 The FCC's plan for 700 MHz; sections in yellow have already been auctioned off and sections in gray are reserved for public safety services. (Source: FCC.gov)
The FCC's rules for the massive frequency auction falls short of including Google’s "four requirements"
Rules and procedures have been finalized for the FCC’s upcoming 700
MHz auction, with a date set for January 28, 2008. In a news release posted
(PDF) to the FCC’s website on July 31, parts of the 700 MHz band not
already auctioned off will be carved into several subsections under “upper” and
“lower” bands, stretching from 698 to 806 MHz.
While the lower band is reserved
entirely for commercial services, the upper band includes allocations for both
commercial services and public safety agencies, and more importantly, includes special
requirements mandating open access and interoperability.
Some of the commercial requirements include: -
A 10-year license term.
- New, tougher requirements to promote better access and improve the provision of service, especially in rural areas.
- Within four years, licensees are required to provide coverage to at least 35-40 percent of their licensed area, with at least 70-75 percent coverage by the end of the license term, depending on the licensed area.
- If licensees fail to meet their four-year requirements, the end-of-term requirements get pushed to eight years instead of ten.
- If licensees fail to meet their end-of-term requirements, the FCC will automatically reclaim uncovered areas and make them available to other users.
- For licenses in the upper band, licensees are required to provide a platform that is “more open to devices and applications,” allowing consumers their choice in applications and devices to connect with. This condition is “subject to certain reasonable network management conditions that allow the licensee to protect the network from harm.”
While the rules fall short of Google’s lofty “four
requirements,” they represent a suitable middle ground for wireless
operators -- who wanted no requirements -- and a positive development for US consumers,
whose only wireless options currently consist of tightly controlled services. The “open platform” requirement was introduced last month,
first surfacing as a vague set of rules from FCC Chairman Kevin Martin. On July
9, Google CEO Eric Schmidt wrote
Martin with a specific plan that expanded the FCC’s rules, which Google saw as
weak. In the letter, Google suggested four specific requirements, which
included a controversial “wholesale” clause that network service be available to
resellers on a wholesale basis. While Martin expressed reservations about
Google’s proposal, he remained optimistic about the FCC’s plan, going so far as
to call the 700 MHz band a “third
pipe” alternative to America’s current cable/DSL duopoly. Bidding will be anonymous, with bidders’ identities withheld
until the auction’s close. Finnish cell phone manufacturer Nokia applauded the
decision, calling it “an important step towards meeting consumer demand and
driving further innovation,” in a press release made
public on Tuesday. “We commend the FCC and Chairman Martin for taking the
initiative to promote even greater competition and innovation in the U.S.
wireless industry,” said Nokia CEO Olli-Pekka Kallasvuo.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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