The battle for open skies is really starting to heat up, as we creep every closer to the start of the Federal Communications Commission anticipated auction of
the 700MHz band spectrum which is slated to happen in January.
Frontline Wireless has petitioned the FCC to lower the
minimum prices set for the spectrum licenses, in order to allow smaller
wireless companies to effectively compete in the auction.
Here's why this is more than a money issue: The FCC has set minimum
prices for each of the five spectrum blocks up for bid. If those prices aren't
met during the bidding the block will be re-auctioned -- but without the
service conditions attached to it in the original auction. The key issue here
is that the highly coveted C Block has a reserve price of $4.6 billion with
open skies service conditions that require the spectrum winner to allow
customers to use devices and software of their choice.
"The incumbent bidders who have both the most money
with which to bid and the most to lose from open access platforms, namely
Verizon and AT&T, will rationally act to defeat the conditions by refusing
to bid or low-balling their bids," Frontline stated in its petition.
"Because the incumbents have deep pockets and can afford to bid high for
the spectrum in re-auction, they will have effectively been given the
opportunity to buy their way out of the open access conditions."
Sounds pretty plausible to me.