FCC Plans to Investigate Wireless Spectrum Auction

The FederalCommunications Commission will investigate complaints that a contractortried to extort potential bidders for a block of the spectrum set asidefor emergency responders, and doomed the auction to failure.

The auction of the agency’s D block of the 700MHz spectrum, reservedat a lower price for emergency responders and private ventures whoagree to share it with emergency responders, netted a single $472million offer from Qualcomm, which was well below the FCC’s $1.3billion reserve price. Several public interest groups, including the9/11 Commission and members of Congress, have asked the agency toinvestigate accusations that Cyren Call, a consultant hired to managethe handover of the D-block spectrum, demanded payment from auctionparticipants 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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