spectrum auction

Report: AWS-3 license would fetch $2.8B without FCC's conditions

Lynnette Luna — Wed, 25 Jun 2008 22:58:58 -0400

Analysis from the Phoenix Center says that the FCC's proposed auction of a nationwide 25-megahertz license in the Advanced Wireless Services (AWS) band would garner about $2.8 billion at auction if the license didn't come attached with substantial conditions--which includes offering free broadband wireless service and strict buildout requirements. Phoenix Center Chief Economist George S. Ford came to that number after analyzing the results of prior auctions in the AWS band and the recent 700 MHz auction, which resulted in an auction value of approximately $0.40 per MHz-pop.

The commission is proposing to combine the 2155 to 2175 MHz band with the 2175 MHz to 2180 MHz band to create a 25-megahertz swathe of spectrum that would support a nationwide license. The spectrum is referred to as AWS-3. Under FCC proposals, the licensee of this band would be required to use up to 25 percent of its network capacity for free, two-way broadband service at data rates of at least 768 kbps downstream. A network-based filtering mechanism would also be required for the free Internet service to protect children and families from obscene content. The winning bidder of the AWS-3 band would also have to offer coverage and service to at least 50 percent of the U.S. population within four years and at least 95 percent of the population by the end of 10 years.

These type of stipulations can substantially impact the value of spectrum, said the Phoenix Center. "There may be significant social or consumer value to many of the conditions proposed by the FCC for the AWS-3 license," said Ford. "But policymakers should be aware of the impact that their decisions have upon the value of spectrum and the business case for offering wireless services over encumbered licenses."

For more:
- read cellular-news

Related stories:
FCC looks to fast-track free wireless broadband network initiative. Free broadband wireless story
FCC mulls another spectrum auction. Read this spectrum auction story.
Will a spectrum auction requiring free broadband services work? Read this spectrum auction editorial

FCC seeks comments on D-block re-auction

Thu, 29 May 2008 06:59:53 -0400

The FCC has given a June 20 deadline for receiving comments on how it should reauction the D-block 700 MHz spectrum. The spectrum, reserved for public/private network, failed to receive the minimum bid amount during the recent 700 MHz auction.

Already, the FCC has received comments from the mobile industry, public safety and academics. Most comments focus on how D-Block rules can be crafted to attract bidders that have the funds to build and operate a national wireless broadband network serving public safety.

Top public-safety groups and some Congressional members have voiced support to continue with the public-private partnership idea, offering first responders priority access while serving the general consumer. It appears the reserve price, which was previously $1.3 billion, will likely be changed.

For more about the D-block spectrum:
- read this RCR Wireless News article

Related stories:
- Congress takes on failure of D-block auction. See this D-block auction story
- Frontline closes doors; D-block auction in question. Read this Frontline story

Will a spectrum auction requiring free broadband services work?

Tue, 27 May 2008 06:59:58 -0400

FCC Chairman Kevin Martin has scheduled a vote on rules for another spectrum auction that would include 25 megahertz in the 2155 MHz to 2180 MHz band and would require the winning bidder to offer free broadband service under a strict buildout schedule. (See story No. 1)

The proposal is based on a number of proposals entities have floated over the years. Namely M2Z networks back in 2006 asked the FCC for free spectrum in that band to offer free broadband for the masses. The FCC subsequently denied all of the plans because they go against a principle established decades ago that the commission needs to grant spectrum via an auction.

The rules the FCC is looking at would stipulate a free service tier and would require the winning bidder to reach 50 percent of the population in four years and 95 percent of the population by the end of the license term.

How would the operator create a business plan out of these requirements? We can guess from M2Z's previous proposal. The company was planning to receive a return on its investment by offering access to the network on a wholesale basis. The company had also planned to offer a premium broadband service that would be faster than current DSL and cable speeds for which it would charge between $20 and $30 per month.

But that proposal was two years ago, when there wasn't the threat of Clearwire's WiMAX, new 4G networks in 2010 and failed muni-WiFi business models. Plus M2Z had proposed that the spectrum be free.

So the question is, would such an auction generate any interest? The intentions of such a network are noble, but it seems to be a risky business proposition given the fact that network operators build out their networks according to demand for their services. This could very well end up being another D-block auction if the FCC doesn't craft its rules carefully and offer a clear money-making path.--Lynnette

FCC mulling another spectrum auction

Tue, 27 May 2008 06:59:57 -0400

FCC Chairman Kevin Martin has scheduled a vote on rules for another spectrum auction. And you thought there wasn't any more spectrum to be auctioned. This auction would include 25 megahertz in the 2155 MHz to 2180 MHz band and would require the winning bidder to offer free broadband service under a strict buildout schedule.

It's a similar plan to what M2Z Networks proposed back in 2006. The company asked the FCC for 25 megahertz of vacant spectrum in the 2155 MHz to 2175 MHz band to offer free wireless broadband service. The FCC subsequently dismissed M2Z's request. More recently, Rep. Anna Eshoo (D-Calif.) introduced new legislation, known as the Wireless International Nationwide for Families Act, that would direct the FCC to auction unused spectrum, the 2155 MHz to 2180MHz band, and require the winner to offer a free wireless broadband network that reaches 95 percent of the U.S. population within 10 years.

"We've had a variety of proposals that had come into the commission originally where some people wanted us to give them the spectrum," said Martin in an RCR Wireless News article. The FCC chairman said a vote may be held at the agency's upcoming June 12 meeting, but added it is possible the measure could be approved before that date.

Martin said a licensee of the 2155-2180 MHz spectrum would have to provide a free service tier, and would have to reach 50 percent of the population in four years and 95 percent of the population by the end of the license term.

To read more about the FCC's auction plans:
- check out this article from RCR Wireless News

Related stories:
- Congresswoman proposes free wireless broadband. See this wireless broadband story
- M2Z Networks pushes broadband for the masses. See this M2Z Networks story

Technology-neutral European auctions opportunity for technology companies

Mon, 19 May 2008 06:59:58 -0400

European governments have taken an unprecedented move to offer wireless broadband licenses on a technology-neutral basis, and technology companies are taking advantage to foster the proliferation of their technology interests and for a relatively cheap price tag.

Qualcomm last week won U.K.-wide L-band spectrum for $12.9 million, but the company is being vague about its plans for the band, saying it wants to "explore emerging business models and advanced mobile technologies."

Said Andrew Gilbert, an executive VP of Qualcomm: "Acquiring this spectrum will enable us to develop, test and explore a variety of innovative wireless services and technologies that will benefit European consumers and the wireless industry as a whole. The company has a long history of innovation and creating new technology markets."

Earlier this month, Intel Capital was among the winners of Sweden's auction of the 2.6 GHz band, acquiring 50 MHz of TDD spectrum for $26.5 million. Intel is seeking partners to build and operate a WiMAX network. The company plans to rent out the license to partners rather than sell it to grow WiMAX and the market for its Centrino WiMAX-enabled chips.

Of course, Qualcomm has a history of pushing new technologies via license ownership, with mobile TV being the latest. As it was going around evangelizing CDMA in the 1990s, the company bought licenses to begin Leap Wireless to push CDMA. Maybe it wants to prove that Ultra Mobile Broadband, the 4G path for CDMA technology, is a viable one.

It will be interesting to see who bids in the auctions going forward. Might Google make a play for a license and look for someone to run the network so it can guarantee its services on a carrier's network? Will Intel look to win more licenses, and what in the world is Qualcomm doing?--Lynnette

What will Qualcomm do with the U.K. spectrum it won?

Mon, 19 May 2008 06:59:53 -0400

Having won the auction for the U.K.-wide L-band spectrum auction, Qualcomm has been reluctant to define what it might be used for other than to "explore emerging business models and advanced mobile technologies."

Qualcomm spent $12.9 million to win the spectrum right to the 1452 MHz to 1492 MHz band, and competing against seven other hopefuls, Qualcomm claims the license is suitable for offering mobile television, wireless broadband and satellite radio. The spectrum has been released on a technology and service neutral basis, leaving Qualcomm and its partners free to decide what to do next. The frequency band is also available as of now.

Andrew Gilbert, an executive VP of Qualcomm, said: "Acquiring this spectrum will enable us to develop, test and explore a variety of innovative wireless services and technologies that will benefit European consumers and the wireless industry as a whole. The company has a long history of innovation and creating new technology markets."

For more on this story:
-read CNNmoney

FCC votes to resurrect public-safety network idea

Thu, 15 May 2008 06:59:53 -0400

The Federal Communications Commission unanimously decided to resurrect plans to create a nationwide emergency communications network after the D-block 700 MHz auction failed to garner a company willing to build a nationwide broadband network for both commercial and public-safety users.

The commission is now seeking public input on how it can modify this plan and make it more attractive to an operator. It also wants to know whether the concept should be scrapped altogether and the D block be auctioned for commercial use.

After the agency's 5-0 vote on the D block, Rep. Jane Harman (D-Calif.) introduced legislation to authorize $4 million to begin funding the Public Safety Spectrum Trust Corp., the 700 MHz public-safety broadband licensee that would partner with a winning commercial D-block bidder under the shared wireless broadband network model.

For more about the public-safety network concept:
- read this article from AP News
- check out this report from RCR Wireless News

Intel among winners of 2.6 GHz spectrum in Sweden

Mon, 12 May 2008 06:59:55 -0400

Intel Capital was among the winners of Sweden's auction of he 2.6 GHz band, acquiring 50 MHz of TDD spectrum for $26.5 million. According to local press reports, Intel is seeking partners to build and operate a WiMAX network. The company, which recently plunked down $1 billion in the new Sprint-Clearwire WiMAX business, reportedly plans to rent out the license to partners rather than sell it.

Intel has made it clear the it isn't interested in becoming a service provider to push WiMAX. As part of the Clearwire deal, Intel has the option of wholesaling service from the new operator, but Intel Vice President Sriram Viswanathan told analysts that the company's primary focus "is to enable the platform to have WiMAX available across a variety of devices. You have to expect we're going to be primarily a technology supplier."

The other winners for 2.6 GHz spectrum, which is technology and service neutral, each acquired FDD allocations: H3G Access (2x10 MHz), Tele2 (2x20 MHz), Telenor (2x20 MHz) and TeliaSonera Mobile Networks (2x20 MHz).

TeliaSonera paid the most for its license, $93 million, while Intel paid the least. H3G Access, with only 20 MHz of spectrum, paid $49 million.

To read more about Sweden's 2.6 GHz auction:
- take a look at this telecoms.com article

Cyren Call urges rural operators to bid on D block

Mon, 05 May 2008 06:59:55 -0400

Cyren Call Chairman Morgan O'Brien was courting rural operators last week, urging them to band together and bid on the D-block 700 MHz band the FCC will likely re-auction this fall. During the Rural Cellular Association's 16th Annual Convention and Exhibition in Las Vegas, O'Brien said rural operators would gain by being able to offer advanced services to their end users, serving a new customer base via public safety, bypassing roaming deals with big operators and competing better against nationwide operators.

Earlier this year, the FCC's auction failed to raise the $1.3 billion reserve price for the D Block of spectrum, which was set aside for a public-private network that would solve public safety interoperability problems nationwide. Cyren call is the Public Safety Spectrum Trust's adviser. The PSST is an organization chosen by the FCC to serve as the national public-safety licensee for 700 MHz broadband services. Cyren Call was tapped to settle the commercial/public-safety details.

For more about Cyren's Call's pitch to rural operators:
- check out this RCR Wireless News article

Related articles:
- 700 MHz auction finally over
- What does public safety do now?

How much spectrum do AT&T and Verizon have?

Mon, 28 Apr 2008 06:59:57 -0400

In just how many markets do AT&T Mobility and Verizon Wireless exceed 95 megahertz of spectrum? Since spending a collective $16 billion in the recent 700 MHz auction, analysts have believed the two now hold more than 95 megahertz of airwaves in several markets. The FCC is looking at at whether it should request winning bidders to dispose of some of that excess spectrum.

But according to a report in RCR Wireless News, concerns may have been overstated over the number of markets where the two operators exceed 95 megahertz. Based on the publication's interviews and research from investment firms, AT&T and Verizon do not appear to have exceeded the FCC's 95 megahertz spectrum screens in as many markets as have been suggested by Congress. However, it appears the two exceed the 95-megahertz threshold in more than a dozen large and small markets. The FCC uses a 95-megahertz screen to scrutinize spectrum holdings and mergers. The screen was applied at a higher level in the FCC's approval of AT&T Mobility's purchase of Dobson Communications last year.

According to analysis from Alan Weissberger with DCT Advisors, AT&T or Verizon exceeds the 95 megahertz threshold in eight of the top 10 U.S. markets, 17 of the top 25 markets and 38 of the top 100 markets. See his chart of these markets here. In the Dallas-Fort Worth market, for instance, AT&T now holds 124 megahertz of spectrum.

For more about the vast spectrum holdings of Verizon and AT&T:
- read this article from RCR Wireless News

Related articles:
Could the 700 MHz auction trigger spectrum caps? Editorial on 700 MHz auction
Leap's testimony on the 700 MHz auction

Report: Public safety partly to blame for D-block failure

Mon, 28 Apr 2008 06:59:55 -0400

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. 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 from Dow Jones

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

WiMAX could be shut out of U.K. auction

Thu, 24 Apr 2008 06:59:54 -0400

Speculation is growing that WiMAX players may have a tough time getting spectrum in the U.K.'s upcoming 2.6 GHz spectrum auction. The Office of Communications has allocated a certain amount of spectrum for time division duplex (TDD) and a certain amount of spectrum for frequency division duplex (FDD). WiMAX, of course, uses TDD and LTE uses FDD. Because of this there is concern that U.K. mobile operators will snatch up the TDD spectrum to keep WiMAX from being deployed by a new entrant.

According to Unstrung, the rules outlined by OfCom leave considerable risk of spectrum hoarding. However Ofcom says that the spectrum rules are designed to promote competition because the agency hasn't designated the spectrum for a specific use and there are no rollout obligations.

It wouldn't be surprising if the WiMAX Forum comes out with an announcement saying an FDD version of WiMAX in the 2.6 GHz band is in the works.

For more about :
- see this article from Unstrung

Related articles:
Ofcom to free up 2G spectrum for 3G use. Report on Ofcom
Ofcom to release AWS spectrum Ofcom report

Could the 700 MHz auction trigger spectrum caps?

Mon, 21 Apr 2008 06:59:58 -0400

Could the recently completed 700 MHz auction trigger spectrum caps--which were lifted in 2003--and other regulations on the mobile wireless industry?

Last week, some in Congress lamented that AT&T and Verizon Wireless walked away with the lion's share of the licenses. AT&T and Verizon Wireless spent $16 billion, or 85 percent of the total money raked in from the auction. Analysts believe the two now hold more than 95 megahertz of spectrum in several markets.

According to an article in BusinessWeek, FCC Chairman Kevin Martin told members of Congress during a hearing last week that he will look at whether the FCC should request winning bidders to dispose of some of that excess spectrum.

But Martin also found himself defending the auction and arguing against the notion that AT&T and Verizon won the lion's share of licenses. He pointed out that congressional leaders and other various parties had plenty of time last year to assist the FCC in crafting the auction rules. He also noted that small and rural providers won 500 licenses covering nearly 60 percent of the spectrum available outside the top 15 markets, in certain slices of spectrum that were available for sale at the auction. A total of 99 bidders other than Verizon and AT&T won 754 licenses-representing almost 70 percent of the licenses sold. And a bidder other than Verizon or AT&T won a license in every market.

Still, Verizon and AT&T spent the bulk of the money at auction. And that is to be expected. Simply put, these two incumbents have the wherewithal to spend billions on licenses and billions more to build out network infrastructure. That's their core business. And with the 700 MHz band the last of the so-called beach-front property, these operators were prepared to drive the price up to a hefty level, especially given the fact that new 4G networks need a nice chunk of extra spectrum, about 20 megahertz, to deliver the broadband data speeds that are advertised.

The FCC has tried in the past to make special concessions for new and smaller entrants with disastrous effects. The PCS C-block auction resulted in bankruptcies and a number of companies essentially serving as shell companies for large incumbents.

In the wireless broadband world, I'd have to say that we are seeing some smaller companies find their niche. TowerStream is offering pre-WiMAX in several markets, successfully targeting the enterprise market with services that fixed incumbents can't offer. Xanadoo has spectrum in the 2.5 GHz band and is targeting consumers and small- to medium-sized businesses with WiMAX services to compete with DSL and cable offerings. The ISP offers seven different pricing plans beginning at $15 per month with plans to soon launch a prepaid wireless broadband offering. This large number of pricing plans is how Xanadoo is differentiating itself from DSL and cable, which typically only offer two different plans and require bundling of services.

And many winners of 700 MHz spectrum have varying business plans, with CenturyTel, for instance, using wireless to extend DSL over rural areas. Some will offer TV services. We have yet to hear about many of the winners' business plans.

In light of this, it's too early for the FCC to make any rash decisions about placing additional regulations on the mobile industry. And Congress should wait to see what the impact of the 700 MHz auction will really be.--Lynnette

Public-private partnership can work

Thu, 17 Apr 2008 06:59:58 -0400

Congress took on the results of the 700 MHz auction this week. The House Energy and Commerce Committee's Subcommittee on Telecommunications and the Internet primarily focused on the failure of the D block to hit the $1.3-billion reserve and what should be done about helping public safety gain interoperable communications, a vital need during emergencies. (See Story No. 2)

It was heartening to hear that Congress and the FCC aren't abandoning the idea of helping out public safety. The FCC wants to continue down the path of a public-private partnership, whereby a commercial operator would run the network and give priority access to public-safety users. Some members of Congress continued to support the idea too.

With some significant tweaking of the rules, I believe the FCC can make this public-private partnership stipulation work. A $1.3-billion reserve price is quite a risk for any company embarking on a business that has never been done before. Clearly, investors had seen it as a risky proposition. Frontline had planned on building this nationwide, high-speed wireless network for public safety officials, but even with the backing of L. John Doerr of Kleiner Perkins Caulfield & Byers, as well as other supporters, the company raised enough for the $128 million down payment, but not enough for the $1.3 billion reserve price on the spectrum. Subsequently, Frontline closed its doors before the auction began.

Hopefully Congress and the FCC will make some thoughtful decisions about the next round. The FCC was hamstrung before because it had to auction the 700 MHz spectrum by January 2008. There simply wasn't enough time to study the intricacies of such a complicated business proposal. --Lynnette

Congress takes on failure of D-block auction

Thu, 17 Apr 2008 06:59:56 -0400

The House Energy and Commerce Committee's Subcommittee on Telecommunications and the Internet this week took on failure of the D-block band to gain any reasonable bids during the 700 MHz auction. The result: There was no consensus on what the next plan should be.

The D-block spectrum carried a $1.3 billion reserve requirement and was designed as a public-private partnership whereby a commercial operator would run the network and give priority access to public safety.

During the hearing, some Congressional members said they agreed that the public-private partnership structure the FCC stipulated for the auction remain, but with some changes to attract more bidders. The changes might include a lower reserve price and greater detail regarding the business model for the winner of the spectrum. The FCC also favors this approach.

Others expressed interest in auctioning the D block without the public-private stipulation and using the proceeds to fund a nationwide public-safety network.

FCC Chairman Kevin Martin said the FCC would welcome this or other federally funded alternatives, but that would be the decision of Congress, not the FCC.

To read more about the public-safety hearing:
- check out this article from MRT Magazine

Related articles:
- Frontline closes doors; D-block auction in question Report on D-block auction
- What does public safety do now? Editorial on D-block auction

CenturyTel reveals plans for 700 MHz licenses

Thu, 10 Apr 2008 06:59:56 -0400

Rural independent local exchange carrier (ILEC) CenturyTel revealed its plans for the 700 MHz spectrum it won at auction last month. Rather than becoming a service provider, the telco plans to use the licenses to create a broadband wireless overlay network to serve less densely populated areas within its existing wireline footprint. The company did not reveal what technology it plans to deploy nor a timeline for when it will construct the network.

"While it is too early to discuss financial and operational details, we are acquiring spectrum that overlaps our core ILEC and fiber transport networks," CEO Glen Post said in a statement. "This should enable us to utilize our existing operations, including our current distribution and technical support infrastructure, to cost-effectively deploy wireless services, both in our existing markets and in selective contiguous markets, where we believe profitable growth is achievable."

To read more about CenturyTel's 700 MHz plans:
- check out this article from Telephony

Related article:
- CenturyTel: Profit higher, outlook tempered Report on CenturyTel's 4Q earnings
- Biggest indie telco makes IPTV move Report on CenturyTel's Columbia, Mo. project

British Telecom mulling WiMAX play in the U.K.

Thu, 10 Apr 2008 06:59:55 -0400

According to a report in the Financial Times, British Telecom's CEO designate, Ian Livingston, said BT is mulling whether to invest in WiMAX. BT has considered such an investment for a few years now. Currently, BT's wireless service makes use of Vodafone's network, so a WiMAX network of its own would allow the company to better direct its wireless strategy. With the 2.6 GHz spectrum auction coming up in the U.K., all eyes are on BT to see whether it will bid to win spectrum to ultimately build a WiMAX network. BT, however, told the Financial Times that it has made no commitment to either bidding in the auction or to pursuing a WiMAX network.

For more on BT's wireless plans:
- read this article from the Financial Times

Related article:
- Operators play wait and see with WiMAX in Europe Report on the 2.6 GHz auctions in Europe

Operators reveal 700 MHz plans: LTE the big winner

Mon, 07 Apr 2008 06:59:58 -0400

The CTIA trade show would have been much more livelier had the winners of the 700 MHz auction been allowed to detail their plans for the spectrum. But the FCC anti-collusion restrictions were lifted April 3 in the afternoon, when the show floor had closed for the year.

Verizon Wireless executives on Friday morning assured investors the company's $9.36 billion investment in 700MHz spectrum will provide a long-term foundation for Verizon's business. Specifically, the company said that this year it will be conducting field trials of LTE. In 2009 it will select vendors, conduct some advanced device trials with a deployment planned for the second half of that year. By 2010 the operator plans to launch commercially and have rapid acceleration of its footprint.

Meanwhile AT&T, which spent $6.6 billion in the 700 MHz auction for B-block licenses, will also deploy LTE. The new B-block spectrum will be combined with AT&T's spectrum it acquired from Aloha Partners last year. Kris Rinne, senior vice president, architecture and planning at AT&T told the audience at last week's FierceMarkets Path to 4G conference, which was co-located with the CTIA show, that the company will likely deploy LTE in the 2010 time frame.

Interestingly, it doesn't appear AT&T has any open access plans for its spectrum and and in fact said the open-access stipulations placed on Verizon's C-block spectrum will give it an advantage in the market.

"With fewer costly and complex regulations, we have the certainty and flexibility needed to move faster in rolling out new mobile technology and more customer choices in devices and applications," said Ralph de la Vega, president and CEO of AT&T's wireless business in a press release. "We will put our spectrum to work so that customers can do more with their wireless devices, the user experience is superb, and wireless connectivity can be embedded in more devices."

And we were under the impression that open access fosters customer choice in devices and applications.

With the two largest mobile operators now deploying the same 4G technology it should be interesting to see how each positions themselves in the market. For one, open access is a cumbersome thing. For the other, open access will make it the preferred partners for developers.

I also want to share with you some of the tidbits I learned at CTIA last week:

One CDMA vendor I talked to believes UMB, the 4G path for CDMA, is nearly dead. KDDI is reportedly the only operator interested in deploying it but only if some other operators commit as well--slim chance.
NextWave Chairman and CEO Allen Salmasi said the phone has been ringing off the hook at the company's headquarters now that the 700 MHz auction is over. Part of NextWave's strategy is to offer spectrum it owns to companies that want to enter the mobile broadband space using NextWave's end-to-end solution of products and services, which are numerous. Moreover, Salmasi said to expect to see NextWave involved in a major LTE trial later this year.
HSPA technology is reportedly facing capacity problems in Korea as the popularity of video services is hurting voice quality.--Lynnette

P.S. Group Editor-in-Chief Sue Marek will be talking about all the highs and lows from CTIA with Andy Seybold and Linda Barrabee of the Yankee Group on Thursday, April 10 at 2 p.m. EST. Be sure to tune into the lively discussion. Register here.

Google: We never intended to win 700 MHz licenses

Mon, 07 Apr 2008 06:59:56 -0400

Now that the 700 MHz auction winners are revealing their plans for the spectrum, Google is admitting it bid in the auction but never really intended to win the spectrum.

Instead, in a corporate blog, Google lawyers say that Google's game plan was to make sure bidding on the C block reached the $4.6 billion reserve price that would trigger the important open access conditions. "We were also prepared to gain the nationwide C block licenses at a price somewhat higher than the reserve price; in fact, for many days during the early course of the auction, we were the high bidder. But it was clear, then and now, that Verizon Wireless ultimately was motivated to bid higher (and had far more financial incentive to gain the licenses)."

For more, see this article from TheStreet.com.

Related stories:
Is 'open network' just marketing hype? Editorial
Verizon, AT&T big winners in 700 MHz auction Article
FierceWireless' special coverage of the 700 MHz auction Coverage

Cyren Call says it's not to blame for Frontline's end

Mon, 07 Apr 2008 06:59:54 -0400

Cyren Call Communications addressed news reports and blog postings that suggested it caused the end of Frontline Wireless, the entity that had hopes of bidding in the D-block auction to offer a commercial/public-safety wireless network but subsequently couldn't raise enough money to do so. Cyren Call said it never demanded long-term payments as a condition for a winning bidder of D-block band as reports suggested. Cyren call is the Public Safety Spectrum Trust's adviser. The PSST is an organization chosen by the FCC to serve as the national public-safety licensee for 700 MHz broadband services. Cyren Call was tapped to settle the commercial/public-safety details.

"Anyone stating or implying that I or any member of Cyren Call or the Public Safety Spectrum Trust Corp. 'demanded' a spectrum lease payment is lying. Furthermore, anyone suggesting that any spectrum lease payment would be paid to Cyren Call is lying," said Cyren Call Chairman Morgan O'Brien.

The FCC failed to secure the minimum $1.33-billion bid for the D-block band and is mulling the options.

To read more about Cyren Call's comments:
- check out this article from RCR Wireless News

Related articles:
Frontline closes doors; D-block auction in question Report
FCC commish will relook at D block Report