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Old 09-26-2007, 07:51 PM
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FCC to change rules on 700MHz auction

After complaints from Verzion and petitions to reconsider the rules for the 700MHz auction from AT&T and Frontline, FCC chairman Kevin Martin may revise them. Frontline is asking the FCC to require that the whinner of a portion of the spectrum be forced to resell it at wholesale prices. “Wholesaling is also the only model a new nationwide wireless network operator could realistically afford to adopt, given the massive costs associated with providing retail service—consider Verizon’s 2,300 retail outlets and its $1.9 billion annual advertising budget,” Frontline stated. Another argument Frontline is concerned with are the reserve bid prices, as they believe they are too high for small business wholesalers. AT&T has extracted their initial support from the open access rule. AT&T is specifically fighting against the measure to force the winners to build a nationwide broadband network for public safety agencies.

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