The Federal
Communications Commission will investigate complaints that a contractor
tried to extort potential bidders for a block of the spectrum set aside
for emergency responders, and doomed the auction to failure.
The auction of the agency's D block of the 700MHz spectrum, reserved
at a lower price for emergency responders and private ventures who
agree to share it with emergency responders, netted a single $472
million offer from Qualcomm, which was well below the FCC's $1.3
billion reserve price. Several public interest groups, including the
9/11 Commission and members of Congress, have asked the agency to
investigate accusations that Cyren Call, a consultant hired to manage
the handover of the D-block spectrum, demanded payment from auction
participants and discouraged bids.
Kevin J. Martin, chairman of the FCC, referred the matter March 21 to FCC Inspector General Kent R. Nilsson.
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