Under pressure

As the 700 MHz auction nears, the intensity over auction rules is heating up. And indeed, the legacy of this Federal Communications Commission could very well ride on the success-or problems-of this auction.
Potential bidders are trying to persuade the commission to write the rules in their favor. For example, Alltel, now a pureplay wireless carrier, is urging the FCC to auction smaller slices of spectrum so that the largest companies (and especially Alltel’s competitors, local exchange carriers with wireless footprints) don’t gobble up the finite resource. Others, like Internet giant Google, favor a nationwide license. And groups interested in aiding public safety-and making a profit for themselves at the same time-are asking for a combination network that would meet the needs of commercial operators and first responders. Google is going a step further in asking the government for the ability to re-auction slices of spectrum to the highest bidder.
It’s often been stated that government regulations can’t keep up with lightning-speed changes in wireless technology. In the case of 700 MHz posturing, if the FCC were to adopt some of these proposals, the technology would have to step it up to keep pace with the regulations. For instance, two of the most controversial ideas at 700 MHz-the ability to auction spectrum in real time and operating a shared public/private network-have yet to be proven beyond the concept stage. Google’s proposal would require software-defined radios built into base stations, as well as new handsets with chips that can sniff out available frequencies. And then there is the matter of whether carriers would buy that spectrum. A few years ago, the FCC allowed carriers to lease unused spectrum to others, creating secondary markets. But those efforts largely have been ineffective.
As for a public-safety, private commercial joint operation, I have a difficult time believing it would be a win-win situation. Wireless carriers and public-safety organizations have been on opposite sides of the spectrum fence for years, whether the issue is E911, cell-broadcast technology or just about anything else. What’s to think this would be a cooperative process once the shine of winning the spectrum was over?
The FCC will be hard pressed to hammer out auction rules that satisfy everyone. And trying to make auction rules that address today’s needs and the nation’s future needs is nearly impossible. It took more than 10 years to free up this spectrum for auction, and in the next few months, the government is tasked with getting it to the companies that will best serve U.S. consumers and businesses. From idea to execution, the agency will have weighty decisions to make. Good luck!