regional licenses, and the D block, 10MHz of auctioned spectrum paired with another 10MHz set aside for a combined national commercial/emergency response agency network. Startup Frontline Wireless, one of the primary backers of the public-private model for an emergency responder network, announced in December that&#160;it had ceased operations.&quot;The pull-out of Frontline leaves the whole D Block auction up in the air,&quot; analyst Jack Gold of J. Gold Associates said in an e-mail. &quot;There is no way to know if a last-minute group will come on board. While the goal of establishing a universal network for public safety/security is a laudable goal, it is not the most lucrative area from a pure business perspective, so it is not clear how much demand there might be or who might step up to the plate to make this work.&quot;The FCC may have made a mistake in adopting the plan by Frontline, a company with former FCC chairman Reed Hundt as its vice chairman, said Carlyn Taylor, a senior managing director in business consultancy FTI&#39;s corporate finance practice.&quot;I&#39;m not sure how well [Frontline&#39;s plan] hung together from a financial standpoint,&quot; Taylor said. &quot;I&#39;m not sure anybody else is going to try to do what Frontline says they were going to do. There doesn&#39;t seem to be anybody else with a similar approach.&quot;If any other company bids on the D block, it will be much less than the FCC would have received without the national public safety network build-out rules, Taylor said.But the Public Safety Spectrum Trust (PSST), the nonprofit group of emergency response agency representatives that&#160;controls the public safety portion of the spectrum, said earlier this month it continues to support the FCC plan for the D block. The FCC should &quot;do all that it can&quot; to advance the public-private partnership meant to bring about the nationwide public safety broadband network, said Harlin McEwen, the PSST&#39;s chairman, in a statement. &quot;While it would not be appropriate for the PSST to comment on any potential bidder&#8217;s strategy, we want to restate our enthusiasm for and commitment to what the FCC has done.&quot;In the C block, the FCC required that&#160;winning bidders operate under open-access rules, meaning the winning bidder must allow any legal devices to connect to the network and allow customers to access any legal Web content of their choosing. Google, which pushed for the open-access rules, has&#160;pledged to bid at least $4.6 billion for the C block, and the FCC later set that figure as the minimum price it will accept.FCC rules prohibit potential bidders such as Google from commenting on their spectrum plans in the run-up to the auction. Bidding is anonymous, but the FCC will release some information about the auctions at its auction Web page.But several wireless industry observers have suggested that Google may not want to win the C block spectrum. Google, by getting the FCC to adopt the open-access rules and by pushing Verizon Wireless and AT&amp;T to&#160;open up their current wireless networks to outside devices and applications, has already accomplished much of what it has wanted, Taylor said.&quot;I think it&#39;s fairly widely believed that [Google] doesn&#39;t really want to be the actual carrier,&quot; Taylor said. &quot;That doesn&#39;t mean they still wouldn&#39;t buy spectrum and then work with somebody else who&#39;s a carrier.&quot;A subcontracting arrangement with a wireless carrier would make sense for Google, she said.Blair Levin, a telecom analyst with Stifel, Nicolaus &amp; Co., also doubts Google will be a major player in the C block bidding. With the U.S. stock markets tanking in recent weeks, Google may not want to spend $10 billion to build a national network, he said, referring to the estimated cost.Before the FCC set the auction rules in July, Google had also inquired about the legality of selling spectrum on a wholesale basis. The FCC ruled that such a plan would be legal.In addition to the current wireless giants AT&amp;T and Verizon Wireless, other companies to watch are the cable television providers, satellite TV providers and handset maker Qualcomm, Taylor said. Qualcomm and cable provider Cox were among the 214 bidders approved by the FCC this month.Look for wireless carriers such as AT&amp;T and Verizon to bid defensively, she said. &quot;If the traditional mobile carriers really are the final winners of most of the spectrum, then nothing interesting happens,&quot; she said. &quot;They don&#39;t want to see some major new entrant coming in.&quot;Falling stock prices on Wall Street may discourage some competing bidders, with the auction coming at &quot;precisely a bad time&quot; for investment in a new nationwide network, Taylor said. But these auctions may be the last chance for a third nationwide broadband network, she added.The 700MHz spectrum band carries wireless broadband signals three to four times farther than some higher spectrum bands, making it perfect for long-range broadband networks. &quot;If you&#39;re going to build a green-field network from scratch, you want to build it at low megahertz like this,&quot; Taylor said. &quot;If anybody was seriously considering launching a fully new competitor ... from scratch, this is the chance. There isn&#39;t going to be another one, probably.&quot;