Cyren Call Communications Corp., unable to convince policymakers to divert half of the auction-bound 700 MHz spectrum for a national public safety/commercial wireless broadband system, is exploring various options that could still make it a player long after bidding ends. The strategy pivot could come at the expense of another startup looking to solve public safety’s communications woes in a profitable way through a public-private approach: Frontline Wireless L.L.C.
According to public statements and interviews with key stakeholders last week, Cyren Call may push for key 700 MHz auction rules that could coincide indirectly with the cellular industry’s position that bidding be attractive to wireless carriers.
Frontline plan up for comment
The Federal Communications Commission will begin accepting public comment next week on, among other things, Frontline’s 700 MHz plan. The proposal would allow 10 megahertz of the 60 megahertz of spectrum in the 700 MHz band to used in conjunction with 12 megahertz of public safety spectrum in the 700 MHz band for a national wireless broadband network, one driven by first responder requirements and technical specifications, but capable of supporting mobile phone and other commercial wireless services.
Frontline’s open network architecture feature has attracted support from consumer and special interest groups, including some keen on seeing the net neutrality model integrated into the wireless space. The mobile phone industry strongly opposes the Frontline proposal.
Christopher Guttman-McCabe, vice president of regulatory affairs at cellphone trade association CTIA, said open access and other conditions in the Frontline plan amount to poison pills that would dissuade everyone but Frontline from bidding on the 10 megahertz block. Frontline’s critics say that is precisely the point. They assert the FCC should not write auction rules that essentially endorse a single company’s business model in a way that all but guarantees Frontline a national wireless license at the auction, possibly at a discounted price.
Cyren Call counters
Cyren Call plans to urge the FCC to craft auction rules that would induce aggressive bidding on the 10 megahertz commercial block, a position that could have it joining the cellular industry in recommending that Frontline plan components deemed onerous by cellular carriers be shunned in final 700 MHz guidelines.
“If additional spectrum for public safety moves in the direction of an auction, Cyren Call encourages a playing field representing a wide variety of participants, including incumbent wireless companies,” said Cyren Call Chairman Morgan O’Brien at an industry roundtable sponsored by the Department of Homeland Security’s Office for Interoperability and Compatibility. “A broad array of players will ensure the best outcome for public safety and we would encourage the FCC to consider this as they review options for service rules. Any encumbrances on the spectrum must have a positive impact on public safety. We shouldn’t be experimenting with the public resource that public safety will use to protect and save lives.”
Why? Because Cyren Call, still a potential agent for public safety going forward, may prefer doing business with an established national carrier-AT&T Mobility, Verizon Wireless, Sprint Nextel Corp. or T-Mobile USA Inc.-rather than with an unproven startup without an existing infrastructure and lacking a strong spectrum position.
“We agree with Morgan. To the extent the commission can provide incentives or remove disincentives for carriers to work with public safety, we’re strongly in favor of it,” said the CTIA’s Guttman-McCabe. Still, it appears doubtful the cellular industry can support any 700 MHz band plan and licensing rules with weighty public safety conditions.
However, the possibility remains that Cyren Call could lead the negotiating team for public safety-one half of the public-private partnership-if Frontline successfully bids for the 10 megahertz of spectrum.
While being the public safety representative that negotiates with the winning 10 megahertz bidder is the preferred path for Cyren Call, the company has not ruled out making a play for the spectrum at the 700 MHz auction later this year.
The public safety community has its own challenges in arriving at a consensus-presenting a united front, if possible-in comments headed to the FCC by May 23. Reply comments are due May 30.
The 700 MHz auction, which could raise $15 billion for the U.S. Treasury, is expected to begin in December.
