dailywireless.org » FCC: Beltway Vs Valley

FCC: Beltway Vs Valley

Senator John Edwards sent a letter to the FCC yesterday urging commissioners to use the upcoming 700 megahertz auction to make the Internet more affordable and accessible, regardless of where people live or how much money they have.

Edwards is visiting California today to attend a town hall meeting with Google employees where he will discuss this issue among others.

Edwards backs the open-access approach advocated by Frontline Wireless, consumer groups and Internet giants. Edwards called on the FCC to set bidding and service rules for the upcoming auction to ensure that the public airwaves benefit everyone, not just big companies.

Edwards asked the FCC to:

Set aside as much as half of the spectrum for wholesalers who can lease access to smaller start-ups, which would improve service in rural and underserved areas.
Require anyone who wins rights to this valuable public resource not to discriminate among data and services and to allow any device to be attached to their service.
Make bidding anonymous to avoid collusion and retaliatory bids.

Edwards’ letter follows this month’s release of Al Gore’s new book, “The Assault on Reason”, notes the Washington Post. Gore voiced his opinion on net neutrality debate, which will decide whether Internet companies can charge for preferred access to content. Gore writes, “neutrality should be the central tenet that will set us on a path toward an open, democratic Internet where free speech and free markets are encouraged.”

Cyren Call, another startup pursuing a public-private national wireless solution, is against any licensing conditions that scares off major cellular companies — now auction partners of theirs.

The Federal Communications Commission, which meets today, tends to favor large cellular companies. It has allocated the 700 MHz spectrum using cellular-like paired channels, rather than the more cost/efficient single channel (COFDMA) approach favored by Mobile WiMAX. Mobile WiMAX proponents say their approach, using beam-forming, scalable subchannels and MIMO, can deliver more speed and range for one-tenth the cost.

But cellular companies have the money. The auctions are all about cash on the barrel head, not feel-good public policy with debatable outcomes.

Bush appointed commissioners (like Kevin Martin and Deborah Tate) may be tempted to follow NTIA chief Michael Gallagher (right) out the revolving door. Law firms like Wiley-Rein (below) and cellular lobby organizations would be a rewarding destination after their FCC tenure, with $1M/year salaries. Or more.

The 700MHz band is widely believed to be our best shot for creating U.S. competitiveness through broadband wireless. Will it be a new opportunity for the public or another revolving door compromise? Made with a wink and a nod.

Yes, it’s crass — but the potential for rule making that is self-serving is real.

In other news, Sprint Nextel has won part of the federal government’s $20 billion Networx Enterprise contract, this week. The GSA also awarded part of the contract to AT&T, Level 3, MCI and Qwest to provide voice, Internet and wireless services to 135 federal agencies. None of the companies will receive a specified portion of the $20 billion contract but only the eligibility to compete for government services specified under the contract.

In March, the GSA snubbed Sprint for rivals AT&T, Verizon and Qwest. In a related contract, General Dynamics and Verizon won the $10B Integrated Wireless Network contract (below).

That contract will allow Verizon to install thousands of 700 MHz radio towers in every community in the United States. That contract may enable Verizon to leverage their government subsidy (though IWN), and expand into commercial 700 MHz services in rural areas.

Verizon would like to kill upstart competitors like Google and Frontline, and get RUS funding to do it. The FCC may help them do just that. Google, Frontline and other upstarts plan faster, cheaper “open” architecture with public/private partnerships and a “net neutral” approach to content rather than a “walled garden”. It could be a “cleaner” deal — nobody owes anybody anything.

It’s basic public policy. You don’t have to be a wonk to get it.

Which way will FCC commissioners go? Will we get a truly competitive greenfield or will cellular monopolies be allowed to dominate the 700 MHz space?

We should know soon enough.