Verizon Wireless Sues FCC Over Spectrum Auction Rules
In a filing today (September 13) with the U.S. Court of Appeals for the District of Columbia, Verizon Wireless challenged the Federal Communications Commission's rules for the 700 MHZ spectrum auction mandating a network open to all legal devices and software.
The spectrum auction, scheduled to begin January 16, is expected to raise at least $10 billion for the government from airwaves being returned by television broadcasters as they move to digital from analog signals in early 2009.
The auction has has been the subject of intense jockeying for position between established wireless carriers and a group of high-tech companies, most notably Google and eBay's Skype internet phone unit.
In July, the FCC said bidders for whoever buys 22 megahertz of the 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."
In today's filing, Verizon Wireless said the rules are "arbitrary and capricious, unsupported by substantial evidence and otherwise contrary to law."
Google fired back with a posting on its public policy blog, saying:
"The nation's spectrum airwaves are not the birthright of any one company. They are a unique and valuable public resource that belong to all Americans. The FCC's auction rules are designed to allow U.S. consumers -- for the first time -- to use their handsets with any network they desire, and download and use the lawful software applications of their choice.
It's regrettable that Verizon has decided to use the court system to try to prevent consumers from having any choice of innovative services. Once again, it is American consumers who lose from these tactics."
The Wall Street Journal reported that legal challenges to FCC rules, like the kind Verizon is filing, are rarely successful. "I don't know what basis one would have for launching a challenge of this matter," said Philip Verveer, a communications lawyer with the Washington, D.C., office of Wilkie Farr & Gallagher.
Verizon Wireless is a joint venture of Verizon Inc. and the U.K.'s Vodafone PLC.
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Shareholders of AT&T Inc. have filed a proposal calling for the company “to publicly commit to operate its wireless broadband network consistent with network neutrality principles” that would maintain open access to the Internet on wireless networks.
The filing comes only weeks before implementation of new Federal Communications Commission rules on network neutrality that provide a broad exemption for wireless broadband networks – the fastest growing segment of the Internet.
Here's the complete text of a proposal introduced by AT&T shareholders for consideration at the company's annual meeting in April 2012.
The senators advocate for a shareholder opportunity to "tell corporate boards that net neutrality is an important issue and telecommunications companies should ensure equal, nondiscriminatory access to all content on their networks."