FCC Approves Open Access Wireless Band

The FCC have voted in favour of open access, setting the rules for the upcoming auction which could raise as much as $15 billion. In a previous article, I went into detail about Google's $4.6 billion bid to open up access to the spectrum for any wireless device, software or network. Along with a coalition of public interest groups, they pushed for the open access, but Google in particular didn't get one of their provisions, which would have required a licensee to sell access to their network at wholesale prices. Forbes has speculated that Google will not bid because the result was not wholly favourable to their intentions. It should also be noted that Michael Copps and Jonathan Adelstein, two of the commissioners who voted in favour of open access also expressed a preference for the wholesale provision that was promoted by Google, but voted in favour of the final rules anyways. FCC commissioner Kevin Martin was on side with the open access idea, and supported by two other commissioners, proposing that the winning bidder of the airwaves, should be required to allow consumers to have open access, unlike current wireless bands, which are restricted by the companies who currently lease accessible waves only to cell phone makers and software business of their choice. The importance of this auction is the opportunity for new players to enter a competitive business, that is dominated by big phone companies, however in today's decision, only one third of the band will be subject to the open access provision. The auction is expected to take place in January 2008 and the television broadcasters will stop using the band by February 2009. The 700 MHz band can travel longer distances than current spectrums and can pass through thick walls. It is ideally suited for cityscapes, where many tall buildings and human activity can interfere with signals. Under the new rules a 10 MHz chunk of the band will be granted to a single non-profit operator, but would be reserved for public safety services, such as fire, ambulance and police across the country. This is good news for Americans, especially since the critical communications problems during the 9/11 disaster were evident from the numerous accounts by Firefighters and other emergency responders. Some of this band could also be shared with commercial operators. The other 22 MHz part of the spectrum will be open for bidding in licenses covering large regions as well as smaller individual market licenses. The FCC kept its suggestion of $4.6 billion as the minimum bid for that portion of the airwave band, so if Google is really serious about applying the wholesale conditions, which didn't make the final cut, they can still implement their plan if they win the auction. They had already announced that they would put up that amount. Consumers could come out winners in the end, but they will have to wait until 2010 to enjoy the results and Foxnews speculates that it will only be good if the open access rules are enforceable. In a statement reported by CNN Edward Markey, the chairman of the House telecommunications subcommittee praised the FCC's decision saying "Today's historic vote by the FCC begins to untangle the stranglehold wireless companies have exerted over a consumer's ability to use any device and application chosen by the consumer, not the service provider." CNN also reported on an enforceable condition of the open-access rules:

If a company didn't abide by the rules, the FCC is putting in place a complaints procedure through which hand set manufacturers and consumers could complain. The FCC would have to rule on such complaints within 180 days.

FCC Chairman Kevin Martin was quoted as saying "I hope that will actually spur a more open platform on this new piece of spectrum but also make sure that some of the benefits of innovation are then able to flow to some of the other networks as well." Michael Copps who ended up voting in favour was quoted in the same National Post source as saying "Several sophisticated companies and financial institutions have concluded that wholesale is indeed a viable economic model...Smaller entrepreneurs deserve an alternate path to wireless access." A Google representative was quoted as saying "The FCC took some concrete steps on the road to bringing greater choice and competition to all Americans." The company also said that they would have to review the details of the ruling, before deciding on whether it will go ahead with a bid.