FCC Not Paying Attention to Broadband Market

The Broadband Plateau in the U.S. FCC Finally Speeds Up Broadband

June 11th, 2008

The wireless broadband market took a giant step back from free metro wireless networks last year. Instead service providers and municipalities have leaned more toward funded, applications-based networks for such things as public safety, utility monitoring, healthcare and government operations. (Read Last Mile's story on wireless mesh networks for more.)

However, does this scaling back from free metro networks preclude the idea of a nationwide free wireless network? The FCC's Kevin Martin apparently doesn't think so. (Thanks to On the Mark for the source.) Martin says that the FCC will auction 25MHz in the 2155-2180 MHz spectrum, and the winning bidder will have to provide a free wireless network to 95 percent of the country in 10 years.

Meanwhile, the wireless association CTIA has denounced the idea in a June 5 filing to the commission.
"History has proven that prescriptive auction regulation ultimately undermines the public interest, rarely achieves its advertised benefits and is a poor substitute for allowing the marketplace to function freely," the CTIA said in the FCC filing. "The public interest is best advanced by the Commission's long-standing flexible-use spectrum policy, which provides spectrum licensees the freedom to innovate and respond to consumer demands."

FCC's prescriptive auction of the D Block in the recent 700 MHz auction failed to meet the reserve price, and the commission is still debating how to proceed with a re-auction.

In a sustained commitment to address the nation’s public safety communications challenges, the FCC is seeking public comment on how the commission should proceed with the reauction and licensing of the 700 MHz D Block spectrum while maximizing the public safety and commercial benefits of a nationwide, interoperable broadband network.

In July 2007, the FCC adopted rules for the 700 MHz Band spectrum that included the creation of a 10-megahertz license in the D Block to be part of a 700 MHz public-private partnership with the adjacent 10 megahertz of spectrum dedicated to a Public Safety Broadband License. The 700 MHz public-private partnership was designed to achieve the important public policy goal of promoting public safety interoperability, allowing police, fire and other first responders to better communicate with one another in times of emergency. Because the D Block did not meet its $1.3 billion reserve price in the 700 MHz auction, the FCC intends to re-auction this spectrum under revised rules.

The FCC seeks comment, ideas and recommendations on how to revise the rules for the D Block and whether such a public safety network remains in the public interest. In addition, the commission is interested in technical requirements of the shared wireless broadband network.

The FCC also seeks comment on how the D Block should be auctioned and licensed for commercial use if it were not required to be part of a public-private partnership. The FCC requests input on other ways to facilitate the deployment of a public safety broadband network if it found such a partnership were no longer in the public interest.

Certainly, the public is interested in free wireless Internet and a nationwide public safety network, but has the FCC forgotten that broadband is a business? Why should service providers buy spectrum licenses that don't offer much in return? I just don't see it happening.


1 Comments

I have to agree. Forcing a broadband service provider to offer "free" access to a portion of a privately built network only raises prices for the paying customers, which could have a larger negative impact than any benefit from the free portion of the service.

What we have learned from these failed community broadband projects is not that "community projects are bad," as some are trying to argue, but two things:

--Free networks don't provide the needed funds to maintain the system and expand capacity.

--Community broadband projects need to have a solid business plan that shows how operating expenses, maintenance, and expansion will be funded well into the future.

June 25th, 2008 // By Andrew

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