Telecom heavyweights argue for RFP process for D-Block spectrum: Comments flood into FCC

Comments on what the FCC should do with the 700 MHz D Block ran the gamut, with some urging the agency to tighten its rules on a public-private sharing of the spectrum while others recommended the D Block be auctioned without any conditions whatsoever.
The debate continues months after the FCC failed to find a winning bidder for the 10 megahertz that was up for grabs during the agency’s 700 MHz spectrum auction. Although the event raised close to $20 billion in winning bids, the D Block only scored one bid (from Qualcomm Inc.) and did not exceed its required $1.3 billion reserve price.
Now, the FCC is reconsidering what to do with the spectrum, including whether it should retain rules that would require the D Block winner to share the spectrum with public-safety agencies.
Some, such as MetroPCS Communications Inc., argued in filings to the FCC that the public-private partnership element be removed from the spectrum.
“One thing is abundantly clear from the results of the 700 MHz auction – there is a substantial unsatisfied demand for paired commercial broadband channels in relatively small geographic areas and spectrum block sizes – and there is no commercial demand for a nationwide public/private partnership,” MetroPCS wrote. “As it did with its prior contingent Auction 76 allocation structure, the commission should make the necessary arrangements to permit a prompt follow-on auction of unencumbered spectrum for commercial purposes in the event that no qualified bidder emerges and wins the D Block with its public-safety encumbrances.”
Several of the nation’s largest carriers argued for a request-for-proposal process for divvying out the spectrum, which would allow companies and other entities to submit business plans to the government on what to do with the spectrum and how to use to serve public safety.
“In particular, we believe these requirements are more likely to be met through a competitive request for proposal (RFP) process than through an auction because RFPs allow for the consideration of a broad range of alternatives and enable public safety to partner with whomever develops the proposal that best suits their needs and resources,” wrote Verizon Wireless in its filing. “The commission also should reject calls to impose eligibility limits that would exclude the major carriers from serving public safety because their exclusion would increase both the cost and deployment time of public safety wireless broadband systems. Because the primary purpose of this proceeding is to serve the interests of public safety, it should not be used to pursue unrelated policy objectives regarding market entry and diversification of ownership.”
Verizon Wireless rival AT&T Inc. issued a similar filing.
Finally, a number of players argued for the public-private approach to the D Block, but said the FCC should set more stringent and enforceable requirements on the D-Block winner.
Wrote Qualcomm: “If the commission decides to continue with the public-private partnership model for the D Block and public safety, it should seriously consider revising the buildout requirements, the rules regarding the subscription by public-safety groups to the network, the reserve price, the default penalty, the definition of ’emergency,’ and the other rules governing the D-Block auction and the ultimate network deployment.”