FCC, Frontline argue against VZW auction lawsuit

The Federal Communications Commission and Frontline Wireless L.L.C oppose Verizon Wireless’ emergency motion to have its court appeal of the 700 MHz open-access rule put on a fast track.
“It would make little sense for the court to expedite this case when, halfway through the briefing schedule, new parties may enter the case and new cases may be filed that present the very same threats to the auction process that Verizon says it wants to avoid,” the FCC told the U.S. Court of Appeals for the District of Columbia Circuit. “Expedition thus may lead to haphazard piecemeal litigation, along with its associated wastefulness, inefficiency and burden on both the court and the parties. The wiser course is to wait until all litigation is known and to proceed in an orderly manner.”
Indeed, more litigation could be on the way. The FCC is currently reviewing petitions for reconsideration of rules for 700 MHz licenses up for auction beginning Jan. 16. Parties whose petitions for reconsideration are rejected could seek relief in federal appeals court.
Verizon Wireless asked the court to rule by December on its challenge to the open-access condition on a third of the spectrum headed for auction early next year.
Frontline Wireless, a Silicon Valley-backed startup headed by Washington political insiders and wireless industry veterans, told the court Verizon Wireless has failed meet the legal standard for expedited treatment of its appeal.
“Verizon’s motion may effectively prevent interested parties that have a legal right to participate in these proceedings from doing so,” Frontline stated.
The 700 MHz litigation could impact the $10 billion to $15 million the U.S. Treasury is counting on from the auction of 700 MHz spectrum.