Spectrum Auction: Who’s Looking Out for You?

From Washington, there’s news that the Federal Communications Commission has embraced draft rules regarding its upcoming auction of radio spectrum which could favor new entrants – and, presumably, more innovation – in the wireless market.

The Wall Street Journal reports that the FCC’s draft rules would set aside part of the available spectrum for creation of an "open" network free of the constraints that large telecom operators like AT&T Inc. and Verizon Communications Inc. normally impose. The spectrum being auctioned is estimated to bring in $15 billion to the Treasury. The new open-access rules would apply to a slice that is big enough to create a nationwide network.

An “open” network would create opportunities for new entrants – most notably, a company of the size and ambition of Google. And while Google maintains that its lobbying efforts on behalf of the open access proposals are in the public good, it recently acknowledged that it has a vested interest in the auction.

On its public policy blog, Google says:
“Late yesterday, we filed a letter urging the FCC to take concrete steps to make sure that regardless of who wins the spectrum at auction, consumers’ interests are best served. We believe that the winning bidders should be required to adhere to enforceable rules that require the adoption of four types of "open" platforms:

  • Open applications: consumers should be able to download and utilize any software applications, content, or services they desire;
  • Open devices: consumers should be able to utilize a handheld communications device with whatever wireless network they prefer;
  • Open services: third parties (resellers) should be able to acquire wireless services from a 700 MHz licensee on a wholesale basis, based on reasonably nondiscriminatory commercial terms; and
  • Open networks: third parties (like internet service providers) should be able to interconnect at a technically feasible point in a 700 MHz licensee's wireless network.

Google says it’s “most encouraged” by news of the FCC’s draft rules, but it cautions: “We’ll need to see the fine print.”

For more: “Google Weighs in on Wireless Open Access Debate” (Information Week)