And we would especially like to welcome all the representatives of Illinois’s law enforcement community that have chosen to join us here in the Palace Hotel Ballroom. — Blues Brothers
AT&T, perhaps unsurprisingly, said it was not in favor offering “open access” in the upcoming 700 MHz bands. At the Reuters Global Telecoms Summit, John Stankey (right), AT&T’s group president of operations support, said it would be bad public policy to preclude certain parties [read cellular operators] from participating in the auction.
The FCC has asked the public for comment on a number of proposals that could shape the bidding process. Some proposals favor wireless incumbents like AT&T and Verizon, while others favor the smaller players with “open” access, such as plans proposed by Frontier Communications and a coalition of Google, Yahoo, Intel and others.
“There is some debate whether there should be some parties precluded from participating in that auction, which we think would be a really, really poor public policy decision,” Stankey said.
Before the auction can start, the FCC must provide a set of rules on how the spectrum will be divided and what services can be offered. The FCC optimized the new AWS band (1.7/2.1 GHz) for cell carriers, strengthening their dominant position.
The 700 MHz band, with close to three times the range (but half the capacity), is a different animal. It is “beachfront property” and ideally positioned for rural users (and billions in RUS subsidies). But, with a relatively low cost of entry, cellular operators may have to grossly overpay to keep “open access” competitors out. The AWS auction shows that large incumbent carriers were able to control the outcome of the auction,” said Jeannine Kenney, senior policy analyst at Consumers Union.
Michael Gallagher (right), a former National Telecommunications and Information Administration director who cleared the spectrum for the AWS band, is now in private practice and represents Verizon, Qwest and other wireless companies. Last week he told a House telecommunications subcommittee that anything short of a “straightforward, transparent auction” would cause far-reaching negative consequences.
FCC boss Kevin Martin appears to be siding with consumers!
Maybe it’s just a misunderstanding.
Last week Cyren Call officials visited the FCC and suggested a proposal similar to Frontline’s plan, but with a twist. Cyren Call would let large cellcos like Verizon and AT&T participate in the auction with them for (just) 10 MHz of shared commercial/public service spectrum. Cyren Call was unsuccessful at persuading policymakers to designate half of the 700 spectrum up for auction (30 of the 60 megahertz) for shared commercial/public-safety broadband.
Frontline rejected Cyren Call’s view that first responders should join forces with cellular carriers. Meanwhile Frontline Wireless, adding only 10 MHz and more in line with FCC policy, is winning support from many first responders because of its “open” policy (pdf), allowing a much larger choice of end-user devices and applications.
Related DailyWireless articles include Rural Broadband Gets A Plan, FCC Indecisive on 700MHz, Harold Feld on 700MHz, Martin: Sharing is Good, Congressional Fix for Universal Service?, Consumers to FCC: 700MHz Democracy Now!, Small Ops Squeezed Out of 700MHz?, General Dynamics Wins IWN Contract, Verizon Makes its Move for Universal Service Fund, Rural Broadband Dying and FCC to Rural Users: 700MHz is the Ticket.
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