FCC Proposes Easing Wireless Spectrum Bids - Wireless Spectrum: Roadblocks (
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ROADBLOCKS
Investors were unwilling to meet the government's original minimum
price for the D block spectrum, considered valuable because its signals
go long distances and penetrate thick walls.
The government auctioned off nearly $20 billion worth of 700 MHz spectrum earlier this year, with AT&T Inc (T.N: Quote, Profile, Research, Stock Buzz) and Verizon Communications Inc (VZ.N: Quote, Profile, Research, Stock Buzz) the biggest winners.
The companies have complained about several aspects of the FCC's
approach. Verizon and AT&T both want the spectrum to be sold in
pieces from the start and Verizon has suggested public safety partners
choose their commercial partners.
The current proposal favors a national bidder, which Martin said would ensure the greatest coverage area.
Leading Democrats in Congress and a leading public safety group back
the national approach. Local officials, including those in New York
City, have suggested that cities be given the spectrum directly and
want more control dealing with whichever commercial group emerges as
the licensee.
Martin said if a consensus of commissioners agreed on lowering the
minimum bid, he might be open to the idea. Martin wants the commission
to vote on a final rule by year end.
Several commissioners cited the nation's financial turmoil as the
basis for their skepticism over whether the proposal would attract
bidders.
But Martin said the need for airwaves for public safety officials is
still urgent, no matter what is going on with the economy, citing
natural disasters and the overhang of a potential terrorist attack.
"We can't afford to continue to just wait forever ... It's been
seven years since 9/11," Martin said. "I think it's important to make
this valuable piece of spectrum available to the marketplace in a
timely manner."
The FCC is seeking public comment as part of its rulemaking process.
A final vote by commissioners is needed to approve the rule.
(Editing by Phil Berlowitz, Gerald E. McCormick, Gary Hill)
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