D-Block auction moves forward, but details still under discussion
Wall Street meltdown hangs over proceedings
September 25 2008 - 1:42 pm ET | Jeffrey Silva | RCR Wireless News
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.
September 29, 2008 05:59 am
I say that if they are worried about making the money on the sale of the D-Block spectrum that they lower the minimum sale price of it as well as the starting price, extend the contract term from 15 to 20 years, and turn it in to a profit sharing agreement where the usage done on the network (Emergency Services Excluded) brings in a small revenue in accordance to the usage to pay for the decreased sale point of the spectrum. This would be a win win win situation for the FCC and as well as the wireless carrier(‘s) that would end up getting the spectrum and the users of the spectrum as well which is us the consumer.
September 25, 2008 01:44 pm
Still not sure:Does the new plan propose to open up both existing 700Mhz Public Safety Spectrum (763-775Mhz and 793-805Mhz) and the new D Block to allow the winner of this new auction to use (share) both spectrums with their commercial clients and allow the Public Safety folks to take control of all this spectrum in a declared emergency????Or as I understand it the only spectrum that will be allowed to be shared with the commercial interest is the new D block spectrum being auctioned.The first approach I discussed (allowing all the spectrum to be shared with commercial makes a lot more sense and will get a serious look by all players.Otherwise only Verizon Wireless will bid and win this new D Block, since they own and will operate contiguous spectrum (C Block) and an additional chuck of 700Mhz they are under contract to deploy for the Federal Governments own Nationwide Offices.Jim A.
September 25, 2008 01:44 pm
Still not sure:Does the new plan propose to open up both existing 700Mhz Public Safety Spectrum (763-775Mhz and 793-805Mhz) and the new D Block to allow the winner of this new auction to use (share) both spectrums with their commercial clients and allow the Public Safety folks to take control of all this spectrum in a declared emergency????Or as I understand it the only spectrum that will be allowed to be shared with the commercial interest is the new D block spectrum being auctioned.The first approach I discussed (allowing all the spectrum to be shared with commercial makes a lot more sense and will get a serious look by all players.Otherwise only Verizon Wireless will bid and win this new D Block, since they own and will operate contiguous spectrum (C Block) and an additional chuck of 700Mhz they are under contract to deploy for the Federal Governments own Nationwide Offices.Jim A.