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December 11, 2007  |  Email This Article   |  Print This Article

Who’s who (besides Google) in 700 MHz auction

WASHINGTON DC (WiMAX Day). With so many eyes and ears fixed to Mountain View, California, the 700 Mhz spectrum auction in America next year may just as well be tagged the “Google auction.” That’s because the press, enlightened bloggers, and analysts have cooked up a hotpot of conjecture over what Google could have in mind in announcing itself as a possible bidder on the “C” block of spectrum. Google stirred the pot enough on their own this year, asking the Federal Communications Commission (FCC) to order any C-block spectrum winner to provide an open network where customers will be allowed to use any software, services, and hardware they wish.

 

In the Google-centric glare, pundits at least managed to make the other point—that bidders other than Google would show up to bid, and that the auction would be far more interesting for it.

 

Last week, a list of the hopeful spectrum bidders was revealed. Contenders filing their intentions to bid so far include well-known names like Cox, Cablevision, AT&T, Verizon, UK’s Vodaphone, and some surprises: EchoStar Communications, Frontline Wireless, MetroPCS, and Leap Wireless.

 

This spectrum-seeking group—cable operators, wireless carriers, mobile phone service providers, and a TV satellite operator— filed by the December 3 deadline with the FCC to participate in the auction which begins January 24. 

 

Speculation and debate will no doubt continue over who walks away with a chunk of the spectrum, how much they will pay, and most importantly, what they intend to do with the spectrum once its been purchased.

 

AT&T and Verizon’s entries, as the two biggest wireless carriers, came as no surprise. What did stir up a lot of new conversation were entries of EchoStar Communications, satellite TV operators, and Frontline Wireless, a Greensboro, North Carolina startup backed by Silicon Valley investors. 

 

Like Google, Frontline is in the open-access camp. Unlike Google, where observers are still scratching their heads over what the company will do—build a network or lease the spectrum out to other operators—Frontline has been fairly explicit over its intentions. “We are bidding to build out a 4G network to meet the needs of public safety and other customers and to operationalize open access with a wholesale business model as a carrier’s carrier,” announced a recent statement from Frontline. This means that Frontline wants to build a national network for public safety and to lease excess capacity to carriers.

 

Frontline may be a less familiar household name than AT&T and Verizon, but they are neither amateurs in the business of spectrum nor in the procedures of government. Reed Hundt, Frontline’s vice chairman, is a former FCC chairman. It was in the period that he served,1993 to 1997, that the system of holding auctions for spectrum took hold, versus a lottery-style. Janice Ubuchowski, Frontline Wireless chairman, had seven years with the FCC, in roles including senior advisor to the chairman.

 

A rationale for EchoStar to bid in the spectrum auction arena has been less obvious, especially since earlier this year, EchoStar announced a strategic agreement with Clearwire to provide subscribers bundled “triple play” voice, Internet and video services via WiMAX.

 

EchoStar also was a bidder in the Advanced Wireless Services (AWS) spectrum auction last year, with designs on creating its own national WiMAX network, but dropped out of the auction when prices became too high.

 

Dallas-based MetroPCS, also going after the spectrum, is a low-cost, flat-rate provider of wireless broadband PCS services. The company covers San Francisco, Miami, Tampa/Sarasota/Orlando, Atlanta, Sacramento, Dallas/Ft. Worth, and Detroit. 

 

Likewise, San Diego-based Leap Wireless, which began as a spinoff of Qualcomm, provides wireless services, and positions itself as a low-cost provider.

The “700 MHz band” will be auctioned in five blocks, A through E. Four of the five are by region, and the D block, with 10 MHz bandwidth, will be offered as a national license. Reports are that Frontline Wireless, with its public-safety goals, will bid on the D block.