FCC urged to forgo AWS-3 conditions

Two key House Republicans urged the Federal Communications Commission not to attach conditions to advanced wireless services-3 spectrum and to forgo approval of final rules for that band until after the 700 MHz D-Block re-auction.
“We think your proposed rules could repeat this mistake by tailoring the AWS-3 spectrum largely to the business model of a single party,” Reps. Joe Barton (R-Texas) and Cliff Stearns (R-Fla.) said in a letter to FCC Chairman Kevin Martin. “Placing these conditions would result in the commission choosing winners and losers, as well as denying taxpayers the added revenue the spectrum would likely fetch if auctioned without the conditions.”
Though not identified by name, the two lawmakers appear to be referring to M2Z Networks Inc., a Silicon Valley-funded startup headed by former wireless policymaker John Muleta. The firm’s free, family-friendly wireless broadband plan was rejected by the FCC, prompting a legal challenge in the U.S. Court of Appeals for the District of Columbia Circuit.
Barton, ranking member of the House Commerce Committee, and Stearns, ranking member of the telecom subcommittee, accused the FCC of undermining the 700 MHz auction by approving special rules they claim were tailored to business models proposed by now-defunct Frontline Wireless L.L.C. and Google Inc. The lawmakers said the 700 MHz conditions pushed out private-sector players and subsequently lessened auction revenues. The event generated nearly $20 billion for the U.S. Treasury earlier this year.
Barton and Stearns predicted the FCC’s plan to impose free broadband service, content filtering and other obligations on the national AWS-3 license winner also will stifle bidding.
The mobile-phone industry strongly opposes AWS-3 conditions, arguing potential interference from operations in the 2155-2175 MHz and 2175-2180 MHz bands would sabotage investments from wireless carriers – particularly the smallest of the four national operators, T-Mobile USA Inc. – that spent more than $4 billion to win licenses in the AWS-1 auction two years ago.
An FCC spokesman declined comment on the Barton-Stearns letter, but said the agency looks forward to reviewing public comments this month on the AWS-3 proposal.
Meantime, the FCC is considering options for re-auctioning D-Block frequencies.