More backlash on Martin’s 700 MHz plans

Federal Communications Commission Chairman Kevin Martin’s 700 MHz plan has triggered an angry backlash, with the agency chief suddenly finding himself squeezed by the cellular industry and others vehemently opposed to open access and those asserting the draft rule does not go nearly far enough to remove wireless network restrictions preventing unfettered connectivity of third-party devices and applications on a wholesale basis.
As such, Martin may have opened a Pandora’s Box of sorts and dramatically reset a 700 MHz debate bound by strict statutory timelines.
The FCC chairman’s draft order would permit a level of open access on two 11-megahertz blocks of 700 MHz spectrum, but licenses apparently would not be national and would not be subject to a wholesale mandate. In addition, the Martin plan sets aside for bidding a separate national 10-megahertz block that would subject the winning bidder to work with public safety on adjacent frequencies to improve first-responder communications-a weak link highlighted in emergency response efforts following terrorist attacks in 2001 and Hurricane Katrina several years later.
The American Conservative Union blasted the GOP FCC chairman, issuing a call to arms by bombarding the office’s of Martin and fellow Republican commissioners, Deborah Taylor Tate and Robert McDowell, with complaints. The ACU framed the issue in macro-political terms, apparently hoping to energize the Republican Party’s conservative base over the issue.
“Would it surprise you to know that MoveOn.org, Hillary Clinton, John Edwards, Barack Obama, Arianna Huffington and many of the most liberal voices in the Democratic Party share a common belief that government-not the free market-should regulate growth and innovation regarding the Internet and wireless communications?” Of course not!” stated ACU Executive Vice President J. William Lauderback. “What should surprise you is that the Republican chairman of the Federal Communications Commission agrees with them. That’s right, the Republican Chairman of the FCC agrees with the Far Left Liberals! ” Lauderback listed phone numbers of the three GOP commissioners in his e-mail press release.
Yesterday Steve Largent, president of cellphone industry association CTIA, slammed Martin’s 700 MHz draft ruling. The other four commissioners are expected shortly to receive a copy of the Martin plan, which will cover a broad range of issues such as buildout requirements, the overall band plan and auction methodology.
Martin’s 700 MHz blueprint selectively draws on proposals by Frontline Wireless L.L.C. and Cyren Call Communications Corp., but otherwise bears little resemblance to them.
“For open access to benefit American innovation and consumers, it has to have meaning, including no blocking of content or locking of features.
Half a loaf is no loaf,” said Frontline Wireless Chairman Janice Obuchowski. “Frontline insists that the upcoming auction rules for 700 MHz benefit first responders with a nationwide, new network buildout for public-safety interoperability, based on a public-private partnership.”
Others were more blunt, with some critics asserting the Martin plan was no more than a publicity stunt-one that succeeded in producing some initial favorable press, but also could ultimately backfire on him.
“Because the plan does not contain a no-retail component, it will be relatively simple for the large wireless carriers to evade the spirit, if not the letter, of open-access rules by pricing their retail services in a way that makes true open access economically unviable. Moreover, regional licenses are basically useless for a new entrant provider trying to establish a nationwide footprint to compete with the incumbents,” said Amol Sarva, head of the Wireless Founders Coalition for Innovation.
Internet giant Google Inc. strongly suggested it will not compete for any of the 60 megahertz in the 700 MHz auction unless meaningful open-access rules are adopted by the FCC. The auction is expected to generate $12 billion to $15 billion, though opponents of open access claim the U.S. government will receive less money if controversial conditions are attached to licenses.
Meantime, the 700 MHz debate moved to Capitol Hill this morning.
“The FCC has a rare chance to foster similar innovation in the wireless marketplace in the upcoming auctions. As I have suggested previously, the FCC should seize this opportunity to create an open-access opportunity for wireless service in this auction, and should insist upon Carterfone-like principles applying to a significant portion of the licenses to be offered,” stated House telecom subcommittee Chairman Edward Markey (D-Mass.). “Recent comments by FCC Chairman Martin that he is poised to embrace these policies in a proposal for auction rules is a step forward and welcome news. I encourage the FCC chairman and his colleagues to maximize the benefits these policies can bring to consumers and the high-tech economy in their upcoming decision.”
Rep. Fred Upton (R-Mich.), ranking member of the telecom panel, disagreed.
“No matter how you slice it, forced network neutrality smothers investment in a competitive market, and in the end would leave consumers worse off and with fewer choices. . And if the FCC or Congress wanders down the wrong path and makes the wrong policy choices, the ability of wireless to live up to its potential as the ‘third pipe’ will be greatly hindered or eliminated altogether,” Upton stated.
Public-safety representatives have yet weigh in on Martin’s 700 MHz, though they plan to meet with FCC officials today.