FCC Sets Wireless Spectrum Auction

Federal Communications Commission Chairman Kevin Martin will open auction for the best wireless spectrum in US.

The 700MHz wireless spectrum has the best spectrum in the country. It has the best quality and the largest coverage, this is why wireless voice providers are very interested in this spectrum.

Federal Communications Commission still has to set conditions for the auction, and wireless service providers are actively discussing what they would want to see in the conditions.

Cable and telecom providers want part of spectrum to be sold under open-access rules. This means that auction winner would have to sell open-access to other communication companies.

On the other hand, broadband and wireless service providers don’t want open-access rules, because this condition will decrease the spectrum value. Since broadband and wireless service providers are on their way to provide with better and innovative services, this condition will limit their creativity.

FCC has now has set draft conditions of the auction: two pairs of 11MHz parts will be auctioned under open-access condition and a 10MHz part will work for public safety services, such as police and fire. The auction is expected to bring about $15 billion revenue. The auction is initially set for December or January.

We don’t know if the draft conditions will be confirmed or not, but one thing is clear that mobile device carriers will definitely benefit from new conditions. Nowadays mobile service providers can allow or block any of mobile devices, limiting consumers’ choice. But after the new conditions approved, mobile device carriers will be able to use any device in the network.

“The chairman has proposed that the winner of one larger piece of spectrum in the upcoming spectrum auction must build a network that allows consumers to attach any device or run any application that they choose to, provided they don’t interfere with network management. This is to enable consumers to benefit from innovation and all that wireless broadband has to offer,” said FCC representative. HULIQ

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