• SIP
Broadband & Mobile Featured Article
September 26, 2007
Frontline Protests FCC Spectrum Auction
By Tim Gray TMCnet Web Editor
While several big time telecom players have already questioned the spectrum auction rules created by the U.S. Federal Communications Commission, Frontline Wireless is now the first to argue the auction of the 700MHz band is going to shut out the little guy.
Now, the wireless start-up e, along with AT&T (News - Alert) and others, has filed a petition asking the FCC to reconsider several aspects of the public airwaves auction scheduled for January.
Frontline wants the FCC (News - Alert) to change the bidding rules to block incumbent operators from building up what it calls an “excessive concentration in spectrum holdings,” according to the petition.. Frontline also wants smaller operators to be allowed to employ a wholesale business model on the 700MHz network, which will be used to offer both commercial and public safety services, and has called for the minimum bid level to be lowered.
“Spectrum is a necessary natural asset, not an earned advantage, and the Commission’s public interest duty and precedent require it to ensure that any accumulation of spectrum – whether on Wall Street or at auction – comports with the public interest,” the company said the petition released on its Web site.
Among the decisions Frontline is seeking to change is the rule precluding bidding credit eligibility for small business wholesalers, because “wholesaling is the only realistic way for new entrants to participate in the broadband wireless industry.”
“Given that the Commission’s desired paradigm for the 700 MHz spectrum is competition, not consolidation, obliging new entrant small businesses to copy the current incumbents’ business model serves no rational purpose. The Commission should not tilt for or against certain business models,” the petition said.
Frontline has also asked the FCC to use existing tools to address excessive wireless and broadband concentration by denying long-form applications if a grant to a high bidder incumbent would result in excessive concentration in spectrum holdings; relying on actions under anti-trust laws.
In an effort to hold more sway among the commission, Frontline in June added former FCC Chairman Mark Fowler to its board of directors.
In all, 10 companies filed petitions with the FCC. AT&T. has asked the commission 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 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, however most industry insiders believe the price could more than double that.
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.
Tim Gray is a Web Editor for TMCnet, covering news in the IP
communications, call center and customer relationship management industries. To see more of his articles, please visit Tim Gray’s columnist page.
Now, the wireless start-up e, along with AT&T (News - Alert) and others, has filed a petition asking the FCC to reconsider several aspects of the public airwaves auction scheduled for January.
Frontline wants the FCC (News - Alert) to change the bidding rules to block incumbent operators from building up what it calls an “excessive concentration in spectrum holdings,” according to the petition.. Frontline also wants smaller operators to be allowed to employ a wholesale business model on the 700MHz network, which will be used to offer both commercial and public safety services, and has called for the minimum bid level to be lowered.
“Spectrum is a necessary natural asset, not an earned advantage, and the Commission’s public interest duty and precedent require it to ensure that any accumulation of spectrum – whether on Wall Street or at auction – comports with the public interest,” the company said the petition released on its Web site.
Among the decisions Frontline is seeking to change is the rule precluding bidding credit eligibility for small business wholesalers, because “wholesaling is the only realistic way for new entrants to participate in the broadband wireless industry.”
“Given that the Commission’s desired paradigm for the 700 MHz spectrum is competition, not consolidation, obliging new entrant small businesses to copy the current incumbents’ business model serves no rational purpose. The Commission should not tilt for or against certain business models,” the petition said.
Frontline has also asked the FCC to use existing tools to address excessive wireless and broadband concentration by denying long-form applications if a grant to a high bidder incumbent would result in excessive concentration in spectrum holdings; relying on actions under anti-trust laws.
In an effort to hold more sway among the commission, Frontline in June added former FCC Chairman Mark Fowler to its board of directors.
In all, 10 companies filed petitions with the FCC. AT&T. has asked the commission 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 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, however most industry insiders believe the price could more than double that.
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.
Tim Gray is a Web Editor for TMCnet, covering news in the IP
communications, call center and customer relationship management industries. To see more of his articles, please visit Tim Gray’s columnist page.
