Verizon sues regulators overspectrum auction rules

US giant Verizon Wireless launched an appeal against the Federal Communication Commission's final rules for the upcoming auction of radio spectrum, saying the rules establishing so-called open-access conditions are arbitrary and capricious, an Associated Press report said.

The Associated Press report said in a filing to the US Court of Appeals for the District of Columbia Circuit, the company has urged the court to strike down the section of the rules which the agency approved to underpin the sale of 62Mhz of prized radio spectrum in an auction early next year.

It said the rules exceed 'the Commission's authority "&brkbar; and is arbitrary and capricious, unsupported by substantial evidence and otherwise contrary to law.'

FCC commissioners decided to attach two conditions on a large chunk of spectrum being sold in a bid to encourage a potential new entrant into the wireless broadband market, the Associated Press report said.

It stated that whoever buys 22Mhz of the spectrum would have to allow any handset device to be attached to the wireless network they subsequently build and to allow any software application to be downloaded onto handsets over the network, the report said.

Companies like Google and eBay's Skype, had been aggressively pushing the FCC to adopt the conditions, the report further said. Verizon Wireless, meanwhile, had been lobbying equally as hard against the conditions.

Verizon Wireless declined to elaborate further than the filing as to on what grounds its suit is based, the report further said.