Today the Federal Communications Commission announced its decision to go ahead with its plan for the upcoming January auction of some very valuable airwaves
And it will be effecting you and your wireless usage in the near future.
At stake? A huge chunk of prime wireless spectrum known as ‘700 MHz‘. It was bandwidth held in reserve for the television industry, but the technology there won’t need it so it’s being sold off. The entire spectrum is worth $15-20 billion, and will be sold in chunks (at least one of which will be big enough for a new national network.)
What’s so special about it? Well, according to InternetNews; “that spectrum is considered ideal for delivering advanced wireless services, including broadband that meets or exceeds the speeds of DSL or cable modems.”
Normally, this would mean the Big 4 (AT&T, Verizon, T-Mobile, Sprint/Nextel) would slice it up amongst themselves..
But an opportunity like this one doesn’t happen every day, and technology veterans and entrepreneurs alike saw the chance to break up the ‘pseudo-monopoly’ of the Big 4.
With Google leading the charge, an FCC filing was made asking that the auction NOT be business as usual and that the FCC adopt 4 ‘Open-Platform’ initiatives that would make the new bandwidth available, like the internet, for anyone to tap into.
Seasoned wireless telephony executives as well as other corporations joined Google - including eBay (who owns ‘Skype’), Amazon, and Yahoo! They published an open letter asking for consumer and corporate support for the open-platform. That, in turn, led to Congressional hearings.
The Big 4 from came out swinging. Their executives and lobbyists said that the Google-group’s plan was unfairly helping smaller, less-heeled concerns not only to compete - but to dictate terms. They also made the point that their own well-funded R&D groups were the ones most poised to take best advantage of the opportunities of this new bandwidth.
“In the U.S., wireless spectrum for mobile phones and data is controlled by a small group of companies, leaving consumers with very few service providers from which to choose,” fired back Chris Sacca, Google’s Head of Special Initiatives.
Google then stepped up and pledged that if FCC adopted their proposed initiatives, then Google would promise to buy $4.6 billion worth for a new network.
FCC Chairman Kevin Martin responded with a plan that tried to walk in the middle. Neither side liked it very much and both put in a big final push to influence him more to one side or the other.
As the industry held its breath today, the final decision surprised few and disappointed many. Martin’s plan is the FCC choice.
To simplify; two of the Google ‘Open Platform’ initiatives were adopted:
1) Open applications: consumers should be able to download and utilize any software applications, content, or services they desire. This means you can use Skype or Firefox or whatever else on your phone .
2) Open devices: consumers should be able to utilize their handheld communications device with whatever wireless network they prefer. No more having to buy a Razr phone made JUST for Verizon or having to switch to AT&T for your iPhone.
But the other key two were not:
3) Open services: Google wanted third parties (resellers) to be able to acquire wireless services from a 700 MHz licensee on a wholesale basis, based on reasonably nondiscriminatory commercial terms. It would have spawned small, regional internet and cell-phone companies.
4) Open networks: Google wanted the right for third parties (like Internet service providers) to be able to interconnect at any technically feasible point in a 700 MHz licensee’s wireless network. Always a long-shot request, this would have had the greatest impact in bringing high-speed internet to more people - especially those who can afford it least.
Ultimately, analysts see this decision in favor of the Big 4. But the battle itself has cracked open a previously locked-down industry.
The question now is if Google will bow out, or fight with its wallet come January.
Tags:700 mhz, advanced wireless services, AT&T, auction, decision, ebay, explained, fcc, federal communications commission, Google, kevin martin, Nextel, spectrum, Sprint, T Mobile, television broadcasters, verizon, wireless auction wireless radioShare This
