D Block

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

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."

Is the D-Block dead?

Sue Marek — Wed, 24 Sep 2008 10:49:19 -0400

Whether you are an opponent of the white space debate or an advocate of the re-auction of the D-Block spectrum, some D.C. insiders believe that chances are slim that a decision on either issue will be made before year-end. One analyst with Stifel Nicolaus & Co says that she doesn't think either controversial project will be finalized this year. And if they are finalized, she thinks they could easily be reversed by those appointed by the next administration. Article

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

FCC seeks comment on failed D-block auction

Lynnette Luna — Thu, 29 May 2008 12:00:42 -0400

The FCC has given a June 20 deadline for receiving comments on how it should re-auction the D-block 700 MHz spectrum. The spectrum, which was reserved for a public/private network, failed to receive the minimum bid amount during the recent 700 MHz auction.

Already, the FCC has received comments from the mobile industry, public safety and academics. Most comments focus on how D-Block rules can be crafted to attract bidders that have the funds to build and operate a national wireless broadband network serving public safety.

Top public-safety groups and some Congressional members have voiced support to continue with the public-private partnership idea, offering first responders priority access while serving the general consumer. It appears the reserve price, which was previously $1.3 billion, will likely be changed.

For more about the D-block spectrum:
- read this RCR Wireless News article

Related stories:
Congress takes on failure of D-block auction. See this D-block auction story
Frontline closes doors; D-block auction in question. Read this Frontline story

Report: Lease payments tanked D Block auction

Mon, 28 Apr 2008 06:59:57 -0400

A report from the FCC inspector general concluded that the requirement for lease payments of about $500 million contributed to the failure of the D-block auction. No serious bidders emerged for the spectrum, which was reserved for a public-private partnership that would give first responders a national wireless broadband network.

The inspector general's report was based on interviews with FCC staffers, public safety and companies such as Frontline Wireless--which had planned on bidding for the spectrum but couldn't raise enough money. The report concluded that demand from public safety, via Cyren Call, which was appointed to manage negotiations, discouraged bidding. The report also called into question the commercial viability of such a public-private partnership given the way the FCC constructed the rules for the band.

According to the report, "Cyren Call's statements regarding a $50 million-per-year payment was not the deciding factor in Frontline's decision not to bid on the D-Block, but was merely one of many concerns it had regarding the auction." -Lynnette

For more about the inspector general's report:
- check out this article from Dow Jones

Related articles:
Cyren Call says it's not to blame for Frontline's end. D-block report
Frontline closes doors; D-block auction in question. Report on Frontline

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

Leap: VZW, AT&T maybe shouldn't bid on D Block

Tue, 15 Apr 2008 06:59:56 -0400

Leap Wireless' SVP and general counsel Robert Irving testified today before the House Subcommittee on Telecommunications and the Internet about Leap's take on the outcome of the 700 MHz auction.

"We have been concerned in recent years with the ever-increasing consolidation of spectrum assets and market share into the hands of the nation's largest wireless carriers, and the consequences that this portends for Leap and other small and mid-sized carriers," Irving said, according to his prepared remarks.

Irving outlined a few lessons learned from the 700 MHz auction:

One disturbing trend in wireless: Two of the largest carriers increased their vast spectrum holdings thanks to the auction. Verizon Wireless and AT&T contributed $16.3 billion of the total $19.6 billion raised during the auction.
Meanwhile, Leap and Alltel won no licenses, while MetroPCS won one license.
The auction provided limited bidding opportunities for small and mid-sized carriers and little headway was made in bringing new entrants into the industry.
The creation of large geographic areas in the C Block made it difficult for smaller and mid-sized carriers to compete.
The complex public/private partnership framework for the D Block, especially the extremely stringent geographic build out requirements, made the spectrum slice highly unattractive.
The FCC should examine whether breaking the D Block into smaller segments makes better sense and whether AT&T or Verizon Wireless should be allowed to bid on it given the large swaths of 700 MHz spectrum those carriers already have.

For more on Irving's remarks:
- take a look at the entire testimony

Andrew Seybold: What Was and Was Not at CTIA Wireless 2008

Andrew M. Seybold — Wed, 09 Apr 2008 10:52:17 -0400

CTIA Wireless 2008 (held last week in Las Vegas) is the largest of CTIA's two annual shows. Each year, numerous reporters flock to this show to discover what is hot and what is not, and perhaps even what was missing. This year was no exception. What was missing was meaningful dialogue about the results of the 700 MHz auctions, as Sue Marek pointed out in one of her editorials. The FCC kept the clamps on everything by not lifting the anti-collusion rule until April 3, the day the conference ended. As a result, we did not learn much about what the 700 MHz winners have planned, although on the 4th AT&T Wireless and Verizon Wireless sent out press releases saying their 700 MHz spectrum would be used for 4th-generation systems based on LTE (Long Term Evolution). But discussion about the failed D block shared public/private sector spectrum auction was not permitted, though I am sure everyone associated with it has his or her own ideas (including me, see my Commentary at www.andrewseybold.com).

Nevertheless, there was plenty of interesting things at CTIA. First, we saw handsets from UTStarcom, Samsung and others to support Leap's Cricket AWS properties that are being rolled out (the CDMA handsets support 1900 MHz as well). Meanwhile, other handset vendors including Nokia have announced GSM/UMTS phones for the T-Mobile UMTS network that will be built on the AWS spectrum. It also seems that everywhere you went, in every booth you visited where handsets were being shown, there was at least one IPK (iPhone Killer), although these devices lack the ecosystem that is so much a part of the success of the iPhone.

Location-based services are gaining in popularity and there was a lot of noise about GPS and non-GPS LBS wireless chipsets being embedded in consumer GPS devices to add instant updates and even traffic reporting services. The best traffic service I have heard of was not being demonstrated at the show, but in a press release from IntelliOne and Rogers Communications about the first commercialization of IntelliOne's Traffic-Aid system. I believe this is the gold standard of traffic reporting. IntelliOne monitors every phone on a wireless network, stripped of ESNs and phone numbers for privacy, locates the phones and, if they are on a roadway, be it a freeway, secondary or neighborhood roadway, it tracks the direction and speed of the phone. By doing this, it can update traffic every thirty seconds as long as there is wireless services from that network provider. Look for this service to be rolled out in the United States shortly.

Meanwhile, in FCC Chairman Martin's speech during the keynote address on April 1, he called for a renewed look at E911 (Enhanced 911) accuracies as reported by the network operators to the PSAPs (Public Safety Answering Points). Companies such as True Position that has been the leader in TDOA (Time Difference Of Arrival) have taken up the challenge and are combining an updated version of TDOA, GPS at each cell site and GPS in handsets to provide for a hybrid method of location that can be used for better E911 location determination and better navigation accuracy. The LBS ecosystem is gaining momentum as these new products and services come online and over the next few years we will see LBS become a mainstream application that will soon be taken for granted in our phones, just as most of us have come to expect a camera.

WiMAX was all over the floor too, partly because the WiMAX community has learned how to increase the buzz surrounding WiMAX and partly because this year and next will be "truth time" for the WiMAX community. Will it really perform as well as they say it will? Will you really get 30 KMs of coverage per cell site at 2.5 GHz? Will it become a ubiquitous contender in the mobile data (and soon voice) space? What will happen to Sprint's Xohm and Clearwire? Will they make another deal and will some cable companies join them? Is there a business model for WiMAX outside of rural areas or underdeveloped countries where there is no existing infrastructure?

There are those who believe WiMAX will be vindicated and its performance will be everything promised and more, and then there are those of us who believe it has been so over-hyped it will be a disappointment to network operators that have deployed it in good faith. The story will be told in 2008 and 2009.

One thing that was not at the show this year was a "buzz"-a new product or category that took everyone by surprise and promised to change the wireless world as we know it. Sure, there was far too much discussion of open access, and there were many developers showing some really great programs, but there was no real buzz, just an air of excitement. More spectrum (AWS) and now 700 MHz means more business for tower companies, infrastructure companies, handset makers, software developers and chip companies. So there is reason to be optimistic.

When I worked as a sales engineer for some of the leading two-way radio companies, the worst economic times were the best times for us. Why? Because communications enabled companies to do more with less, to route their trucks more effectively and eliminate the need to add trucks or people for service. Using voice communications (in those days) they were able to get more out of what they already had. This down period in our economy, coupled with new spectrum and 3G and 4G data services in addition to voice will promote more growth in our industry.

While there wasn't a real buzz at CTIA Wireless 2008, there was buzz about the new opportunities that await us all between now and next year's show.

Andrew Seybold is an authority on technology and trends shaping the world of wireless mobility. A respected analyst, consultant, commentator, author and active participant in industry trade organizations, his views have influenced strategies and shaped initiatives for telecom, mobile computing and wireless industry leaders worldwide.

P.S. Join Sue Marek, Andy and Linda Barrabee of the Yankee Group on Thursday, April 10 at 2 p.m. EST for a Webinar on "The newsmakers of CTIA." Sign up here.

What does public safety do now?

Mon, 24 Mar 2008 07:59:59 -0400

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What does public safety do now?

The 700 MHz auction ended last week, with Verizon and AT&T emerging as the big winners and public safety emerging as the big loser. The D Block, which was designed to offer a public/private partnership that would serve both consumers and public safety, giving them priority access during emergencies, failed to meet its $1.3-billion reserve price. Subsequently, the FCC de-linked the D Block from the rest of the auction and has plans to make the spectrum available before the DTV transition in February of next year.

The question is, will the FCC try this public/private partnership once again? If it does, it needs to make the terms more attractive for an entity willing to bid on the spectrum. A $1.3-billion reserve price is quite a risk for any company embarking on this unproven strategy. Clearly, investors see it as a risky proposition. Frontline had planned on building this nationwide, high-speed wireless network for public safety officials, but even with the backing of L. John Doerr of Kleiner Perkins Caulfield & Byers, as well as other supporters, the company raised enough for the $128 million down payment, but not enough for the $1.3 billion reserve price on the spectrum. Subsequently, Frontline closed its doors before the auction began.

If the FCC changes its terms and creates almost a spectrum give-away to the entity willing to build this public/private network, you can bet we'll see protests and legal maneuverings from the winners who bid billions to secure their spectrum. Meanwhile, public safety once again languishes, with no solution in sight to the interoperability problem that has been plaguing that industry for years. -Lynnette

Auction Results: Verizon Wireless wins the C-Block, AT&T and Echostar take smaller slices

Brian Dolan — Thu, 20 Mar 2008 16:08:56 -0400

As predicted, Verizon Wireless was the big winner for the 700 MHz auction after winning the UpperÃ‚Â C Block of spectrum, which is laden with open access provisions. Google did not win any licenses. Satellite television company EchoStar subsidiary FrontierÃ‚Â won a significant amount of licenses in the E Block--enough to give the company a nationwide footprint. Verizon Wireless not only won the coveted C Block, but also most of the A Block and 77 licenses in the B Block, which contained the smallest licenses in the auction. For its part, AT&T managed to scoop up 227 of the smaller slices of spectrum.

Verizon Wireless ended up winning seven of the eleven pieces of the C Block, butÃ‚Â the other fourÃ‚Â regional slices of the spectrum in that block went to other bidders. Triad 700 won the Alaska and Puerto Rico/U.S. Virgin Islands regional C Block slices for $1.78 million and $3.12 million, respectively. Small Ventures USA won a piece of the C Block that covers a part of the Gulf of Mexico for $1.05 million. Club 42 CM Limited won the C Block slice that covers Guam, Northern Mariana Islands and America Samoa with a $550,000 bid.

As part of the announcement, the FCC de-linked the D Block, which failed to meet its $1.3 billion reserve price, from the other four blocks. The D Block had special provisions for a public-private network that would benefit public safety workers. While the FCC plans to make the spectrum available before the DTV transition in February of next year, it said it has no immediate plans to re-auction the spectrumÃ‚Â in Auction 76, which was the original contingent plan.

For the entire list of winning bids and bidders:
- check out this document from the FCC (.pdf)

700 MHz spectrum auction: That's a wrap!

Brian Dolan — Wed, 19 Mar 2008 09:56:50 -0400

After 261 rounds of bidding and more than $19.59 billion in provisionally winning bids, the 700 MHz auction (officially Auction 73) is over. Four out of the five spectrum blocks achieved their reserve prices, which enabled the auction to more than double expected revenues: the congressional estimate for the auction was $10.2 billion. During the past 15 years the FCC has conducted 68 spectrum auctions, which collectively generated $19.1 billion. Not only did the 700 MHz auction raise more money than any FCC spectrum auction before it, the latest auction managed to raise more than every other auction combined. The proceeds from the auction will be transferred to the U.S. Treasury by the end of June, and, according to the FCC, the money raised will support public safety and the digital television transition.

The four spectrum blocks that met their reserve prices were the Upper C Block, the A Block, B Block and the E Block. The winning bids for theÃ‚Â C Block were on the 12Ã‚Â regional licenses that make it up rather than the nationwide package. TheÃ‚Â 12 bids total $4.75 billion,Ã‚Â more than the C Block's reserve of $4.6 billion. Provisionally winning bids on the A, B, and E Blocks were $3.96 billion, $9.14 billion and $1.27 billion, respectively. Those three blocks collectively more than doubled their reserve price of $8.72 billion.

The D Block, of course, languished during the 700 MHz spectrum auction, with only one bid during the first round. Because the bid was well under the block's $1.3 billion reserve price. In a statement yesterday, FCC Chairman Kevin Martin said that "the FCC is now evaluating its options for this spectrum" and that "the Commission remains committed to ensuring that we work to solve public safety's interoperability challenges." No word yet on whether the FCC will start Auction 76, the Plan B auction which was to take place after Auction 73 in the case that a spectrum block failed to meet its reserve price. The FCC will have to decide which rules if any it would remove from the D Block and/or what it's new reserve price should be.

The FCC will announce the winning bidders in the coming weeks.

Defining success for the 700 MHz auction

Wed, 19 Mar 2008 07:59:59 -0400

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Defining success for the 700 MHz auction

After 54 days and 261 rounds of bidding the usual pomp and circumstance that surrounds spectrum auctions understandably dies down, but now that the bidding is over in the 700 MHz auction the industry will once again turn its attention to what could be a watershed moment for the wireless industry.

Could be, but, probably won't be. Analysts seemed to have reached a consensus that either Verizon Wireless or AT&T has won the coveted C Block of spectrum, which is laden with open access provisions that Google lobbied the FCC to implement. Bloggers on-site at the Verizon Wireless Open Development Conference today claim that the carriers' onstage presenters hinted that it had won the C Block through well-timed smirks and subtle chit-chat. The speculation, of course, is more fodder for the rumor mill, but the time for speculation is almost over. The FCC is expected to announce the winners of the auction within the next couple weeks.

The FCC, the incumbent carriers and Congress will certainly see the 700 MHz auction as a smashing success for all parties. The FCC managed to raise more money than expected--doubling reserve prices in some cases--even though it implemented special rules on some of the spectrum blocks. The incumbent carriers are largely rumored and favored to have won the critical spectrum blocks. Congress, of course, is happy that the FCC raised close to $20 billion to fill its coffers.

But if the 700 MHz auction did not attract a new entrant--like a Google--was it really a success? Perhaps even more concerning, the FCC's auction failed to raise the $1.3 billion reserve price for the D Block of spectrum, which was set aside for a public-private network that would solve public safety interoperability problems nationwide.

Twice the money but two key goals may not have been accomplished. So will the 700 MHz auction be remembered as a smashing success or an epic failure? Chances are: a little from column A and a little from column B. What do you think? -Brian

700 MHz auction: That's a wrap!

Wed, 19 Mar 2008 07:59:58 -0400

The four spectrum blocks that met their reserve prices were the Upper C Block, the A Block, B Block and the E Block. The winning bids for the C Block were on the 12 regional licenses that make it up rather than the nationwide package. The 12 bids total $4.75 billion, more than the C Block's reserve of $4.6 billion. Provisionally winning bids on the A, B, and E Blocks were $3.96 billion, $9.14 billion and $1.27 billion, respectively. Those three blocks collectively more than doubled their reserve price of $8.72 billion.

The FCC will announce the winning bidders in the coming weeks. -Brian

700 MHz Auction limps along

Tue, 19 Feb 2008 06:59:55 -0500

After 83 rounds, the 700 MHz auction is limping along with a just a handful of small bid increases on minor pieces of spectrum. The last few rounds have seen increases of $3 million to $5 million in new bids or about 0.03 percent change in the total amount raised by the FCC.

It appears the C-Block portion is over as the bidding has stopped at $4.7 billion. The D Block, the spectrum reserved for a private/public partnership for public safety, doesn't have any qualified bids. So far, the auction has a total of $19.5 billion in bids.

Now everyone is sitting on the edge of their seats wondering who walked away with most of the C Block spectrum. And the FCC is wondering what went wrong in the D-Block auction.

For more about the auction:
- read this article from TelecomWeb
- check out our 700 MHz coverage

Related articles:
C Block meets its reserve, open access sticks Report
New rule should end auction soon Report

SPOTLIGHT: FCC commish will relook at D Block

Mon, 11 Feb 2008 06:59:52 -0500

FCC commissioner Jonathan Adelstein said he would look into rumors of shadowy deals that led to the collapse of Frontline Wireless and the subsequent stalled bidding on the 700 MHz auction's D Block, which has so far failed to meet its reserve price of $1.33 billion. Article

FCC: 700 MHz Auction to raise more than any other

Fri, 01 Feb 2008 06:59:55 -0500

After 23 rounds of bidding, the 700 MHz auction has brought in nearly $17 billion in provisionally winning bids, a total that exceeded FCC expectations. Originally, the FCC expected total winning bids to fall between $10 billion and $15 billion. The commission needed to ensure that the auction raised at least $10 billion because Congress had already allocated that much of the proceeds from the auction. The $6.9 billion (and counting) leftover is profit for the Treasury Department.

"It will probably exceed any other auction that we have had in the past," FCC chairman Kevin Martin said at a press conference yesterday.

During the 17th round yesterday morning, the C Block of spectrum met its reserve price of $4.6 billion with a bid that topped $4.7 billion. Meeting that target ensured that the open access provisions on the block will go into effect. The D Block, however, continues to languish with only one $472 million bid from the first round of bidding last week. The question remains: Now that the FCC has met and exceeded its overall reserve price for the auction, will the D Block have to meet its $1.33 billion reserve price? Or did one bidder get an incredible deal?

For more on the auction:
- read our continuously updated coverage here
- also read this interview with Skype's Chris Libertelli about the auction results

700 MHz Auction: C Block meets its reserve, open access sticks

Brian Dolan — Thu, 31 Jan 2008 11:06:27 -0500

After a couple rounds of stalled bidding, the C Block's provisionally winning bid is now at $4.7 billion, about $100 million over the reserve price that the FCC set for the block of spectrum. Since the reserve price was met, the FCC will not have to re-auction the block and its special rules: open access for any device and any application will have to be implemented on the winning bidder's future 700 MHz network. If the price of the provisionally winning bid goes up in the next or subsequent rounds, then it is clear that there are more than one bidders for the C Block. It was possible up until this point that Google was bidding on the C Block to drive it up past the reserve price, in order to ensure the open access rules came to fruition.

As has been the case since the first round of bidding, bidders won't touch the D Block with a ten foot pole. The public-private network provision on the spectrum block, which requires the winning bidder to help public safety officials construct and operate a wireless network for homeland security, has only received on bid. The $472 million provisionally winning bid, however, is only about a third of the $1.33 billion reserve price that the FCC set for the D Block. The only chance the D Block has at this point is for the loser of the C Block (if there is more than one company bidding on it) to snap up the D Block as its consolation prize. -Brian

700 MHz Auction: C Block meets reserve

Thu, 31 Jan 2008 06:59:57 -0500

After a couple rounds of stalled bidding, the C Block's provisionally winning bid is now at $4.7 billion, about $100 million over the reserve price that the FCC set for the block of spectrum. Since the reserve price was met, the FCC will not have to re-auction the block and its special rules: open access for any device and any application will have to be implemented on the winning bidder's future 700 MHz network. If the price of the provisionally winning bid goes up in the next or subsequent rounds, then it is clear that there is more than one bidder for the C Block. It was possible up until this point that Google was bidding on the C Block to drive it up past the reserve price, in order to ensure that the open access rules came to fruition.

As has been the case since the first round of bidding, bidders won't touch the D Block with a ten foot pole. The public-private network provision on the spectrum block, which requires the winning bidder to help public safety officials construct and operate a wireless network for homeland security, has only received one bid. The $472 million provisionally winning bid, however, is only about a third of the $1.33 billion reserve price that the FCC set for the D Block. The only chance the D Block has at this point is for the loser of the C Block (if there is more than one company bidding on it) to snap up the D Block as its consolation prize.

Total provisionally winning bids now stand at $13.7 billion, which is on the higher end of the FCC's hoped for $10 billion to $15 billion target. -Brian

Click here for the latest news roundup for the 700 MHz Auction.

700 MHz Auction: Total bids meet $10B reserve

Wed, 30 Jan 2008 06:59:56 -0500

After the fourteenth round of the 700 MHz auction, the FCC is within its minimum reserve range of $10 billion to $15 billion for total provisionally winning bids. The fourteenth round brought in more than 1,000 bids and the total for bids now stands at $10.2 billion.

The C Block of spectrum, which has open access rules attached to it, however has not yet reached its minimum reserve price of $4.6 billion: Its price tag currently stands at $4.3 billion. It is likely that it will reach the reserve price today, which means that Google's efforts to impose open access rules on the nationwide block of spectrum will stick.

Meanwhile, the D Block of spectrum continues to languish after receiving a single $472 million bid during the first round. The FCC set a minimum reserve price of $1.3 billion on that block, which would require the winning bidder to build out a public-private network with public safety officials.

For more on the auction:
- read our dedicated coverage here