Muted Reaction To FCC Draft Auction Rules

MUTED REACTION TO FCC DRAFT AUCTION RULES
[SOURCE: DowJones, AUTHOR: Corey Boles corey.boles@dowjones.com]
Draft Federal Communications Commission rules on a major auction of radio spectrum backed some proposals favored by Google. But potential bidders said Tuesday they need further details to determine the clear winners in the process. Rep. Edward Markey (D-MA), chairman of the House Telecommunications Subcommittee, said in a statement he welcomed the news that FCC Chairman Kevin Martin appeared to " recognize that the wireless marketplace is insufficiently competitive and innovative today due to current market structures and practice." Blair Levin, a telecoms analyst at Stifel Nicolaus, said that the news of Martin's draft rules still left unanswered whether they would be enough to encourage a potential new national player into the auction process. For public interest groups, which have largely been on Google's side in its bid to have the auction rules structured to encourage the participation of a third broadband competitor, Martin's draft rules don't go far enough. Gigi B. Sohn, president of Public Knowledge, said that without a third stipulation that the winner of the spectrum must offer access to their broadband network on a wholesale basis, the other two conditions would mean very little. She acknowledged that effectively Google and public interest groups were asking the FCC to "rig the auction" to facilitate a third national broadband competitor to the incumbents - AT&T, Verizon Communications Inc. and the cable companies. But she said without such action, the spectrum would be acquired by these incumbents and the "last best auction" would be a missed opportunity by the FCC.
http://money.cnn.com//news/newsfeeds/articles/djf500/200707101553DOWJONESDJONLINE000599_FORTUNE5.htm

* Statement by Chairman Markey
http://markey.house.gov/index.php?option=co

* Debate heats up over open access spectrum rules
http://news.yahoo.com/s/infoworld/20070710/tc_infoworld/90094

* FCC Plays Games With Wireless Competition
http://www.publicknowledge.org/node/1080
m_content&task=view&id=2950&Itemid=141

* Skype Appeals to FCC to Keep Wireless Internet Open
http://digg.com/tech_news/Skype_Appeals_to_FCC_to_Keep_Wireless_Internet_Open

* Spectrum Sale May Open Market
http://online.wsj.com/article/SB118411115421962670.html?mod=todays_us_page_one

* FCC wants open access to spectrum
http://www.latimes.com/business/printedition/la-fi-fcc11jul11,1,4975261.story?coll=la-headlines-pe-business

REED HUNDT'S SPECTRUM PLAY
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] The Federal Communications Commission has been ordered by Congress to auction off a large swath of valuable telecom spectrum licenses by the end of January. The only question is whether the auction will be open and fair, or tainted by rules that favor some potential bidders over others. It looks as if FCC Chairman Kevin Martin has opted for the latter. The agency hasn't formally released the rules, but yesterday USA Today quoted Mr. Martin as saying that "Whoever wins this spectrum has to provide . . . [a] truly open broadband network -- one that will open the door to a lot of innovative services for customers." In other words, Mr. Martin wants to saddle the winning bidder with "net neutrality" mandates. [W]e hope someone in the Bush Administration tells Mr. Martin that the FCC's obligation isn't to carve out spectrum for special interests, but to serve the larger public by selling spectrum to the highest bidder.
http://online.wsj.com/article/SB118411607574862804.html?mod=todays_us_opinion
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