SpectrumAuction
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Dutch officials contemplate barring KPN, T-Mobile and Vodafone from spectrum auction
A spectrum auction looms on the horizon in the Netherlands, but three of the country's largest players may be excluded from participation. As you know, earlier this week, Dutch authorities raided the offices of KPN Mobile, T-Mobile Netherlands and Vodafone Netherlands in a price-fixing investigation. The Netherlands Competition Authority (NMa), which carried out the raid, stressed that its visit does not mean the operators are guilty of collusion or hint at the outcome of its investigation. Now, Dutch lawmakers and the country's Minister of Economic Affairs must come to a decision about the auction that's set to take place in the spring of 2012 -- which is likely to be well in advance of any final report from the NMa. One option tossed around has been to postpone the auction, though, as lawmakers point out, this could hinder the development in the mobile space and further limit competition. Alternately, had any of the named companies actually profited from the alleged collusion, there's a risk that these monies could be used to purchase additional spectrum and further extend their dominance. Those discussing the matter hope to move quickly, though it certainly seems difficult to make any decision of this magnitude lightly.
UK 4G network auction delayed, spectrum sell-off pushed back to the end of 2012
The dizzying world of 4G speeds remains a distant prospect for Britons, with telecoms regulator Ofcom deciding to delay the auction for the next generation of mobile spectrum. It was looking to sell off two potent bands of wireless network by the end of this year, but those plans have been put on hold by some legal jostling and desk-banging from UK carriers, with the British equivalent of the FCC saying it received several "substantial and strongly argued responses." The sell-off delay might not affect any launch dates for 4G (already being tested in rural parts of the UK), as the bands up for grabs still won't be available until 2013. But eventually all of this to-ing and fro-ing will test even the Brits' stoic patience.
UK 4G spectrum set to be auctioned off next year
Ofcom, the UK version of the FCC, is currently sitting on two fat bands of prime 4G spectrum, at 800MHz and 2.6GHz, but it won't be doing so for long. This morning has seen an announcement from the independent regulator that it's looking to sell off those airwaves to the highest bidder, as early as 2012, pending the conclusion of a consultation on how to ensure the auction helps promote, rather than stifle, competition. The 800MHz band comes directly from spectrum freed up by the country's transition to digital television, and together with the 2.6GHz is equivalent to three quarters of all the mobile spectrum the UK uses today. The usual suspects of O2, Vodafone and Everything Everywhere will be vying for prime position in the next wave of superspeedy internet ... we just wonder how 3G-centric network Three will react to the news. [Thanks to everyone who sent this in]
Obama announces plan to free up 500MHz of spectrum, invest in 4G for rural areas, and build out nationwide public safety network
We knew the White House was on board with the FCC's desire to free up an additional 500MHz worth of spectrum over the next decade from private and federal holders, as announced last year, and now Obama has announced the plan to do it. The plan is to incentivize the current spectrum squatters with a share of the revenue gained from auctioning off the spectrum -- mostly for mobile broadband use -- which only seems fair, and for now it seems those auctions will be voluntary. But that's just the tip of the iceberg: the plan also includes a $5 billion investment in constructing 4G networks in rural areas (with a goal to reach at least 98 percent of Americans with the service), a $3 billion fund for 4G R&D to help the rollout, and $10.7 billion for a wireless public safety network. The beauty of this plan is that all these proposed costs are offset by the spectrum auction, which is estimated to raise $27.8 billion, of which $9.6 billion will be dedicated to deficit reduction. Oh, and the best news? The government has already found 115MHz worth of Federal spectrum that it can free up by using its other spectrum more efficiently, and has another 95MHz worth in its sights. Hit up the source link to see President Obama's speech on the subject, which has just begun, or check it out embedded after the break.
Public safety agencies want D Block for themselves, FCC still seeking auction
The 700MHz 'D Block' has been the subject of much debate over the past few years, primarily because the FCC's master plan to auction it off -- yet require the winner to open up the waves for public safety use on command -- didn't exactly pan out. Post-failure, the agency made clear its plans to host up another auction or two in order to accomplish the same goal via slightly different means, but now public safety entities are coming forward with a healthy amount of opposition. Rob Davis, head of the San Jose Police Department, puts it bluntly: "If they auction this spectrum, we've lost it forever." These public safety officials also have allies in Congress, with many worried that auctioning off the spectrum may lead to an inability to accurately wield bandwidth in a hurry if needed during a national emergency. The FCC plan also alleviates the cost issue, but public advocates have a solution there as well -- they say that if given the 'D Block' outright, they could "lease excess airwaves to commercial carriers since they would not always need all of it." Of course, that's a pretty big assumption about the willingness of carriers to lease space, and we suspect a lot more back-and-forth will go on here in the coming months. Oh, the drama.
Australia to pay Telstra A$11 billion for entire copper network
The Australian government just found the infrastructure for its A$43 billion national broadband project and eliminated its largest competitor in one fell swoop -- pending shareholder and regulator approval, Telstra will receive A$11 billion of that money in exchange for its entire landline network. Telstra will decommission its monopoly of copper cables to make room for the government's fiber and migrate its customers to the resulting 100Mbps National Broadband Network (NBN) as those light-bearing threads roll out. While Telstra might become a smaller player in the internet and cable business without a land network of its own, it may get even larger in the wireless space -- the company says it's received "written confirmation from the Prime Minister" that it can bid on a chunk of precious LTE spectrum should the deal go through. Press release after the break.
FCC expects 700MHz 'D Block' to see auction in 2011
Birds fly, grass grows, and the FCC auctions off wireless spectrum. It's just one of those inevitable facts of life. In 2008, the Commission sure sold plenty of the stuff, with both AT&T and Verizon trading billions of dollars for enough building-penetrating 700MHz bandwidth to start LTE networks (that's 4G, vaquero!) as early as next year. One huge chunk of spectrum didn't sell, however: the infamous Block 'D,' subject to a unique FCC mandate that required it to be shared with first responders and government agencies for public safety. Last we heard, 'D' was in limbo awaiting a new auction, but Reuters reports that said wait may be nearly over. According to Jamie Barnett, the FCC's Chief of Public Safety, the entity could test the waters as early as this summer, and start Auction 76 in earnest by Q1 or Q2 of 2011. Who might bid at that late date is still uncertain -- would-be 4G competitors will be way behind Verizon and AT&T by that time -- but it seems a mighty fine idea for paramedic phones to work while buried under rubble, regardless.
Spectrum cash-out option might still be on the table for FCC, broadcasters
Silly us for thinking this issue had been drawing to a close! Indeed, rumors are swirling again that the FCC is looking into the concept of getting television broadcasters to trade in some spectrum in support of the nation's universal broadband initiatives -- initiatives for which significant additional airspace is likely needed, and for which the Commission is expected to file its master plan to Congress next month. The latest information from BusinessWeek says that companies might be offered the opportunity to share in the monetary spoils of any auction that would come out of reclaimed spectrum, a privilege usually reserved for the government's coffers alone. It's unclear whether the move would be voluntary, "voluntary," or compulsory, but any strong-arm move on the part of the Fed is likely to get some hellish pushback from the nation's broadcasters -- they cherish their spectrum as much as they ever have and many feel as though they're finally on the cusp of capitalizing on the promise of mobile TV. Even with significant cash incentives, this could easily become a battle royale for years to come.
Ad & broadcasting company tells government to give everyone HDTV
Being primarily focused on the consumer end of HDTV, we've rarely crossed paths with news from DG FastChannel, but this stopped us in our tracks. Put simply, it's a proposal to turn around some of that analog TV spectrum sale cash and distribute an HDTV to every household in the U.S. that wants one, digital converter box-style (everyone remember how well that worked out?) Considered seriously, we'd assume companies like DG FastChannel and its partners have invested greatly in preparing for HDTV and would love if all their viewers could see it that way, and we can certainly appreciate the idea that watching standard def is fundamentally wrong. Still, new digital divide or not this attention grabbing bit of PR probably has about as much chance of getting high definition in every home as there is of another DTV switch delay in the next three days.
Verizon CEO joins AT&T in backing digital TV delay -- as long as it's short
After initially opposing the Obama administration / Jay Rockefeller digital TV delay -- pushing the analog TV shutoff date back from February 17 to June 12 -- Verizon CEO Ivan Seiderberg has jumped on board with competitor AT&T in support of the plan. Considering Verizon just dropped $9.63 billion on the soon / not-so-soon to be vacated airwaves for its 4G wireless rollout this is an interesting position to take, but it appears that as long as the delay is a mere 115 days he can join AT&T ($7 billion or so invested) in waiting for the DTV converter coupon program to work itself out. Of course, if anyone wants to take advantage of the extra time to subscribe to FiOS or U-verse, we're sure that wouldn't be problem either.
Ofcom looks to promote pay-TV competition
We've known that a few good souls over in the UK have been fighting for more high-def for some time now, but a new report from across the pond asserts that Ofcom -- the independent regulator and competition authority for the communication industries in the United Kingdom -- has placed the "release of spectrum through the digital dividend at the top of its priorities, and promoting competition in pay-TV." It's also nearing a decision on whether it will forge ahead with proposals to force Sky to "offer some of its premium channels as part of a wholesale offer in spring 2009." In all honesty, it's tough to digest what exactly all this legalese means for the average UK content viewer, but so long as someone up top is pushing for more competition, we guess it can only result in a net positive.
DISH Network's small spectrum buy leaves analysts perplexed
Although AT&T, Verizon and the rest of the telco gang stole the limelight (and threw down some serious coinage) at the conclusion of the recent spectrum auction, little ole DISH Network managed to get in on the action, too. Apparently the satellite provider scooped up 6MHz of bandwidth that would cover around 75-percent of the US, but analysts are still scratching their heads trying to figure out why. Its sliver would reportedly enable it to launch a mobile TV service, though most assume it wouldn't jump in with a number of providers already out there trying to stay afloat. It could also use its winnings to enable STBs to report viewing habits and utilize two-way services without being hooked up to a phone line. Nevertheless, Craig Moffett, an analyst at Sanford C. Bernstein, asserts that there are simply "more questions than answers at this point," so we reckon we'll just keep on testing our patience for now.
700MHz C-block hits reserve price -- open access is here
There was a brief, tense pause in the bidding this morning, but some anonymous giant telecom company (Google, perhaps?) has just pushed the price of the 700MHz C-block over the FCC's reserve price of $4.6B -- and the rest of us straight into the promised land of open access. Yep, January 31, 2008, Round 17 will be the day to remember -- to think it was all a dream, we used to read Free Spectrum magazine.[Thanks to everyone who sent this in]
Update on the 700MHz auction: "C" block at $4.3 billion and rising
Here's some up to date 700MHz bidding news for you. Currently, bids on the hotly contested "C" block have risen to almost $4.3 billion, or just a few dollars away from the FCC's reserve price of $4.6 billion. That number puts us perilously close to triggering the "open-access rule" which pretty much everyone (Google especially) has been clamoring for (or fighting). The total bids on the spectrum are also hovering near the $10 billion mark, which has been the FCC's goal all along, ostensibly demonstrating that everything is going according to plan. There is one small snag, with the "D" block -- the public safety / first responder band -- not seeing the kind of action the agency had hoped for, nabbing only $472 million in bids, a far cry from the minimum requirement of $1.6 billion. Of course, bidding has six weeks to go, so no one seems to be sweating just yet, though "lawmakers" are swearing they'll take "quick action" if the numbers don't rise.[Thanks, Aaron]Read -- 700Mhz Auction Approaches $10 BillionRead -- House Panel Bird-Dogging 700MHz Auction
The FCC's 700MHz auction: what you need to know
Alright, alright, everyone calm down -- yes, today marks the beginning of 2008's Super Bowl of wireless spectrum auctions, but unfortunately, there won't be much to see. No 24-hour television coverage of the intense action, no live webcams of the FCC's wacky, wild, no-holds-barred trading floors; heck, not even an official update from the Commish or any of the bidders. Why's that? Glad you asked. Let us quickly break down what the auction's all about and what it means to you: The auction, known officially as Auction 73, is made possible by the move from analog to digital television, which frees swaths of bandwidth in the 700MHz range. This represents one of the last frontiers of nationwide RF spectrum that is expected to be available and practical for consumer use any time soon, which has generated intense interest and even more intense scrutiny. In an effort to stem collusion, the FCC is being extremely secretive about the applicants for bidding, saying only that there is a total of 214 bidders involved. They've also told bidders that they aren't allowed to publicly disclose anything about the auction or their bids before the auction's over, lest they forfeit the whole shebang. We do know that AT&T, Verizon, Cox, and most famously, Google are all committed to bidding. Auction 73 is broken into a total of five "blocks." Block C is by far the most coveted of the five because it contains the most bandwidth -- 22MHz in total, broken into two 11MHz pairs -- and also because it consists of fewer regions, making it easier to assemble a contiguous, nationwide network. Blocks A, B, and D should see some action, too, while Block E is the redheaded stepchild of the bunch with only one 6MHz piece of spectrum to its name. The FCC has ordered that the winner of the Block C auction must commit to creating an open-access network, meaning any device capable of supporting the appropriate protocols must be allowed to connect and enjoy 700MHz bliss. Bidding begins today, January 24, in two consecutive rounds. Starting tomorrow and each business day thereafter, there will be a total of three bidding rounds. After each round concludes, the FCC will disclose to bidders the current asking price for each block without revealing anything about the winning bidders. Bidding continues indefinitely until no additional bids are placed. The reserve price for Block A is $1.81 billion; Block B, $1.37 billion; Block C, a whopping $4.64 billion; Block D, $1.33 billion, and Block E, $904 million. If at the end of bidding any reserves have not been met, a new auction, Auction 76, will automatically be spawned. The FCC's open-access requirement on Block C would be dropped if it makes it through to Auction 76, fueling rumors that Google intends to bid it up to the reserve price then drop out. The date and new reserve prices for the remaining blocks would be decided when (and if) it's determined that Auction 76 is necessary. There is no "Buy it now!" button, we hear, and the FCC has a stellar feedback rating. Don't worry, bidders, the FCC isn't going to screw you on shipping and handling for the wireless spectrum you've already paid top dollar for. So there you have it. As dry as that summary may be, it pales in comparison to the piles upon piles of literature the FCC has generated (as one might expect from a government bureaucracy of the highest order) and it's really about as boiled down as we can get it for the moment. We won't know who won, where the bidding stands, or what firms plan to do with their blocks until the conclusion of the auction -- a conclusion that could come tomorrow, next week, or next month. Rest assured, though, we'll have plenty more coverage as soon as this all shakes down.
700MHz auction set to begin tomorrow, suits in a tizzy
After months of fevered debate, last minute legal maneuvering, bitchy press releases, and drastic reversals of course, the most boring part of the 700MHz saga begins tomorrow: the actual auction. Yep, the pre-battle snipefest between Google and Verizon is over, the last participants have registered, and the FCC has set a minimum price of $10 billion per five blocks of spectrum, so it's time to ante up. Of course, the auction will take two months and is totally confidential and sealed, so we won't know how anything plays out until March, but the FCC will be posting each day's bid anonymously on it's web site, so that'll be fun. Interestingly, most analysts are predicting that Google will walk away empty-handed after making a token bid at the outset, since it's basically already won all the open-access provisions it wanted. Of course, that doesn't explain why we've heard that there's a secret 700MHz test network down in Mountain View and Ed Schmidt has said that he'll put Google's "money where our principles are," but again -- we won't know till we know. Paddles up!
FCC's full list of 700MHz auction applicants
We're sure you've heard most of the notables by now -- such as Google (applying as Google Airwaves Inc.), Verizon, Qualcomm, Cox, Frontline, AT&T, EchoStar and Paul Allen -- but there are a total of 1,099 various licenses available for the 62 megahertz up for grabs, and a whole lot of regional carriers are in the mix. FCC finally has a full list for your perusal, and the final tally reached 266, though a fair number of those might not make it to the actual auction. Apparently two thirds of applications were deemed "incomplete," meaning they have until January 4th to revise their application and put in their upfront payment. Notables on the list of incompletes include AT&T, Cox and Qualcomm. The full list of applicants is after the break.
Who's in on the 700MHz auction?
Feel free to shout it out in the comments, we know y'all are gunning for a piece. What's that? Don't quite have enough change in the couch to hit the $4.6 billion minimum bid on the 700MHz C block? How lame. Lucky for us, there are quite a few companies out there that do have that kind of cash earmarked for this and other highly desirable parts of the spectrum, which should make for some exciting bidding. Too bad FCC's auction process, which begins on January 24th, is totally blind, and with the exception of the few companies that have publicly stated their intentions to bid, we won't know much about how the auction went down until February or March. The following, however, are confirmed: AT&T; T-Mobile says it already has plenty. Cox Communications; Time Warner and Comcast aren't biting. Frontline; gunning for the D block. Google; might just do the minimum to ensure the C block is "open." Verizon; Sprint is busy with WiMAX. Sounds like slim pickings, but there a bunch of wild cards out there, including satellite providers, smaller wireless carriers and even big box retailers.[Via paidContent.org]
Cox says it's bidding on 700MHz spectrum
Looks like being partners in a company called "SpectrumCo" just isn't what it seems -- although Comcast and Time Warner Communications have already dropped out of the 700MHz auction running, upstart Cox Communications has announced that it's ready to bid at least the $4.6B minimum in January's auction to try and get a little piece of the pie. Cox says it's trying to bundle all its products together, and that the airwaves will allow for greater mobility and convergence -- or, put more simply, "We like having options." Of course, it's got to muscle out all the other players first, but at this point it certainly seems like anything could happen.
Comcast, Time Warner not interested in 700MHz auction
In what is surely a sign that the mania around the upcoming 700MHz auction is reaching absurd levels, cable operators Comcast and Time Warner Communications both issued press releases today confirming that they would not be bidding in January's auction. You might recall that both Time Warner (which is owned by Engadget's parent company's parent company) and Comcast are part of SpectrumCo, which snapped up 137 licenses covering 20MHz of spectrum the last time the FCC put airwaves on the block, so there was some speculation that the venture might ante up again this go 'round -- especially since TWC CEO Glenn Britt was running around making vague proclamations about it. Still, it looks like Sprint's exit from the alliance was enough to shelve any such plans, so it looks like the big players are still Google and Verizon. Good thing too -- with this much hype over Good vs. Evil, the racket over Good vs. Evil vs. More Evil vs. Frustratingly Incompetent would be deafening.
