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FCC Auction Rules As Expected
Some Carterfone principles, not much else...

The FCC has settled on 700Mhz spectrum auction rules, and the results are exactly as we expected (pdf press release). The FCC has included at least some marginal "open access" provisions to a third of the spectrum -- meaning whoever buys it will have to allow users to attach to the built network with whatever device they'd like, and use whatever service they'd like.

This assumes there aren't loopholes, and we assume there are -- given AT&T and Verizon's enthusiasm to sign off on Martin's plan when it was first leaked last week.

I'm concerned we missed an opportunity to provide an elusive third broadband channel into the home.
-FCC Commissioner Jonathan Adelstein
Progressive provisions pushed for by Google and consumer advocates aimed at breaking the incumbent stranglehold on the wireless broadband market were nixed. "I'm concerned we missed an opportunity to provide an elusive third broadband channel into the home." FCC Commissioner Jonathan Adelstein said in a statement (pdf).

Yeah, whoops.

The Commissioners (including Adelstein) voted 4-1 in favor of Martin's proposal, with the only objection coming from Commissioner Robert McDowell, who just last week penned a piece in the Wall Street Journal stating that there is no broadband problem to fix. The question now becomes: with Google only getting part of what they wanted, do they bid on spectrum anyway?
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qworster
join:2001-11-25
Bryn Mawr, PA

2 edits

1 recommendation

qworster

Member

This surprises you?

The FCC BENDS OVER for big $$. Period!

They could give two sh**s about the "public interest" any more. Odd, especially when you consider the public interest is why they exist!

The FCC is part of the Executive Branch and as such is directly run by Dick Cheney. Knowing what a crook HE is, this shouldn't surprise anyone.

I love this part:

"I'm concerned we missed an opportunity to provide an elusive third broadband channel into the home," FCC Commissioner Jonathan Adelstein said in a statement.

Then why did you VOTE for it, IDIOT???!!!

Karl Bode
News Guy
join:2000-03-02

1 recommendation

Karl Bode

News Guy

Re: This surprises you?

quote:
While this item does not deliver everything consumers and innovators wanted, or many of the improvements I suggested, our decision today represents an important step, if a modest one, in the right direction. We can be proud to say we are offering consumers a new paradigm they have longed for and certainly deserve.
Apparently letting consumers actually access this unbuilt network with their laptop is a "new paradigm."

KarlworksforBBR

Anon

Re: This surprises you?

Apparently Karl works for Broadband Reports which supports the interests of the incumbent Broadband Providers. Enough said.


Karl Bode
News Guy
join:2000-03-02

1 recommendation

Karl Bode

News Guy

Re: This surprises you?

Yeah. Good eye.
nasadude
join:2001-10-05
Rockville, MD

nasadude

Member

uh oh, we scrooged

there goes the last chance for broadband competition in the U.S.

I like the way the article headline spins this: FCC embraces open access. Just enough to not be worth much (if anything), but gives the anti-consumers something to point to about how great this will be for consumers.

only hope now is if google has a surprise and is willing to bid huge $$$$ for spectrum - remember, they have to overcome the telco anti-competition premium (value to incumbents of locking out competition that is over and above the inherent spectrum value).
jlsjrf29
join:2002-05-12
San Jose, CA

jlsjrf29

Member

Google dont bid

If you cant get full open access then I wouldnt bid on it thats just my 2 cents.
nasadude
join:2001-10-05
Rockville, MD

nasadude

Member

Re: Google dont bid

actually, I'm hoping nobody will bid except the incumbents and the auction falls far short of its revenue goals. Not that this will result in anything different happening, but at least we could say "nanny nanny boo boo".

google might bid on the 22Mhz set aside for open access, but I don't know useful it is. Not sure if the incumbents will bid on this or not with the open access. My guess is if they do bid on it and win, they will either do nothing with it or just ignore the open access rules.
pcnetworx1
join:2005-09-21
Bethel Park, PA

1 recommendation

pcnetworx1

Member

Google + Microsoft + Apple bid team?

Hey, that would be interesting, my enemy's enemy is my friend kind of deal

Oh wait, nix Apple, they work with ATT...

(yes, I'm talking jokingly with this idea)
bmn
? ? ?

join:2001-03-15
hiatus

3 edits

1 recommendation

bmn

Just goes to show...

The FCC operates on behalf of big business, not the people who they are suppose to be working for.

The weakened rules are definitely going to be a boon for whatever company grabs the spectrum up for auction, but one thing is clear, the consumers of America lost again. The likely outcome now is that some well established player, probably Verizon or ATT, will grab the spectrum and we'll be left with the same players as before and no innovative new services. After all, neither of them have said anything about actually doing anything with it.

You want that cool, ubiquitous, high-speed wireless data access like they have in Star Trek and all those Sci-Fi movies? Not bloody likely in America now. One can only hope tomorrow looks better.

edit:typos

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

2 edits

FFH5

Premium Member

Some FCC links shown below for this decision

The news release in Adobe Acrobat(PDF) format:
»www.fcc.gov/073107/700mh ··· 3107.pdf

Commissioner Copps' statement in Adobe Acrobat(PDF) format:
»www.fcc.gov/073107/copps ··· 3107.pdf

Commissioner Adelstein's statement in Adobe Acrobat(PDF) format:
»www.fcc.gov/073107/adels ··· 3107.pdf

Commissioner McDowell's Statement in Adobe Acrobat(PDF) format:
»www.fcc.gov/073107/mcdow ··· 3107.pdf

Commissioner Martin's Statement in Adobe Acrobat(PDF) format:
»www.fcc.gov/073107/marti ··· 3107.pdf

Commissioner Tate's Statement in Adobe Acrobat(PDF) format:
»www.fcc.gov/073107/tate_ ··· 3107.pdf
FFH5

3 edits

FFH5

Premium Member

Good News: rules will have anonymous bidding

»www.fcc.gov/073107/700mh ··· 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.
nasadude
join:2001-10-05
Rockville, MD

1 edit

nasadude

Member

Re: Good News: rules will have anonymous bidding

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.

hitman_001
Premium Member
join:2006-11-20
Laredo, TX

1 recommendation

hitman_001

Premium Member

Re: Good News: rules will have anonymous bidding

quote:
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.
bi0tech
join:2003-06-19
Cockeysville, MD

bi0tech

Member

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.

MrMoody
Free range slave
Premium Member
join:2002-09-03
Smithfield, NC
Netgear CM500
Asus RT-AC68

MrMoody to FFH5

Premium Member

to FFH5

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
Cockeysville, MD

bi0tech

Member

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.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
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KrK to MrMoody

Premium Member

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...

MrMoody
Free range slave
Premium Member
join:2002-09-03
Smithfield, NC
Netgear CM500
Asus RT-AC68

MrMoody

Premium Member

Re: Buildout

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.

SRFireside
join:2001-01-19
Houston, TX

1 recommendation

SRFireside

Member

Correct me if I'm wrong...

...but if Google does bid for the spectrum and wins won't it be there prerogative whether or not to hold true to their demands? I mean the FCC can't force them not to offer open access and all that, can they?

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
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KrK

Premium Member

Re: Correct me if I'm wrong...

said by SRFireside:

...but if Google does bid for the spectrum and wins won't it be there prerogative whether or not to hold true to their demands? I mean the FCC can't force them not to offer open access and all that, can they?
Under the rules of this auction, nobody will be required to allow open access to their network.

Note: Required. If the winner of the auction, chose to do so, that's their prerogative.

Karl Bode
News Guy
join:2000-03-02

1 recommendation

Karl Bode to SRFireside

News Guy

to SRFireside
quote:
...but if Google does bid for the spectrum and wins won't it be there prerogative whether or not to hold true to their demands? I mean the FCC can't force them not to offer open access and all that, can they?
Correct. Google here is simply protecting their ad territory with a political play. They wanted guidelines imposed so when the incumbents win the spectrum, they'd have to make sure Google ads got through via GoogleTalk and whatever else...

I doubt they actually bid on the spectrum, and if they do maybe it will be in joint fashion with Sprint or someone.

packetscan
Premium Member
join:2004-10-19
Bridgeport, CT

packetscan

Premium Member

Weeee

Again the Consumer is RAILED.

Don't fool yourself.

Lobbyists are to Washington as concierge is to a high roller in a hotel.
Your wish is their command-
Eric Martin
join:2005-06-19
66308

1 recommendation

Eric Martin

Member

This whole thing stinks to high hell

Because no one in the media(Time,newsweek,localpaper) gives a s**t , nothing will be done.

Cell phone, broadband will always be in $20-30 a month range with nickel&diming for every stupid feature.

There needs to be a peaceful guerilla campaign to JAM cellphone networks and radio freq.

Those airwaves belong to the people.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
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KrK

Premium Member

Re: This whole thing stinks to high hell

said by Eric Martin:

Because no one in the media(Time,newsweek,localpaper) gives a s**t , nothing will be done.
The media these days is 100% beholden, spoken for, and owned by big Corporate interests. They no longer represent the checks and balances we need. They merely give lip service to it while focusing on things like what Paris Hilton is up to today or where Tom Cruise is at, as well as stories of personal misery (everyones favorite, but it doesn't improve jack on the national level.)
betam4x
join:2002-10-12
Nashville, TN

betam4x

Member

Dear Google

For the LOVE OF CHRIST PLEASE Bid on this spectrum. (AND WIN)

I am sick and tired of insanely large telecom companies destroying the free internet.
jimbo21503
join:2004-05-10
Euclid, OH

1 recommendation

jimbo21503

Member

A dark day..

This is a dark day in U.S. telecommunications history. Pity.

TScheisskopf
World News Trust
join:2005-02-13
Belvidere, NJ

TScheisskopf

Member

Re: A dark day..

As long as Kevin Martin is at the helm of the FCC, every day is a dark day in the history of telecommunications. He is just lining up a high-paying job at one of the incumbents, for when he steps down.

Karl Bode
News Guy
join:2000-03-02

Karl Bode

News Guy

Re: A dark day..

Actually I think I read his eye is on Senator. Of course yes, should that fail I'm sure he'll find easy employment in any of a number of telecom-funded think tanks who argue regulation causes cancer in kittens.

TScheisskopf
World News Trust
join:2005-02-13
Belvidere, NJ

TScheisskopf

Member

Re: A dark day..

Frankly, the only telecom job he should have is as the bell boy who shouts "Call for Phillip Morris!".

That would suit his level of knowledge and expertise to a tee.

Karl Bode
News Guy
join:2000-03-02

Karl Bode

News Guy

Re: A dark day..

I'd really like to start seeing some people at the FCC whose devotion is to the technology, not political and donor loyalty. Though I suppose I might as well as for an extra three decades of life for all the good that does....

TScheisskopf
World News Trust
join:2005-02-13
Belvidere, NJ

TScheisskopf

Member

Re: A dark day..

That'll happen once I am 6'4" tall, buffed, independently wealthy and 12" swinging, driving a Ferrari Enzo.

or sometime after 2009. Whichever comes first.

compaqdwarf
@ameritech.net

compaqdwarf

Anon

Lobby Money

Google talked the big game but didnt put up the lobby money
They would need Microsoft, Yahoo, and the Cablco mafia on their side to go up against the telco lobby

Ream0
@rr.com

Ream0

Anon

SOLD!

....To the guy wearing the mask standing behind curtain number 2!
wispagod
join:2001-06-28
House Springs, MO

wispagod

Member

Ok, Clairification please!?

So, fo r example, they are bidding on a sole owner of 700mhz, like sating all the 2.4ghz would belong to Verizion, and only them (i know it;s not) they wanna make 700mhz like that instead of open like the 900mhz, where anyone can but anything on it? I can see them doing that cause the TV Stations had to own there part, so should any company, the point goes to whom is allowed to buy it.

Did i get this right?
bi0tech
join:2003-06-19
Cockeysville, MD

bi0tech

Member

Re: Ok, Clairification please!?

The 700mhz is is licensed block spectrum not an open unregulated band like 900mhz. As such you must purchase the license to blocks of frequencies within that band over geographic boundaries.

There is no 'sole owner', but there is a limited amount of spectrum. So anyone wishing to offer service in that band over a particular area would need a block of spectrum wide enough to carry the service they propose to offer. The current setup is to auction 62 mhz divided into 5 contiguous blocks.

(Previously common referred to minimums of around 20-30 mhz are needed to provide reliable coverage over a metro area. Exactly how much would be needed on this spectrum for a 'broadband' type delivery system I haven't seen any hard data on.)
ricep5
Premium Member
join:2000-08-07
Jacksonville, FL

ricep5

Premium Member

Towers are everywhere already

I hate to sound sarcastic on all of this spectrum stuff...but just think, there are towers throughout the US with 700Mhz optimized high power antenna arrays. What do you think the TV broadcasters are going to do with that old infrastructure?

Spend the money to have them removed after 2009, or lease it back?

Supports up to 50kW, 30 mile range and already mounted and cabled.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK

Premium Member

Re: Towers are everywhere already

If the incumbents win the license, I expect that equipment to sit there and corrode.

Mercurybird
Premium Member
join:2004-06-24
Hooks, TX

Mercurybird

Premium Member

Don't be so narrow minded...

Remeber the guys who said the internet would never amount to anything... or how about this one- 640K should be enough for anything, or anyone, or some such...

Listen, every little step forward is a giant leap. Our country was built the same way. Just like every other incredible new technology, there isn't a force in the universe that can hold this back.

Greed slows it down, not to mention the thirst for power. But grab something and hold on because the future is almost here.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
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KrK

Premium Member

Re: Don't be so narrow minded...

said by Mercurybird:

Greed slows it down, not to mention the thirst for power. But grab something and hold on because the future is almost here.
Heh. I still remember the "Future" where they talked about everyone having 14 hours of leisure time a day thanks to modern technology, oh, and, let's not forget the flying cars

plk
Premium Member
join:2002-04-20
united state

plk

Premium Member

Federal civil suit and injunction

I'm just wondering if we (yes, you and I) can file a civil suit and injunction against this.
I think we can count on the nearly 30k signatures who sent letters to the FCC. Nice witness list!

Anyway, I have no idea if we could win but we could tie the sale up long enough to get our current administration out of office.
stufried
Premium Member
join:2003-10-13

stufried

Premium Member

Open Access

Don't you partially have open access on GSM? I buy my phones where I want and insert their SIM cards and the phone works?

KrK
Heavy Artillery For The Little Guy
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KrK

Premium Member

Re: Open Access

said by stufried:

Don't you partially have open access on GSM? I buy my phones where I want and insert their SIM cards and the phone works?
In most of the REST OF THE WORLD, yes.
stufried
Premium Member
join:2003-10-13

stufried

Premium Member

Re: Open Access

I do it in the US. Most of my phones have been provider independent. I just bought an 8525 from Cingular and regret it. I'm fighting to get it unlocked and will then have to work to debrand it. It wasn't worth the savings or contract extension. Nokia, however, has been launching stores with unlocked phones, Compusa sells them, Costco and Tiger Direct have them available on the web. These aren't small grey marketers.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK

Premium Member

Pray for a White Knight

.... someone, anyone, with vision and money.

Please.... please.... please....
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