Forget Google, Watch Out For Chevron In The 700 MHz Auction

from the my-ISP-is-Chevron? dept

Everybody's been buzzing about the likelihood of Google bidding on the 700 MHz spectrum that's up for auction in a few weeks, that's allowed a few other interesting characters to get in on the auction below the radar. The FCC has now announced that 266 separate entities have filed to take part in the auction, so it's quite a long list. So far, only 96 applications have been accepted, but the others have until January 4th to get their applications in order. Everyone knew Google was on the list, and it's no surprise to hear names like Verizon Wireless, Alltel, MetroPCS, Vodafone and AT&T (who already got a head start buying some other spectrum in the 700 MHz realm earlier). There was some speculation about cable companies participating, and sure enough, Cox and Cablevision will show up at the auction. Then there are a few surprises. Qualcomm is planning to bid -- which could upset some of the US carriers who consider Qualcomm more of a partner than a competitor.

In a list of 266 companies, there are always going to be some long shots -- but it still doesn't hurt to point out some of the more interesting bidders. Microsoft co-founder Paul Allen plans to bid via his Vulcan Spectrum LLC (reusing his favorite "Vulcan" name for companies). It's unclear what he would do with the spectrum. Perhaps even more surprising is the news that oil giant Chevron is planning to participate. What the company would do with the spectrum should it win (and it certainly has the money to win) is an open question, but there are a few intriguing ideas. As for Google, don't hold your breath for a win here. It has seemed pretty clear from the beginning that the company is only in the auction to bid $4.6 billion -- the lowest point necessary to force open access rules to kick in. It would be a huge surprise if the company bid much more than that, and it would be an even bigger surprise if no one outbid Google.

Filed Under: 700 mhz, fcc, paul allen, spectrum, spectrum auction
Companies: at&t, chevron, fcc, google, verizon

FCC Not Convinced To Just Hand Over Spectrum To Startup In Exchange For Potential Future Profits

from the FCC-prefers-its-money-upfront dept

In May of 2006, a VC-backed startup called M2Z petitioned the FCC to hand over some spectrum for free in exchange for a cut of future potential revenues. As you're probably quite aware, the FCC has been focused lately on auctioning off slices of spectrum to private companies for use in various wireless projects. The spectrum seems to only be getting more and more valuable as demands for potential wireless applications and services increase. Of course, as we've seen in the past, these spectrum auctions don't always work out so well, with companies overbidding and being unable to actually do much with the spectrum. Part of the problem is that the FCC wants to put all sorts of rules on the spectrum usage, rather than letting it be used for whatever makes the most sense, like some other countries.

However, the M2Z proposal seemed pretty questionable in its own way, promising nothing up front, and then making plenty of promises on the backend. The company claimed it would cover 95% of the country in broadband in 10 years, would have a "free" tier that was relatively slow and filtered, a more expensive upper tier, as well as offering priority for public safety uses. It may have been intriguing simply for the fact that it was different, but the FCC wasn't convinced. As has been expected for quite some time, the FCC has rejected the proposal, though some believe that the debate over this topic may eventually lead to good things from the FCC with the spectrum it's going to release in the near future. Of course, in the end all this really highlights is that the FCC still is focused on dribbling out bits and pieces of spectrum using different rules and regulations each time -- rather than coming up with a truly comprehensive spectrum allocation plan. Of course, some of us have been pointing this out for years, and the FCC never seems to get any closer to a comprehensive spectrum allocation policy -- and the country continues to suffer for it.

Filed Under: fcc, spectrum, spectrum auction, spectrum policy, wireless
Companies: fcc, m2z