[governance] The Federal Communications Commission 700 MHz Spectrum Auction

[yehudakatz at mailinator.com]

The FCC will hold a mock auction on January 22 from 10 a.m. to 5 p.m. EST,
during which qualified bidders can submit non-binding bids in order to test the
system. The mock auction will include 176 A Block licenses and 12 C Block
licenses, or 188 or the 1,099 licenses that will be up for grabs on January 24.

The Auction (The Live Binding Auction) will take place on January 24 and
participants must place their bids through the Internet or telephone, the FCC
said. It will kick off in two-hour increments beginning 10 a.m. EST.

The Federal Communications Commission released the names of 266 "short-form"
applicants for the 700 MHz spectrum auction scheduled to start Jan. 24. 2008.

FCC accepted applications:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-07-5030A2.pdf
and here: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-07-5030A3.pdf

Three (3) Articles follow below: F.Y.I. Referance
--

A Primer On The Coming FCC Auction 
by Adama D. Brown -  8/30/2007
Art. Ref.: http://www.brighthand.com/default.asp?newsID=13301
Print: http://www.brighthand.com/printArticle.asp?newsid=13301
-
Thanks to a number of recent news articles, most people should be aware of the
upcoming auction of radio "spectrum" being held by the FCC in January. What
everyone might not know is why this is going to be very important for anyone
who uses a mobile device in the United States, and what the exact mechanics
are.

What's actually being auctioned? The answer is, licenses on the right to use
certain radio frequencies. Specifically, a big block between 698 and 806 MHz,
typically called the 700 MHz range for obvious reasons. This is a range that
was formerly used for analog TV channels numbered 52 through 69. When
over-the-air TV switches over to digital broadcasts in early 2009, these
sections will no longer be needed, so the FCC is offering them for other use.
Most of the interest centers on the potential for high-speed wireless Internet
service, and to a lesser extent mobile phone service.

Why are these licenses so desirable? Simply put, it has to do with radio
mechanics. As radio frequencies go down, they get more range and ability to
penetrate obstructions like buildings and tree foliage for the same amount of
energy put into the signal. The 700 MHz band is considered to be a nearly ideal
combination of available bandwidth -- about 10 megabits total for a single 5
MHz "block" -- and range, which can be up to a hundred miles. A two-way
connection would limit the range, but it's still not inconceivable that there
could be mobile connections at up to 30 miles, and fixed installs even farther
out. This is compared to current cellular systems which tend to max out at
between 5 and 15 miles, depending on conditions.

The most desirable set of licenses is the C group. This represents two blocks,
each 11 MHz wide, which can be bought separately. Each of these blocks has a
nationwide license -- a company which buys one can deploy wireless coverage
using it anywhere in the United States. To give an idea how valuable this is,
Google has said it may be committing an opening bid of $4.6 billion dollars in
order to try and capture these licenses. This is also the swath that Verizon
wants to own.

The same nationwide licensing applies to the D group, which is two blocks of 5
MHz each. However, whatever companies buy the two D blocks will be required to
help build and maintain a national public safety network as well. Due to this,
and the smaller amount of space, the D blocks are less desired than the C
group, and thus are considered to be the best chance of seeing a relatively
unknown company get a national license.

Last but not least are the A, B, and E groups. Each of these is comprised of
two blocks of 5 MHz, for a grand total of 30 MHz. However, they're broken up
into about a thousand regional licenses, meaning that they'll be more
affordable for small carriers, local players, or others who aren't cash-rich to
potentially grab. In theory, a company could also buy enough of these regional
licenses to build a national or semi-national network as well. In theory,
there's enough radio spectrum up for grabs to build ten new nationwide
networks, or four national networks and a dozen regionals. More likely, though,
a significant amount of the available spectrum will be bought out by existing
players to supplement their current offerings. 

The last question is, who's bidding? Well, nobody knows for sure until it
happens, but Verizon is a safe bet, and Google may be as well. It's likely that
Sprint and some of the other mobile phone carriers will also at least test out
the waters. Equally interested are some startup companies with big funding;
satellite TV companies which may want the bandwidth for "triple play" services;
and even possibly some real surprises like wired telecommunication companies
looking to expand.

One thing to be sure of is that whoever comes out a winner in the auction,
don't expect them to just sit on their winnings. The terms of the sale require
that companies build out networks using their purchases, with a minimum 35-40%
coverage of the company's licensed area after four years, and 70-75% after ten
years
--

Google Playing to Win in the 700 MHz Auctions
By Brough Turner, Jan 21, 2008 
circleid.com
 
Art. Ref.:
http://www.circleid.com/posts/812112_google_win_700_mhz_auction/
-
Many say Google will bid to lose in the upcoming 700 MHz auctions and many more
are equivocating. The idea is Google’s entry alone will induce enough openness,
and besides they couldn’t afford to become an operator. This shows a total lack
of understanding! 

Google is run by idealists who want to change the world and have the money to
undertake grand projects. 

They are already seeking to index, and make available, all the world’s
information. As part of this vision they are scanning all existing books and
fighting the legal battles this implies. When their own video repository failed
to gain traction, they bought YouTube for $1.65B, and took on their legal
hassles. Most recently their Palimpsest project is going to host enormous
scientific databases for free. In short Google is not afraid to spend money or
take large risks, including legal risks, to accomplish something they believe
in. 

Critical for Google’s vision, and for their business, is open Internet access.
Fixed access is relatively open today, but mobile is a big problem. So Google
won’t seek a little opening on the part of some US operators. Google needs open
mobile access, i.e. dumb pipes, which means the total destruction of existing
mobile operator business models. 

They’ve already started from the edge with the Open Handset Alliance and the
Android open-source mobile handset stack. Google’s made a major investment
here, not to compete for revenue on handset software or to control applications
on edge devices, but to tip the balance from operators to the edge. First and
foremost, Android is an open platform to encourage innovation. It’s also free.
Google doesn’t need or expect a direct return on this investment. 

The 700 MHz auctions are just the next step. Again, look for something
unconventional. Google doesn’t need or want to become a mobile operator. They
want to create an industry where mobile dumb pipes are widely available. 

Assuming Google wins, what might they do? 

This is speculation on my part, but a good plan might be two fold. 

First pick the latest mass market technology for mobile broadband access,
probably mobile WiMAX, and set up a program to foster numerous independent
wireless ISPs (WISPs) rolling out services on Google’s frequencies. In the
1990s, the US had thousands of ISPs providing dial up access over traditional
phone lines. The goal here would be to duplicate that entrepreneurial flurry
for both fixed and mobile wireless access. 

You may argue fixed is OK as services are local, but for mobile you really need
regional and national coverage. Yes, but Google themselves could offer WISPs
the opportunity to participate in a federation for national roaming, perhaps
using Google Checkout for payments. 

Second, formalize a set of rules for smart-radios based on the work they’ve
been doing for open access to TV White Space. Throw open their spectrum to
anyone who’s willing to use appropriate smart radio technology, thus fostering
long term innovation. Open access in the 2.4 GHz and 5 GHz bands has certainly
fostered innovation. Google could achieve something similar. 

These two steps, a mass market technology like WiMAX for rapid deployment, and
open access for innovation, yield the maximum long term benefit for this
spectrum and increase the likelihood that other countries will follow the US
lead (as the world has done for 2.4 GHz and WiFi). 

Reference: See FCC’s revised 700 MHz band plan for commercial services [PDF] 
http://www.fcc.gov/073107/700mhz_band_plan_chart_073107.pdf
---

Future of First Responder Spectrum In Doubt
by Chloe Albanesius, 01.14.08
pcmag.com

Art. Ref.: http://www.pcmag.com/article2/0,2704,2249050,00.asp
Print: http://www.pcmag.com/print_article2/0,1217,a=223463,00.asp
-
The Federal Communications Commission (FCC) on Monday formally accepted the
applications of major telecom and Internet players for the upcoming 700 MHz
auction, but an announcement from Frontline Wireless Saturday that it will
shuts its doors puts the future of first responder spectrum in jeopardy.

The FCC issued final approval for 214 bidders in the January 24 spectrum
auction, but shut out 52 applicants.

Among those on the non-qualified bidders list was Frontline Wireless, an entity
that was looking to build a national network for emergency responders. The
group said in a statement on its Web site Saturday, however, that it was
"closed for business at this time" and had "no further comment," calling into
question whether or not the auction will result in more airwaves for the
nation's police and firefighters.

At issue is a swath of spectrum in the 700 megahertz band that will become
available once television broadcasters shift from analog to digital signals in
early 2009. The FCC on January 24 will auction off access to that spectrum,
which is considered highly valuable because of its far-reaching strengths.

In early December the FCC received 266 auction applications. Ninety-six of
those applications were accepted; 170 were deemed incomplete, and were required
to be re-submitted by January 4.

One of the only companies to receive approval in December was Google, bidding
under the name Google Airwaves. Earlier this year, Google pushed the FCC to
adopt open applications, devices, services and networks. The commission later
adopted "open access" rules for the 22-MHz upper "C Block," but denied Google's
request for a wholesale market approach.

Google is still listed as an accepted applicant, as are previously rejected
bidders like Alltel, AT&T, Verizon Wireless, Cox Wireless, Cablevision (bidding
as CSC Spectrum Holdings), Echostar (bidding as Frontier Wireless), and
Qualcomm.

Frontline, however, which filed its bid under the name Licenseco LLC, appeared
on the commission's non-qualified bidders list. Late last year, the group
successfully lobbied the FCC to extend its upfront payment deadline by one week
due to the holiday season.

The auction will take place on January 24 and participants must place their
bids through the Internet or telephone, the FCC said. It will kick off in
two-hour increments beginning 10 a.m. EST.

The FCC will hold a mock auction on January 22 from 10 a.m. to 5 p.m. EST,
during which qualified bidders can submit non-binding bids in order to test the
system. The mock auction will include 176 A Block licenses and 12 C Block
licenses, or 188 or the 1,099 licenses that will be up for grabs on January 24.

----
End
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