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Ruling keeps carriers big
08.05.07
Sunday, August 05, 2007

In 2008, there will be a governmental event that will affect your future, and it won't involve a Clinton, a Romney, a Giuliani or an Obama.

It is the government auction of the 700 MHz wireless spectrum.

This week, the Federal Communications Commission set the rules for that auction, and they are disappointing.

In TechMan's opinion, the FCC missed a chance to do a world of good for the consumer and to advance communications in this country significantly.

Instead, it was unable to break away completely from running with the big dogs -- Verizon, Sprint, AT&T and their like.

First, where did this spectrum come from? You may remember TechMan writing in the past about the end of analog television signals. When all television broadcasting goes digital by law in 2009, the bandwidth formerly carrying the analog TV signals becomes available. It is valued at billions and will be sold to the highest bidder.

This is 'beach front' wireless real estate. Its low frequency makes it powerful and penetrating. Think broadcast television: It goes for miles, passes easily through walls, you can get it practically anywhere. It is perfect for wireless Internet.

The FCC rules do throw the consumer a bone by specifying that one third of the spectrum be device and software independent. That means for cell-phone service on that part of the spectrum, the consumer cannot be forced to buy his phone from the big dogs, as it is now. And the consumer can download any software he likes on his phone, often not allowed now.

But for the great majority of us, whose cell-phone service remains on the spectrum that the big dogs now own, those restrictions do not change.

What failed to make the new rules is the "open access" that was sought by Google and other tech companies. This would have required the auction winner to sell access to its network "wholesale" to other companies.

It would have allowed small companies into the cell-phone carrier business or the wireless Internet business to offer alternatives to the big dogs. Obviously the big dogs -- Verizon and AT&T and Sprint -- didn't like that idea and lobbied hard against it and won. Competition isn't their thing.

Google Inc., itself a big dog, plunked down $4.6 billion and said it would bid on the new spectrum if wholesaling were in the rules. Because it is not, Google is unlikely to bid.

Some speculated that, had Google bought the spectrum, it would have provided free wireless Internet nationwide, a good thing for a company whose products are all online. Think of it: free wireless Internet access everywhere. What that would do for comunications in this country!

Well, forget it. The FCC obviously thought that idea was too radical. Let the telecoms and cable companies control Internet access. And if they charge too much for Internet access for the poor among us, too bad.

So the FCC had a chance to do some real good for the consumer and the country. Instead it threw us a bone and kept the meat for the big dogs.

First published at PG NOW on August 2, 2007 at 4:20 pm
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