Kevin Martin

FCC to vote on USF at December meeting

Phil Goldstein — Mon, 01 Dec 2008 11:06:07 -0500

In addition to the controversial proposal on AWS-3 spectrum, the FCC will vote on proposed rule changes to the Universal Service Fund (USF) when it convenes for its last meeting of the year Dec. 18.

At the Nov. 4 FCC meeting that involved several high-profile votes, Chairman Kevin Martin made it clear that he wanted to bring the USF proposal to a vote at the December meeting, after other commissioners had balked at voting on it.

Martin has advocated dropping the complex rules that assess fees in favor of a uniform rate. The current system assesses the fees based on a variety of factors, including the kind of carriers involved, the traffic on the network and how far the traffic travels. Martin's move has drawn criticism from consumer advocates who say it will favor the Tier 1 wireless carriers and do significant damage to smaller rural carriers that depend on the fees as a major source of their income.

In October, several U.S. senators, mostly from rural states, sent a letter to the FCC, urging the FCC to delay its vote, so that more time could be taken to assess the potential damage to rural customers.

For more:
- see this article (sub. req.)

Related Articles:
Senators urge FCC delay on intercarrier compensation
FCC plans intercarrier fee rule changes

What will a new FCC look like?

Lynnette Luna — Mon, 17 Nov 2008 00:23:49 -0500

Chalk one up for FCC Chairman Kevin Martin. He managed to cross some high-profile initiatives off his to-do list before his tenure as chairman is likely up once President-elect Barack Obama takes office.

Back in August, it was looking doubtful that the commission was going to rule on a number of key issues that impact the future of broadband wireless. Yet earlier this month Martin and company approved the use of white-space devices for super-WiFi services amid a flurry of lobbying both for and against the initiative. It okayed the New Clearwire deal, which involves Sprint pooling its WiMAX assets with Clearwire with the help of millions from Intel, Google and cable operators to roll out a nationwide mobile broadband network. And it approved Verizon Wireless' $28.1-billion proposed buyout of Alltel to create the nation's largest operator.

The other major wireless initiatives left on the table are the auction of spectrum in the AWS-3 band and a re-auction of the 700 MHz D-block. The AWS-3 auction would require the licensee to dedicate 25 percent of its network capacity to free broadband service, install a network-based Internet filtering system to block pornography and allow open access to third-party devices and applications. Again, the commission is facing some stiff opposition to the plan from operators such as T-Mobile that worry about interference with the AWS-1 band, but the FCC's own engineering studies show that AWS-3 and AWS-1 networks can safely co-exist.

Will Martin be able to stay to see them through? Martin has hinted to the fact that he may stay on at least through the digital TV transition in February. Whether he stays permanently or retains his chairmanship is of course questionable now that Democrat President-elect Barack Obama is taking office. However, it didn't seem like Martin did all that much to anger Democrats. In fact, Democrats generally support his AWS-3 auction plan and the idea of wireless broadband bridging that pesky Digital Divide. He also recently sided with Democratic FCC commissioners to eke out a 3-2 vote to punish cable TV giant Comcast for blocking file-sharing traffic.

Yet, President-elect Obama's campaign was based on change, and change is what the FCC will likely get. Right now a host of names are floating around as potential successors and commissioners. And if the FCC sees a major shake-up you can guarantee an industry shake-up, and incumbent operators will be fighting about more than just whether proposed wireless broadband initiatives interfere with their operations. Everything from revisiting the spectrum cap to stricter merger scrutiny to forced open access among all operators could be on the table, according to industry pundits. And you thought white spaces and a free broadband plans were radical. --Lynnette

Obama to "put his own stamp" on FCC

Phil Goldstein — Wed, 12 Nov 2008 10:48:36 -0500

President-elect Barack Obama will move to make changes at the FCC as he prepares to take power, the co-chairman of his transition team said yesterday.

John Podesta, a former Clinton administration official, said Obama's transition team would look at the FCC as part of its review of more than 100 federal agencies, departments and commissions. This review is necessary to "make strategic policy, budgetary and personnel decisions prior to the inauguration."

Regarding the FCC specifically, Podesta said, "I have no doubt that the President-elect will put his own stamp on the FCC."

He did not comment on the fate of current FCC Chairman Kevin Martin, and said "obviously the FCC continues to operate." One of the major issues that may be unresolved by Inauguration Day is the fate of the 700 MHz D-Block spectrum, which has been set aside to build an interoperable wireless network for first responders.

For more:
- see this article

Related Articles:
Obama campaign releases iPhone application
FCC approves white spaces, creates interference restrictions

Senators urge FCC delay on intercarrier compensation

Phil Goldstein — Wed, 29 Oct 2008 10:09:15 -0400

A bi-partisan group of ten U.S. senators is urging the FCC to delay its vote on making changes to intercarrier compensation fees and the Universal Service Fund (USF), saying more time is needed to asses the potential disadvantages the changes would have on rural customers.

One of the many decisions the Federal Communications Commission is set to make on Nov. 4-- besides the $28.1 billion Verizon Wireless-Alltel merger, the Sprint-Clearwire deal to create the new Clearwire and a decision about the future use of white-space spectrum--is whether regulatory changes are needed to intercarrier compensation fees. FCC Chairman Kevin Martin has advocated dropping the complex rules that assess fees in favor of a uniform rate.

Consumer advocates have argued that this will benefit the major incumbent carriers financially, while pinching smaller rural carriers that depend upon the fees as a major source of income.

The senators, mainly from rural states, said in a letter to the FCC, that while the FCC's stated position is to use changes to the USF to expand rural broadband access, the proposed changes might actually hurt that effort.

"Instead of rushing a proposal through which has not been open for public review, great care needs to be taken to craft a policy which is comprehensive in nature and mindful of rural telecommunications customers when dealing with intercarrier compensation and USF reform," the senators said in a letter.

For more:
- see this release

Related Articles:
FCC plans intercarrier fee rule changes
Good, Tough and Timely. Revising Intercarrier Compensation

7. Kevin Martin, Chairman, Federal Communications Commission

Sue Marek — Thu, 16 Oct 2008 12:07:10 -0400

What makes him powerful: Nominated by President Bush to be an FCC commissioner in 2001 and appointed chairman in 2005, Martin has steered the legislative policies that shape the wireless industry during one of the most pivotal and transformative eras of its existence. Following in the wake of previous FCC Chairman Michael Powell, Martin's tenure stretches from the merger of Sprint and Nextel to the current proposed merger of Verizon Wireless and Alltel, and throughout that time he has consistently proven a controversial figure (a seeming prerequisite of the job), facing criticism from his opponents for his shadowy, even secretive approach to determining critical policy decisions. Which makes it all the more ironic that the introduction of open access requirements into this spring's 700 MHz spectrum auction could prove the defining moment of his tenure.

Martin presided over the auction, which wound up netting the federal government a cool $20 billion. Verizon Wireless was arguably the biggest winner, muscling past Google with a $4.7 billion bid for the much-coveted C-block, but Google was by no means the loser. The web services juggernaut later revealed it only entered the auction to drive up the bidding and in doing so guarantee the FCC would attach certain open access requirements, setting the stage for its fledgling mobile operating system Android to enter the U.S. marketplace. The auction also set into motion Martin's announcement that the commission would deny Skype's petition to apply the so-called "Carterphone" rules enacted in the 1960s to mobile, arguing it would be premature for the commission to add more requirements to wireless carriers now that so many operators have started embracing a more open environment.

Issues currently on Martin's plate include the fate of the D-block, which has been envisioned for use as a national network for first responders. The FCC is still in the process of deciding how that network will run, but in September the commission agreed to new guidelines for a possible D-block auction. Martin also has a few other items on his agenda that may or may not be resolved before the November elections: Most notable is the debate over white-space, the empty spectrum between broadcast spectrum that some companies like Google and Microsoft want to see made available for unlicensed wireless applications. Martin has not said when a decision would come on that, but remarked he would like to make a decision before the end of the year. The aforementioned Verizon/Alltel merger is also a hot-button issue, and while negotiations are still ongoing, all indications are that Martin and the FCC will approve the deal before the end of the year. It's still too early to determine Martin's legacy, but there's no question his fingerprints are all over the wireless landscape.

FCC hopes to vote on white-space on Nov. 4

Phil Goldstein — Wed, 15 Oct 2008 15:13:49 -0400

The chairman of the Federal Communications Commission is seeking an Election Day vote by the commission on white-space, bringing to a head a long-running debate over whether white-space should be used for unlicensed wireless applications.

FCC Chairman Kevin Martin, at a news conference Wednesday afternoon, said he was going to circulate a report to his fellow commissioners prepared by the FCC's Office of Engineering and Technology that lays out what standards devices looking to operate in the white-spaces must meet to avoid interference with broadcasters. Companies like Google, Microsoft and HP have argued for unlicensed use of the white-space--the unused slivers of spectrum in the 700 MHz band between spectrum used by broadcast TV stations. Broadcasters have opposed the idea, saying it will create too much interference.

Martin said he hopes to vote on the idea at the FCC's Nov. 4 meeting.

"I'm hoping to take advantage of utilizing these airwaves for broadband services to allow for unlicensed technologies and new innovations in that space," he said. "This spectrum is very conducive to broadband service...the white spaces can be used as long as it does not interfere with broadcasters."

For more:
- see this article

Related Articles:
Google's Page, allies express support for white space
Google asks FCC to ignore Sprint, T-Mobile

FCC proposes new plan to auction D-Block

Phil Goldstein — Thu, 25 Sep 2008 12:51:40 -0400

The FCC voted on Thursday to move ahead with plans to auction the 700 MHz D-block spectrum and create a national interoperable network for first responders, setting the stage for a possible final ruling later this year.

The proposed plan would create three alternate sets of D-Block spectrum--one for a national network and two regional networks. The minimum bid for the spectrum will be $750 million, a significant decrease from the minimum bid of $1.3 billion that was required for the D-Block in the initial 700 MHz auction earlier this year.

With the possible regional coverage, rules were proposed that would require the license winners to have 40 percent of a region covered four years after a license was awarded, 75 percent built out after 10 years and between 90 and 98 percent built out after 15 years. The regional bids may be reduced below the $750 million threshold if certain specific circumstances warrant it.

Three members of the five-member commission--Chairman Kevin Martin and commissioners Deborah Taylor Tate and Robert McDowell, voted to approve the measure. Two commissioners, Michael Copps and Jonathan Adelstein, expressed deep concerns with the proposal, but voted to concur.

Once the proposed ruling is entered into the Federal Register, which could happen in approximately a week, there will be a 30 day comment period and 10 days for responses. Martin said the earliest an auction could take place would be six to seven months after a final ruling has been made.

Copps raised his concerns and said the FCC had tried once before to sell this spectrum to commercial interests and had failed, and that this was the last chance to get the process done right. But he worried that commercial interests would not be able to come up with sufficient capital to actually build the infrastructure needed for the networks, given the current financial crisis engulfing Wall Street. "Finding money in the hallowed canyons of Wall Street or anywhere else to get this network built makes Indiana Jones' searchings look like child's play," he said.

But Martin said the job of the FCC was not to continue finding issues to quarrel about, noting that the tension between choosing a national network or regional networks had been known for months, but rather that it was the commission's job to find answers.

"One of the things we're asking in today's items is when should we do the auction in light of the problems. But I don't think we should be delaying trying to figure out what is the right answer as far what service they should be providing the public safety," he told reporters after the meeting had ended. "And that's what is important and that's what we're focusing on today. I do think that there's some disagreement among public safety. I think one of the points of trying to put forward an item today is to try to make sure we're getting all the comments and feedback we can from public safety and from the potential commercial providers."

Are Kevin Martin's wireless broadband dreams in peril?

Lynnette Luna — Mon, 18 Aug 2008 05:56:45 -0400

In the coming months, the FCC has some decisions to make that will impact the future of wireless broadband--a subject that is near and dear to Chairman Kevin Martin's heart as he'd like to see wireless broadband bridge connectivity for the country's have-nots.

Next month, the commission is expected to take up the growing debate over white-space spectrum, that unused TV spectrum that advocates such as Google and Microsoft want used on an unlicensed basis for super-WiFi services. Martin likes the idea, but the FCC faces heavy lobbying pressure from the National Association of Broadcasters and wireless microphone users such as the NFL that fear interference. Recently completed field tests haven't revealed any clear answers over the interference debate.

The FCC also is looking to auction spectrum in the AWS-3 band that would require the licensee to dedicate 25 percent of its network capacity to free broadband service, install a network-based Internet filtering system to block pornography and allow open access to third-party devices and applications. Again, the commission is facing some stiff opposition to the plan from operators such as T-Mobile that worry about interference with the AWS-1 band and Republicans who think crafting such rules would create another 700 MHz D-block debacle.

And the commission is considering the New Clearwire deal, which involves Sprint pooling its WiMAX assets with Clearwire with the help of millions from Intel, Google and cable operators. That plan is also coming under fire from AT&T, which is accusing the stakeholders of providing inconsistent details on how much usable spectrum the new entity will have and reiterated that it wants the FCC to scrutinize the deal like it would other carrier deals.

The question is, can the FCC effectively tackle these decisions before a new administration and Congress comes onto the scene in 2009? The commission is supposed to rule on the New Clearwire deal before the end of the year, but Martin has said the auction will probably not move forward this year because of the intense controversy over the plan. The white-space controversy seems far from resolved as there doesn't seem to be a clear answer over whether these devices cause interference or not. So it's unlikely the commission will come to a consensus on that before the end of the year.

What does that mean for the wireless broadband dream? Will it be stuck in limbo? Some of the nation's operators that don't want to see new competition, appear to be making sure that they continue to cloud the issues until 2009, when these initiatives will perhaps be taken up by a new FCC. Will Martin's dreams be for naught? --Lynnette

Pressure mounting in white space debate

Sue Marek — Thu, 14 Aug 2008 12:00:43 -0400

Lobbyists are getting Capitol Hill involved in the white space debate. Earlier this week eight members of the House of Representatives sent a letter to FCC Chairman Kevin Martin asking the FCC to adopt rules governing white space spectrum within the next 90 days so that the spectrum can be used to establish low-cost broadband connectivity in rural areas and across the country.

And just last week Representatives Anna Eshoo and Edward Markey wrote a similar letter to Martin, warning him that wireless carriers are "seeking unnecessary and unprecedented testing delays to prevent new innovative competitors from entering the market."

The FCC is wrapping up tests of prototype devices that access unused television airwaves, called "white spaces," to see if they will interfere with television broadcasts. Companies such as Google and Microsoft want to use this spectrum to develop new mobile communications devices. However, the initiative has raised the ire of the National Association of Broadcasters, which argues that "white space" devices may interfere with existing television broadcasts.

For more:
- see this WSJ article (sub. req.)
- see this NY Times article

Related articles:
Motorola exec: FCC white space testing going well
White space debate won't be resolved with field testing

FCC asks appeals court to throw out E911 rules

Sue Marek — Fri, 08 Aug 2008 11:57:12 -0400

The FCC has asked a federal appeals court to dump the enhanced 911 location accuracy rules, which were approved last November but have not yet been put into effect. The commission said that the public safety community supports a relaxed standard. Recently the Association of Public-Safety Communications Officials (APCO) and the National Emergency Number Association (NENA) told the FCC that measuring the wireless E911 accuracy at the public safety answer point level was unworkable in practice and that compliance measurements should be accepted at the county level.

The mobile phone industry has lobbied for assessing E911 location accuracy by statewide average. However, FCC Chairman Kevin Martin has said this method is too lax and would not protect consumers who make 911 calls on their cell phones.

For more:
- see this RCR story

Related articles:
D.C. Court puts the brakes on E911
FCC Clarifies E911 Accuracy Requirements

FCC says auction decision won't happen until September

Sue Marek — Mon, 04 Aug 2008 12:24:31 -0400

FCC Chairman Kevin Martin said on Friday that the commission won't make a decision on whether to re-auction the 700 MHz D-Block spectrum or to auction the AWS-3 spectrum until at least September.

Martin says that the commission wants more time to review comments and to allow the FCC engineers to determine whether there is a chance of interference occurring between the AWS-3 spectrum and the AWS spectrum won by incumbent carrier T-Mobile USA. T-Mobile has been opposed to the AWS-3 auction, which requires the winning bidders use at least 25 percent of their spectrum for free wireless broadband service. T-Mobile fears that the AWS-3 wireless Internet service will interfere with the company's plans to deploy wireless broadband in its AWS spectrum.

For more:
- see this article (sub. req.)

Related articles:
T-Mobile takes M2Z to task over AWS-3 auction arguments
FCC Chairman: D-block, AWS-3 auctions won't happen in 2008

T-Mobile pressures FCC to reconsider free wireless Internet plan

Sue Marek — Fri, 18 Jul 2008 10:47:15 -0400

T-Mobile USA sent one of its top executives to Washington, D.C. to plead with the FCC to reconsider its controversial plan to auction a nationwide block of spectrum that would require a licensee to offer free broadband services. On Thursday, T-Mobile's CTO flew to D.C. to meet with the FCC on its proposal. "We're asking the FCC essentially to slow down and give the industry some time to do some testing," said T-Mobile Chief Technology and Innovation Officer Cole Brodman.

T-Mobile argues that Internet activity on the AWS-3 band would interfere with its own wireless services. The company paid nearly $4.2 billion in the AWS spectrum auction and it plans to use this spectrum to roll out UMTS in 26 markets by year-end.

The commission is proposing to combine the 2155 to 2175 MHz band with the 2175 MHz to 2180 MHz band to create a 25-megahertz swathe of spectrum that would support a nationwide license. The spectrum is referred to as advanced wireless services-3 and would require the licensee to dedicate 25 percent of its network capacity to free broadband service, install a network-based Internet filtering system to block pornography and allow open access to third-party devices and applications.

A delay on the proposal for the AWS-3 spectrum auction is likely. Last week FCC Chairman Kevin Martin said that the sale of this spectrum could be put off until early next year. This is bad news for M2Z Networks, which originally proposed the plan. The company is anxious to move ahead with the auction since it is currently subsisting on venture capital.

For more:
- see this article

Related articles:
T-Mobile calls for delay of FCC's free wireless broadband initiative
Andrew Seybold- A New Wireless Opportunity!
Interview with M2Z: Free wireless broadband can work. M2Z interview
FCC looks to fast-track free wireless broadband network initiative. Wireless broadband story

FCC Chairman: D-block, AWS-3 auctions won't happen in 2008

Lynnette Luna — Tue, 15 Jul 2008 11:45:24 -0400

FCC Chairman Kevin Martin said that neither the D-block re-auction nor the Advanced Wireless Services-3 auction will likely happen this year. "I think it's very difficult to [start either auction in 2008] because in both cases the commission sought... additional comments. For us to complete either of the auctions by the end of this year, I think that makes it difficult," Martin was quoted as saying in RCR Wireless News.

During a conference with reporters, Martin said it might be possible to start one of the auctions, most likely the D-block auction, but he didn't believe that would even happen. Comments on the FCC's rulemaking for the D-block re-auction were filed last month with reply comments arriving last week. The D-block band, designed for a public-private partnership, failed to receive the minimum $1.3 billion bid. The FCC is now looking for ways to make bidders feel more secure since they have to negotiate deals with public safety for part of its use. The FCC recently extended the public comment cycle for the AWS-3 rulemaking process to July 25 and Aug. 11 as T-Mobile raised concerns about potential interference with its existing AWS licenses.

For more:
- check out RCR Wireless News

Related stories:
FCC grants more time for comments on AWS-3 auction plans. AWS-3 story
FCC seeks comments on D-block re-auction. D-block story

Roaming rules spark controversy

Sue Marek — Thu, 03 Jul 2008 11:46:59 -0400

Not everyone is happy with last year's FCC rules regarding roaming. The rules require carriers to allow roaming at reasonable rates for the requesting carrier so their customers can roam outside the carrier's network. At issue is the "in-market exception rule," which says that a roaming deal is not required if the competitor holds spectrum rights in an area where it would like to have a roaming agreement for its customers.

Smaller operators without national footprints argue that this is unfair because it can take several years for an operator to build out a network in a license area and in some cases, such as with AWS spectrum, the spectrum is encumbered for a number of years preventing the carrier from building there.

Now two congressmen have weighed in on the battle. In a letter to FCC Chairman Kevin Martin, Reps. Charles Gonzalez (D-Texas) and Mike Doyle (D-Penn) said that the "in-market exception services as a secondary buildout requirement that does not serve our constituents who depend on small and regional carriers to provide competitive choice in the marketplace."

For more:
- see this RCR story

Related story:
Small players want review of roaming deals

FCC provides some insight into ETF rules

Sue Marek — Fri, 13 Jun 2008 11:42:30 -0400

At an FCC meeting yesterday, Chairman Kevin Martin provided some insight into how he would regulate carrier early termination fees. Martin said that he believes there needs to be some federal oversight of termination fees rather than letting states set the rules. He would like to try to establish some rules on ETF this summer but hasn't talked to the other commissioners yet about doing so. Here's a breakdown of how Martin thinks ETFs should be handled:

ETF fees should be based on the cost of the phone that the customer has received from the carrier, i.e. a cheaper phone mean a lower ETF.
Contracts should be for a reasonable length of time and any contract that is renewed should not necessarily have a new ETF.
Customers should be allowed a grace period of 30 days to receive and review their first bill before they are charged a termination fee.

For more:
- see this Washington Post article

Related stories:
Verizon to FCC: nationwide ETF policy is best
FCC will debate ETF during June 12 hearing
FCC may cap early termination fees

FCC delays auction decision

Sue Marek — Fri, 06 Jun 2008 12:14:02 -0400

FCC Chairman Kevin Martin has decided to remove the planned discussion regarding a potential auction of 25 megahertz of unused wireless spectrum from the June 12 meeting agenda. This auction would include 25 megahertz in the 2155 MHz to 2180 MHz band and would require the winning bidder to offer free broadband service under a strict build-out schedule.

Martin says he removed the proposal from the agenda because he wanted to look into concerns raised by some wireless carriers. The CTIA yesterday criticized the FCC in a filing saying that the proposal "upends two decades of spectrum policy in favor of a specifically tailored auction designed to advance the particular business model of a single company."

The FCC's plan was similar to what M2Z Networks proposed back in 2006. The company asked the FCC for 25 megahertz of vacant spectrum in the 2155 MHz to 2175 MHz band to offer free wireless broadband service. The FCC subsequently dismissed M2Z's request. More recently, Rep. Anna Eshoo (D-Calif.) introduced new legislation, known as the Wireless International Nationwide for Families Act, that would direct the FCC to auction unused spectrum, the 2155 MHz to 2180MHz band, and require the winner to offer a free wireless broadband network that reaches 95 percent of the U.S. population within 10 years.

For more:
- see this Silicon Alley Insider report
- read this IDG news service report

Related stories:
FCC mulls another spectrum auction. Read this spectrum auction story.
Will a spectrum auction requiring free broadband services work? Read this spectrum auction editorial

FCC will debate ETF during June 12 hearing

Sue Marek — Tue, 03 Jun 2008 11:44:02 -0400

The FCC has scheduled a hearing on June 12 to discuss early termination fees(ETFs)--the penalties cell phone carriers charge customers that end their contracts early. Much of this hearing could focus on other industries such as cable and Internet, which also charge customers fees when they terminate their contracts early.

FCC Chairman Kevin Martin told the Washington Post that while the ETF issue has been focused on the wireless industry, it could have implications for other industries. Early termination fees were among the five most common complaints by cell phone users, who filed more than 20,000 service-related complaints with the FCC in 2007.

Carriers have pushed the FCC to rule that cancellation fees are part of the rates carriers charge their customers, as opposed to a fee. That type of definition would pre-empt lawsuits that are occurring in state courts.

For more:
- see this article

Related articles:
FCC may cap early termination fee
T-Mobile USA to pro-rate ETFs, too

FCC mulls another spectrum auction

Sue Marek — Tue, 27 May 2008 11:05:36 -0400

FCC Chairman Kevin Martin has scheduled a vote on rules for another spectrum auction. This auction would include 25 megahertz in the 2155 MHz to 2180 MHz band and would require the winning bidder to offer free broadband service under a strict buildout schedule.

It's a similar plan to what M2Z Networks proposed back in 2006. The company asked the FCC for 25 megahertz of vacant spectrum in the 2155 MHz to 2175 MHz band to offer free wireless broadband service. The FCC subsequently dismissed M2Z's request. More recently, Rep. Anna Eshoo (D-Calif.) introduced new legislation, known as the Wireless International Nationwide for Families Act, that would direct the FCC to auction unused spectrum, the 2155 MHz to 2180MHz band, and require the winner to offer a free wireless broadband network that reaches 95 percent of the U.S. population within 10 years.

"We've had a variety of proposals that had come into the commission originally where some people wanted us to give them the spectrum," said Martin in an RCR Wireless News article. The FCC chairman said a vote may be held at the agency's upcoming June 12 meeting, but added it is possible the measure could be approved before that date.

Martin said a licensee of the 2155-2180 MHz spectrum would have to provide a free service tier, and would have to reach 50 percent of the population in four years and 95 percent of the population by the end of the license term.

To read more about the FCC's auction plans:
- check out this article from RCR Wireless News

Related stories:
- Congresswoman proposes free wireless broadband. See this wireless broadband story
- M2Z Networks pushes broadband for the masses. See this M2Z Networks story

Congress blames Martin for FCC's broken process

Thu, 01 May 2008 06:59:58 -0400

A House committee investigating the FCC's management policies has initially concluded that FCC chairman Kevin Martin is largely to blame for what it calls the FCC's broken process. The investigation began late last year after House Commerce Committee chairman John Dingell (D-Mich.) wrote Martin about concerns over the lack of transparency in the FCC's decision-making process.

"We have conducted more than 30 interviews with current and former [FCC] employees as well as industry representatives and private citizens. The bottom line is that the [FCC] process appears broken and most of the blame appears to rest with Chairman Martin," a committee memo stated.

For more on the probe:
- read this article from RCR News

Is AT&T bitter about the C Block?

Wed, 16 Apr 2008 06:59:59 -0400

- Click here for our full coverage of the 700 MHz Wireless Auction -

Is AT&T bitter about the C Block?

Sound bites and dollar signs: That's what keeps our legislative branch humming along. Yesterday, the House of Representatives subcommittee on telecommunications hosted FCC chairman Kevin Martin to discuss the results of the 700 MHz spectrum auction. Three Republican representatives grilled Martin over whether Google "gamed" the system by lobbying to get the open access provisions on the C Block and then not bidding to win.

"Google was successful in gaming the system," Rep. Fred Upton (R-MI) said. The open access provisions were simply a "social engineering" experiment by the FCC that prevented the C-Block from raising billions of dollars more, Upton continued.

Google, of course, did bid on the C Block. The company bid just as it promised it would: until the provisionally winning bid on the C Block had reached its reserve price: $4.6 billion. By meeting that reserve price, Google triggered the open access provisions the company so desired. The FCC, not Google, decided on the reserve price and if it proved (in hindsight) to be too low, then the FCC is at fault for short changing Congress of the extra billions--not Google. Verizon Wireless ultimately bid to win the C Block for $4.7 billion.

Rep. Cliff Stearns (R-FL) and Rep. John Shimkus (R-IL) both followed Upton's lead. Shimkus asked Martin whether Google had "duped" the FCC by bidding in order to trigger the open access rules. Martin assured them that the agency was not duped and that the rules were not put into place to keep any company from bidding.

FCC commissioner Jonathan Adelstein noted that Google did precisely what it had promised to do: Bid enough to trigger the open access provisions. "They put over $4.6 billion of their capital at risk," Adelstein noted.

The 700 MHz auction brought in more than $19 billion, far more than the most optimistic projections of $15 billion in winning bids. The final $19 billion figure is not even counting the D Block, which did not garner enough to meet its reserve price.

So who would have swooped in and driven up the price of the C Block had it been provision-free? Most analysts figured AT&T would compete with Verizon Wireless and Google for the C Block, but the carrier acquired some spectrum from Aloha and bid on other blocks instead. So is AT&T upset about the results?

It may be worth noting that all three of the Republican representatives that grilled Martin yesterday entered office about 14 years ago. The company whose political action committee contributed most to each of their campaigns during the past 14 years? That's right: AT&T. -Brian