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MrMoody
But the Grinch ... did Not.
join:2002-09-03
Smithfield, NC
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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. | |
bi0tech
join:2003-06-19
| 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. | |
KrK
Heavy Artillery For The Little Guy
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join:2000-01-17
Tulsa, OK
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| 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...
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) | |
MrMoody
But the Grinch ... did Not.
join:2002-09-03
Smithfield, NC
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| 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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