Thursday, July 19, 2007
AT&T Back-Pedals on Auction Rules
AT&T has been whining [.pdf] about FCC Chair Kevin Martin's proposed 700 MHz auction rules, calling them "Google's rules" and saying, e.g., that they, "would inhibit broadband deployment by keeping the spectrum out of the hands of those that value it most," -- that's the telcos, dontchaknow -- and threatening that the Martin rules, "would invite a serious legal challenge." See my previous post on this.
(Never mind that the Martin rules don't require the winners to offer the public's spectrum at wholesale rates, and there's no 700 MHz spectrum whatsoever that will be administered like Wi-Fi is.)
But now AT&T's singing a new song. Leslie Cauley, at USA Today reports that AT&T has now flipped -- now it endorses the Martin auction rules! She writes:
"Woohoo!" you might think. But, says Cauley, you might be wrong. Martin's no Google stooge. She ends the article like this:
So the new scenario is that the whole auction is priced way too high. The FCC "does its duty" by holding the auction on time, but golly, where are all the bidders? [Note: scenarios always come in sets, with their alternatives.]
Meanwhile, if we had just a sliver of 700 MHz under Wi-Fi-like rules, we'd show all of them who values it the most. In our dreams.
Harold Feld's erudite inside take on the whole 700 MHz mishigas here, here, and here, undoubtedly with more to come.
(Never mind that the Martin rules don't require the winners to offer the public's spectrum at wholesale rates, and there's no 700 MHz spectrum whatsoever that will be administered like Wi-Fi is.)
But now AT&T's singing a new song. Leslie Cauley, at USA Today reports that AT&T has now flipped -- now it endorses the Martin auction rules! She writes:
"We think Chairman Martin's plan is a creative compromise that balances the interests of companies and consumers," said Jim Cicconi, AT&T's senior executive vice president of public policy.As for AT&T's explicit written objections [,pdf] to the rules, Cauley writes,
Cicconi says that is patently wrong. "That was never the case. Nor did we ever say that."
"Woohoo!" you might think. But, says Cauley, you might be wrong. Martin's no Google stooge. She ends the article like this:
Cicconi described Martin's plan as a "put-up or shut-up" to Google and other companies that endorse a wholesale approach. "It's a big block (of spectrum) and it would allow them to offer a national service if they are serious about doing that," he added.
Cicconi noted that if the bids aren't rich enough (the FCC has set a "reserve" price) the agency will pull back the spectrum and re-auction it without the consumer choice rules.
The upshot: If bidders sit it out, or don't ante up, the FCC could wind up dropping the open-device requirement. Cicconi declined to comment, saying only that AT&T would decide its bidding strategy once the FCC's rules are finalized.
So the new scenario is that the whole auction is priced way too high. The FCC "does its duty" by holding the auction on time, but golly, where are all the bidders? [Note: scenarios always come in sets, with their alternatives.]
Meanwhile, if we had just a sliver of 700 MHz under Wi-Fi-like rules, we'd show all of them who values it the most. In our dreams.
Harold Feld's erudite inside take on the whole 700 MHz mishigas here, here, and here, undoubtedly with more to come.
Technorati Tags: AT&T, FCC, 700MHz, Spectrum
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