Martin working to revise 700 MHz open-access provisions

Federal Communications Commission Chairman Kevin Martin is aggressively pushing for prompt revisions to the 700 MHz open-access rule-even before the agency completes a review of the various regulatory challenges to the full 700 MHz decision, according to industry sources who suggest the behind-the-scenes activity is tied to Verizon Wireless’ lobbying.
Martin, according to sources, failed late last week to make changes to the 700 MHz open-access conditions after a backlash from one or more of his FCC colleagues. Sources said Martin is now attempting to use a different policymaking vehicle-a declaratory ruling-to modify the auction’s open-access guidelines in a way that responds to concerns raised by Verizon Wireless executives at a Sept. 17 meeting with Martin, his staff and Fred Campbell, chief of the FCC’s wireless bureau.
Key industry players are worried Martin wants to water down the open-access conditions outside of the normal public-comment process.
An FCC spokesman declined to comment.
Some industry sources said they fear Martin is caving to pressure from Verizon Wireless, which recently sued the FCC over the imposition of open-access conditions on a third of the 700 MHz spectrum set for auction early next year. Verizon Wireless’ participation in the auction could help determine whether the event generates the anticipated $10 billion to $15 billion in bids.
Verizon Wireless declined comment. But in the second of two lobbying filings on its Sept. 17 meeting with FCC officials, the carrier reiterated its opposition to open-access requirements.
Verizon Wireless said it told Martin and other agency officials the open-access conditions would “force C-block licensees to allow any and all lawful applications to be downloaded to any devices that licensees provide, including devices that are not configured to accommodate any and all lawful applications,” and would “inhibit C-block licensees from differentially pricing a package of benefits, features and services (including customer service) made available with devices they provide, as compared to a package of services provided with non-licensee-supplied devices, and thus fail to recognize the different value propositions these different packages of services offer to customers.”
Attending the Sept. 17 meeting was Thomas Tauke, Verizon Communications’ top lobbyist, as well as Verizon Wireless’ CEO Lowell McAdam and general counsel Steven Zipperstein.
Why Martin is in such an apparent rush to revise, or clarify, the 700 MHz open-access provision is unclear. Petitions for reconsideration of the 700 MHz decision just arrived at the FCC on Monday.
“The question of how this issue is resolved will impact the value of the C-block [open-access] condition,” said Harold Feld, senior VP of the Media Access Project.
One industry source said that Verizon Wireless’ open-access lobbying, at a minimum, seems to suggest the carrier has a strong interest in competing for the 22 megahertz open-access block.