3 edits | Good News: rules will have anonymous bidding »www.fcc.gov/073107/700mhz_news_r···3107.pdf
In the upcoming 700 MHz auction, the FCC will use “anonymous” bidding procedures, in which any information that may indicate specific applicants’ interests in the auction, including their license selections and bidding activity, is withheld until after the close of the auction. These procedures will be used irrespective of any pre-auction measurement of likely competition in the auction. This helps preclude gaming the system by the large telcos like they did on the last auction. This rule was pushed for hard by public interest groups.
Also there will be buildout requirements:
New, more stringent performance requirements were adopted for commercial licenses that have not yet been auctioned in order to promote better access to spectrum and the provision of service, especially in rural areas.
• For licenses based on CMAs and EAs, licensees are required to provide service sufficient to cover at least 35 percent of the geographic area of their license within four years, and 70 percent of this area by the end of the license term.
• For licenses based on REAGs, licensees must provide service sufficient to cover at least 40 percent of the population of their license area within four years, and 75 percent of the population of the license area by the end of the license term.
• If licensees fail to meet the four-year, interim geographic or population benchmark, the license term will be reduced from ten to eight years, thus requiring these licensees to meet the end-of-term benchmark at an accelerated schedule. Interim reporting requirements have also been adopted to ensure that build out is timely.
• If licensees fail to meet the end-of-term buildout requirements, the FCC will automatically reclaim the unserved portions of the license area and make them available to other potential users. --
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1 edit | from what I have read anonymous bidding is a good thing, but not a panacea for the problems of no competition.
build out requirements won't stop the incumbents from playing games - it looks like they can tie up the spectrum for 10 years to keep competitors from using it. And even then, they could decide to take it to court and tie it up for even longer.
yes indeed, broadband consumers are well and truly screwed for the next ten years. I hope I'm wrong, but I doubt it. |
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The licensees of the Upper 700 MHz Band C Block of spectrum will be required to provide a platform that is more open to devices and applications. This would allow consumers to use the handset of their choice and download and use the applications of their choice in this spectrum block, subject to certain reasonable network management conditions that allow the licensee to protect the network from harm.
Considering Verizon and others dont allow most 3rd party apps to their current network because "they may harm the network" I guess thats the loophole provided to insure that no future third party apps make it in.
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 MrMoodyFree range slavePremium
join:2002-09-03
Smithfield, NC | reply to fAcEtIOUs
Buildout Carefully read the buildout requirements. The only penalty for failing to build out is to lose the areas they didn't build out to (i.e. didn't want) in 8-10 years. Besides which, hitting 35-40% of the population is insanely easy with a few big cities which will let them keep the entire country locked up for 10 years, and 70-75% isn't greatly difficult either. So much for any rural service, it ain't happening, in fact there is now additional incentive to do the opposite. |
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bi0tech
join:2003-06-19
Cockeysville, MD Reviews:
 ·Comcast
·Verizon FiOS
| reply to hitman_001
Re: Good News: rules will have anonymous bidding Exactly. I can't find any more detailed wording on the final proposals anywhere, but the press release version was a joke on wheels. There is nothing in the wording that prevents the status quo, except you should be able to move between carriers with the same device and expect some level of service. I didn't even see anything that dictates a minimum level of compatibility.
The FCC claiming a win for device portability in an area where said devices are some of the most disposable and rapidly evolving consumer items makes no sense.
Current GSM networks would likely already fall within these guidelines. So good to see more government agencies with an eye on the past claiming it as the future. |
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bi0tech
join:2003-06-19
Cockeysville, MD Reviews:
·Comcast
·Verizon FiOS
| reply to MrMoody
Re: Buildout Performance Requirements for Commercial Spectrum
New, more stringent performance requirements were adopted for commercial licenses that have not yet been auctioned in order to promote better access to spectrum and the provision of service, especially in rural areas.
For licenses based on CMAs and EAs, licensees are required to provide service sufficient to cover at least 35 percent of the geographic area of their license within four years, and 70 percent of this area by the end of the license term.
For licenses based on REAGs, licensees must provide service sufficient to cover at least 40 percent of the population of their license area within four years, and 75 percent of the population of the license area by the end of the license term.
If licensees fail to meet the four-year, interim geographic or population benchmark, the license term will be reduced from ten to eight years, thus requiring these licensees to meet the end-of-term benchmark at an accelerated schedule. Interim reporting requirements have also been adopted to ensure that build out is timely.
If licensees fail to meet the end-of-term buildout requirements, the FCC will automatically reclaim the unserved portions of the license area and make them
available to other potential users.
So by that text, if auction winners are extremely lazy and do absolutely nothing with this spectrum at all, they can still lock it up for 8 years.
Nice. |
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 KrKHeavy Artillery For The Little GuyPremium
join:2000-01-17
Tulsa, OK
 ·AT&T DSL Service
| reply to MrMoody
Exactly. Big whoop in 10 years they forfeit the rural areas they didn't want to serve anyway. Ouch. What a penalty. NOT.
These auction rules pretty much guarantee the status quo will continue and that there will be no competitor to Telco/Cable, and that rural areas will have the exact same options in 10 years they have now.... which is, pretty much, really slow dial-up or really expensive and still pretty sucky Satellite.
The 700 mhz frequencies and the dream for a third broadband system of fast wireless dies...
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MrMoodyFree range slavePremium
join:2002-09-03
Smithfield, NC | Here's another question: does mobile phone service qualify as buildout?
Here's my prediction of what will happen with this band: It'll be just another digital mobile phone band with better range and building penetration. Medium speed, severely restricted internet will be available on it in cities, just like now.
In fact it'll be exactly the same as now except you'll be able to get service on devices you didn't buy from them, but even this will be a rip off because they control the service. Buy the phone from us, hey we'll give you a deal, free activation and $50/month with contract. Approved third party devices, $200 activation and $75/month, and still a contract. Plus add-on charges for internet etc.
Waste all that high-profit bandwidth on broadband? Don't make them laugh. This is going to be a huge cash cow, just like the current cell services, and they know it. |
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