FCC Sets Rules For Auction

July 31, 2007 | 5 Comments

I just spent another 24 hours in DC. This time I was invited to speak at the FCC meeting this morning where the rules were announced for the 700 MHz auction. CNet published this article in advance.

First of all, the FCC went farther than any of us could have imagined six months ago. One third of the spectrum allocated for commercial services in this auction will be subject to Carterfone or “open device” rules: consumers will be able to attach any device to the network, and to run any application on that device, provided neither the device nor the software harms the network.

This means that big handset firms and brand new startups will be able to design and launch dozens of new wireless devices, knowing that they only have to convince the end customer that their device is a good idea - they won’t have to convince a carrier first. It may take five years or more to build the new network, but this decision is great news for consumers and small businesses.

But the FCC did not go as far as some of us had hoped. The auction winners will not be required to open up the network itself by selling capacity wholesale. It is now very likely that one of the existing carriers will win the auction, since they can afford to bid more than any new entrant. For the most part, it will be business as usual.

So is this a victory for Google or a defeat for Google? Personally I don’t care. Google is as much a threat to our new business as the telcos are. But provided that the carriers can’t wriggle out of the open device rules, I believe that today’s decision is a victory for all of us.

Author’s Photo Posted by: Jason
Categories: Public Policy

Comments

5 Responses to “FCC Sets Rules For Auction”

  • LAgrl on July 31st, 2007 8:29 pm

    The meeting was heart pumping and breathe stopping. What an environment! I watched it on Channel 69.

  • hornswaggled on August 1st, 2007 1:56 am

    I am watching this on cspan right now. You did a great job and really explained the lack of progress well.

    Hopefully things will improve but something tells me otherwise.

  • David J on August 1st, 2007 6:49 am

    Does it “harm the network” if I send instant messages over it? Certainly by depriving the network of needed text-messaging revenue I am harming it?

    I suppose 3rd-party devices will keep an accounting of what network services they are using, so that users can compare their device’s side of the story to the network’s.

    Fine work Jason.

  • Bruce Cooper on August 1st, 2007 1:25 pm

    Jason:

    Admirable job in the testimony. I believe that the FCC still doesn’t get it. We were looking for small business credits in the bidding process. We felt that might “level the playing field”. We shall see where it goes. For those of us who deliver “last mile” and do so in large geographic chunks instead of “cherry picking” communities, we feel as though the direction the FCC is taking is counter to a real competitive environment and is doing little to advance the march of broadband into the rural community.

  • Bruce Cooper on August 1st, 2007 1:31 pm

    Jason:

    Love to pick your brain from your iHatch days. We would really appreciate your thoughts. If you e-mail a response, I will send telephone information.

    Thanks