A report from the FCC inspector general concluded that the requirement for lease payments of about $500 million contributed to the failure of the D-block auction. No serious bidders emerged for the spectrum, which was reserved for a public-private partnership that would give first responders a national wireless broadband network.

The inspector general's report was based on interviews with FCC staffers, public safety and companies such as Frontline Wireless--which had planned on bidding for the spectrum but couldn't raise enough money [1]. The report concluded that demand from public safety, via Cyren Call, which was appointed to manage negotiations, discouraged bidding. The report also called into question the commercial viability of such a public-private partnership given the way the FCC constructed the rules for the band.

According to the report, "Cyren Call's statements regarding a $50 million-per-year payment was not the deciding factor in Frontline's decision not to bid on the D-Block, but was merely one of many concerns it had regarding the auction."

For more about the inspector general's report:
- check out this article [2] from Dow Jones

Related articles:
Cyren Call says it's not to blame for Fronline's end D-block report [3]
Frontline closes doors; D-block auction in question Report on Frontline [4]