Open-Access Rule Triggered by FCC Spectrum Bid

http://www.pcmag.com/article2/0,2817,2254770,00.asp

Open-Access Rule Triggered by FCC Spectrum Bid
01.31.08
By Chloe Albanesius

A portion of the 700-MHz spectrum currently up for auction by the FCC is guaranteed to have open-access requirements now that bidding has surpassed a $4.6 billion reserve price.

Bidding on a package of licenses that cover all 50 states in the so-called C-block reached $4.7 billion Thursday. Last year the FCC agreed to designate the 22-MHz upper C-block as one that would be open to devices and applications, provided those licenses attracted at least $4.6 billion in bids.


Driving this call for open access was Google, which argued in July that wireless spectrum for mobile phones and data in the U.S. was controlled by a small group of companies, leaving very few choices for consumers, and should include open access requirements.

The search engine later pledged to spend at least $4.6 billion on the spectrum auction if the FCC agreed to open applications, devices, services and networks. The FCC allowed open access but denied Google's request for a wholesale approach. Nonetheless, Google applied to participate in the auction and was granted permission to bid under the name Google Airwaves.

At issue is a portion of spectrum in the 700-MHz band that will become available once television broadcasters shift from analog to digital signals in early 2009. On January 24, the FCC started auctioning off access to that spectrum to a group of 214 approved bidders. The commission will continue to hold bidding rounds, conducted by phone and via Internet bids, until there is a round in which no bids are placed. The most recent round drew 913 bids, so the auction could continue for weeks.

Media reports speculated that bidding in the C-block was finished now that the reserve price had been met, but the FCC said that bidders could still conceivably bid on the C-block in future rounds. No bids were placed on the 50-state C-block package in the last three rounds, and anyone who wishes to place a bid must now pledge at least $5.2 billion, according to the FCC auction Web site.

Though FCC rules prohibit the commission from revealing who is actually bidding on what licenses until the auction is complete, it is widely believed that Google is among those currently competing for the C-block. Another possible bidder on the C-block is Verizon Wireless. It will not be clear until the auction concludes, however, whether Google has slowly been inching toward the $4.6 billion reserve price by itself or if Google and Verizon have been battling it out for the past week.

Another license to watch is the D-block, which will be used for public safety use should it reach a reserve price of $1.3 billion. It has thus far only received one bid worth $472 million, however.