Critic: Tech companies trying open spectrum too much
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InfoWorld - Tech companies pushing for access to spectrum "white spaces" and for net neutrality and open access on broadband and wireless networks have an antiproperty agenda, said one critic on Wednesday.
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After tossing Wi-Fi start-up bids for exclusive control of fallow spectrum, federal regulators want public input on how to proceed. Will a new fight over "open access" rules emerge?
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There's yet another hostile takeover in the tech sector's works.
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Companies trying to deploy Internet phone calling face varied costs depending on the technology provider, according to a report.
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By Nolan, Hamilton  ANALYSIS  EVERY SO OFTEN, the FCC considers revising its ownership rules for media entities.
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Consumer groups and broadband vendors want more market competition for wireless spectrum.
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Wireless companies are upping their technology bets.
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(InfoWorld) - New broadband providers should be given a better chance of winning pieces of valuable wireless spectrum to be auctioned by early next year, several groups said Friday. The groups, including Google, startup Frontline Wireless, and consumer advocate Public Knowledge, called on the U.S. Federal Communications Commission to change the way it auctions spectrum when it sells off 60Mhz of spectrum to be freed up when U.S. television stations move to all-digital broadcasts. The auction of the coveted 700MHz band of spectrum -- which allows broadband-speed wireless signals to travel farther and penetrate buildings better than some other bands -- presents the best hope U.S. consumers have of a third major broadband service to challenge cable and DSLÂ carriers, said Michael Calabrese, director of the Wireless Future Program at the New America Foundation, a think tank that hosted Friday's spectrum forum. "If we do nothing -- if we take the [auction] rules we've used for the last 10 years, the same incumbents are going to win," added Harold Feld, senior vice president of the Media Access Project, an open media advocacy group. "There is no competition fairy. There is no magic that's going to happen that if we just deregulate enough, somehow a new competitor is going to emerge." The groups at the spectrum auction forum didn't agree on all the details, but they suggested that the way the FCC has auctioned spectrum in the recent past has favored large incumbent telecom carriers. The FCC is expected to set the rules and conditions for the auction of the 700MHz band of spectrum in the coming weeks. The groups called on the FCC to require that the winners of a chunk of the spectrum allow "open access" -- sell access to competitors on a wholesale basis. The open access requirement would allow a nearly unlimited number of competitors to offer wireless broadband services, said Gigi Sohn, president of Public Knowledge. The groups also want the FCC to conduct anonymous auctions -- where bidders wouldn't know whom they're bidding against. In the past, large wireless carriers have used transparent auctions to drive up prices on chunks of spectrum being bid on by small competitors, said Gregory Rose, an econometrician and game theorist working with open access proponents. In many cases, many larger carriers then dropped their bids after the smaller carriers were eliminated, he said. Some carriers have also engaged in retaliatory bidding against other companies that bid on spectrum they were interested in, he said. The retaliating bidder will bid on spectrum the second company is interested in, "as a signal to say, 'back off on the license I want, or I will drive the price of the license you want through the roof,'" Rose said. VerizonÂ and AT&T, two large broadband and wireless carriers, have declined to comment on the upcoming auctions. But some free-market think tanks and carrier trade groups have been vocal in opposing open access requirements for the spectrum auctions. Scott Cleland, chairman of advocacy group NetCompetition.org, questioned Frontline Wireless' open access goals in a blog post Thursday. Frontline "wants the FCC to auction spectrum to them requiring ... open access -- so effectively no company will be able/or want to pay much for the 700 MHz spectrum -- and so Frontline Wireless could capture this most valuable spectrum available at the market-managed price of pennies on the dollar," he wrote. But Frontline chairwoman Janice Obuchowski, speaking at Friday's forum, noted that the two largest wireless carriers are gobbling up market share, and without new auction rules, that will continue to happen after spectrum auctions. She called for the FCC to auction off the 700Mhz spectrum in small chunks that smaller companies can afford, breaking with Google's call for larger blocks to be auctioned. The goal of the auction should be for "true, robust competition" to emerge, she said.
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We won't know exactly what bidders plan to spend for a lucrative chunk of spectrum upon which to build new wireless services, but we do know who the bidders are. And at least for now, there are a few surprises.
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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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Internet service providers have to walk a fine line between fairness and profitability. Users want maximum service, and are entitled to honest contracts. Maybe there's a way to help everyone at once.
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(InfoWorld) - 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. FCC Chairman Kevin Martin's plan would require winners of part of theÂ 700MHz band of spectrum, to be auctioned by early next year, to accept any wireless devices, including phone handsets, allowing customers to transfer devices between mobile providers. Martin's plan would also include net neutrality-like rules, prohibiting auction winners from blocking or slowing Web content from other providers. But several members of the House of Representatives Subcommittee on Telecommunications and the Internet, many of them Republicans, questioned Martin's proposed rules, which have support of the majority of the FCC. Representative Joe Barton, a Texas Republican, said he was "very disappointed" that fellow Republican Martin was proposing regulations for part of the 60MHz of spectrum to be auctioned. Some proposals byÂ consumer groups and Frontline WirelessÂ would also require auction winners to provide wholesale access to competitors, and Barton praised Martin for not including that provision. "It's not quite as bad as the Frontline plan, but I don't think it's as good as absolute no-condition auction," Barton said. Many Republicans suggested that auction conditions would decrease the value of the spectrum. Congress has budgeted the auction to raise $10 billion with about half of that going toward reducing the U.S. government budget deficit. "Congress has already spent that money," said Representative Charles Gonzalez, a Texas Democrat. Questions about Martin's proposal came from a handful of Democrats. Representative John Dingell, a Michigan Democrat and chairman of the full House Energy and Commerce Committee, asked FCC commissioners whether the device-portability rules would increase the cost of wireless phone plans. Customers want to be able to take their mobile phones with them when they switch carriers, but carriers generally haven't offered that option, Martin said. "I think the benefits outweigh the costs and concerns," he said. Barton suggested that winning bidders could implement the device-portability and net neutrality proposals without FCC mandate. Google has indicatedÂ it could bid billions of dollars, Barton noted. "Why shouldn't we just let Google bid?" Barton said. "If they've got a better idea, why don't they go into the marketplace and bid their four or five billion dollars?" There's customer demand for device portability, but carriers haven't acted on it, Martin said. Wireless carriers didn't offer phone number portability until the FCC forced them to in late 2003, then millions of U.S. residents took advantage of it, he said. Asked whether they supported Martin's proposals, the FCC's two Democrats said they did, while the two other Republicans said they hadn't made their minds up yet. "Please let me keep my phone and let me take it wherever I want," said subcommittee chairman Ed Markey, a Massachusetts Democrat. The so-called open-access rules are necessary for new broadband competition to challenge cable and telecom providers, said FCC commissioner Michael Copps, a Democrat. The 700MHz auction is the last major spectrum auction on the horizon, many participants said. "This is one proceeding where we cannot fail," Copps said. Some lawmakers suggested Martin's proposal doesn't go far enough. Representative Charles "Chip" Pickering, a Mississippi Republican, called on the FCC to require wholesale access rules as well. Wholesale access would allow new and innovative services to flourish on the networks using the spectrum, he said. Martin's plan would "enhance markets and competition," he added.
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Here's a way to settle the debate over the use of the much-coveted 700 Mhz spectrum band: Why not build a single open network that supports multiple services on it, both commercial and for public safety? It can be done, but it would require some changes in thinking by the FCC and Internet operators, among others.
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The race to unveil amazing new gadgets sometimes turns ludicrous, but it could be worse. Much worse. Commentary by Lore Sj&#246;berg.
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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.
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The Bush administration is expected to press for speedier licensing of public airwaves for auction to private companies. But telecom regulators say wireless apps need unlicensed spectrum too. By Joanna Glasner.
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Allowing consumers to mix and match wireless gadgets and service providers could spark innovation--and compromise security.