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D-Block auction moves forward, but details still under discussion : Wall Street meltdown hangs over proceedings

The Federal Communications Commission voted to put in play a new 700 MHz auction plan to foster improved public-safety and commercial wireless broadband communications. However, several commissioners raised concerns over whether potential bidders would be able to secure financing in light of Wall Street’s collapse.
The FCC doggedly continues to wrestle with how to bring interoperability and broadband capabilities to the country’s first responders in the aftermath of its failure to attract a bidder for a hybrid D-Block license that carried a minimum $1.3 billion price tag in the 700 MHz auction earlier this year. As such, the agency again is seeking public comment – under a lengthier timetable than originally planned due to congressional pressure – on a revised package that attempts to inject more clarity and certainty into a process designed to attract private-sector capital without unnecessarily compromising strict public-safety communications requirements.

Relaxed buildout mandates
Under the new plan, the FCC’s D-Block auction would provide options for national and regional licensing subject to relaxed buildout requirements and performance benchmarks at various intervals throughout the 15-year license term. Long Term Evolution and WiMAX technologies could be used by winning bidders of licenses in 58 public-safety regions.
In reality, though, everything is still on the table for discussion. The FCC is seeking input on the role and makeup of the Public Safety Spectrum Trust Corp., the public-safety broadband licensee, and its agent, Cyren Call Communication Corp., in order to avoid conflicts of interest.
“A primary goal of the commission is to promote the deployment of a broadband network that provides maximum coverage to first responders across the country,” the FCC stated. “Today’s notice proposes to retain a public/private partnership framework for the 700 MHz band absent other sources of funding.
It is unclear whether the FCC can craft final D-Block rules by year’s end, a goal sought by FCC Chairman Kevin Martin that would enable the D-Block re-auction to be conducted by next June. In today’s action, the FCC asked for public comment on when the auction should be held after final guidelines are approved.
Commissioners Michael Copps, one of two Democrats on the Republican-led FCC, expressed doubts about whether the agency has managed to get a firm grip on D-Block dilemma and the ability of a winning bidder or bidders to secure financing in light of Wall Street’s collapse and the still-unknown fallout that the Bush administration and Congress are working to limit.
“The PSST is hopeful that today’s progress will result in rules bringing about the right partner or partners to build a shared public safety/commercial network,” said PSST Chairman Harlin McEwen. The FCC’s latest plan proposes changes to PSST’s organizational structure “to enhance its operational efficiency and transparency.”
The PSST and much of the public-safety community support a national licensing approach for the D Block.

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