Add to del.icio.us     Digg this

Sep. 9, 2008

On September 23, the FCC will try again to sell its 700 MHz licenses for a national public safety network.

Wireless carriers will one more time have the opportunity to bid and possibly acquire chunks of that spectrum which they don't seem to keen in acquiring so far.

The original spectrum auction, in which the winner would be required to build a network and give free access to emergency responders, saw no bids came close to the FCC’s $1.3 billion reserve price.

Reactions were predictable to say the least.

Claims of impropriety to alternative plans to detailed analysis of the proposed safety network’s prospects for success are enough deterrents to discourage even the most optimistic carrier.

In the FCC's proposed 'new' plan, the commission itself would run simultaneous auctions. The first would be for the whole D-block of spectrum at a lower reserve price of $750 million, while the second would be for 58 regional licenses (in 58 markets) used for either LTE or mobile WiMAX.

If the regional bidders collectively offer more money than any nationwide bidders, then those companies would advance to a second round, in which the spectrum would be allocated for LTE or mobile WiMAX based on which kinds of bids raise more money or cover more of the nation’s population.

It’s unclear what would happen if one technology’s bidders raise more money but the other technology’s bidders serve a greater population.

But FCC officials were quick to point out that the goal is to get the spectrum into the market – not to raise the most money.

In the aftermath or Hurricane Katrina in 2005 and a few similar disasters, the FCC has no other choice than to make certain that wireless communications are available at all times during an emergency.

The 700 MHz licenses are meant to serve that unique purpose.

Add to del.icio.us     Digg this

    This article was featured on Business 5.0 and on Tech Blog.

Source: The FCC.