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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.
Google bluffing on 700MHz bid?
With the stage primed for a heavyweight fight between Verizon and Google in January's 700MHz wireless auction, there's some chatter today that Google might actually be bluffing. Bloomberg is reporting that some analysts think that Google has been simply making a lot of noise so that the FCC would enact those controversial open-access rules, but that it doesn't intend to place bids beyond the $4.6B minimum. That strategy would mean that El Goog would get an open network upon which to play, but not have to pony up for the actual towers and infrastructure. Of course, this flies in the face of nearly everything else we've heard to date, like Google pronouncing that it's putting "money where our principles are," and possibly even building a secret test network on its campus, but it's not necessarily unthinkable -- with carrier partners in the OHA and Verizon's surprising decision to open its cell network, it certainly seems like Google's getting pretty good at manipulating airwave politics.
Verizon Wireless abandons fight over 700MHz auction rules
Worried that Verizon's complaints about the open-access rules in the upcoming 700MHz spectrum auction would shake things up in a negative way? As of now, your anxiety is apparently unfounded. According to The New York Times, Verizon Wireless has "abandoned its legal challenge of the Federal Communications Commission's rules for its auction of radio spectrum, removing a potential obstacle to the much-anticipated sale." Interestingly, there's not a lot of backstory as to why the carrier suddenly decided that pressing on wasn't in its best interests, but we'll accept the white flag, regardless.[Via ZDNet]
FCC delays 700MHz spectrum auction by 8 days, finalizes bidding rules
Back in August, it seemed pretty certain that the 700MHz spectrum auction would go down on January 16th of next year. Now, however, the FCC has officially delayed the auction by eight days to "provide interested parties with additional time after this announcement of competitive bidding procedures to develop business plans, assess market conditions and evaluate the availability of equipment for new 700MHz band services." Reportedly, the aforementioned parties only have from November 19th to December 3rd to fill out a short-form license application, and if all goes as planned, a "mock auction" should commence on January 18th, 2008. If you'd like to get into all the reserve prices, upfront payment deadlines and top secret details about the hors d'oeuvres that will likely be served at the forthcoming event, feel free to hit the read link for all 122 mind-numbing pages. [Warning: PDF read link][Via PhoneScoop]
Verizon files lawsuit over open-access rules in 700MHz auction
Talk about gettin' riled up. Verizon Wireless has reportedly "challenged in federal appeals court the FCC's 700 MHz open-access rules," claiming that the auction "violates the US Constitution, violates the Administrative Procedures Act, and is arbitrary, capricious, unsupported by the substantial evidence and otherwise contrary to law." Once you're done swallowing that mouthful, it'll likely be difficult to resist rolling your eyes, as it's pretty clear whose interests are being looked after in the suit. Nevertheless, neither Verizon Wireless nor an FCC spokesman would comment further on the filing, but needless to say, at least one carrier isn't exactly kosher with that succulent 22MHz block of spectrum being so open.
Google still likely to bid in 700MHz spectrum auction
We know, the 700MHz soap opera is wearing a bit on us too, but just in case you were worried that the latest FCC shakeups would deter Google from coughing up $4.6+ billion when the time was right, fret not. Reportedly, Chief Executive Eric Schmidt "told a conference of regulatory and industry leaders in Aspen that his company would 'probably' move ahead with plans to bid for wireless spectrum freed up once broadcast television networks switch to digital from analog in 2009." When asked by T-Mobile USA's government relations chief Thomas Sugrue "whether Google planned to take part in the auctions for wireless broadband networks," the exec simply stated that placing a bid or two would likely be "the way to answer that." So, there you have it -- until next episode...
Google 'still very interested' in 700MHz spectrum auction
Just in case you had any suspicion that Google may retract its interest in bidding for the 700MHz spectrum after the rules neglected to afford the winner wholesaling rights, Chris Sacca has intervened to clear things up. According to the search giant's head of special initiatives, the firm is "still very interested in the auction" despite not getting all of the rules for the spectrum sale set in its favor. Of course, the FCC did choose to approve the whole "open access" bit, and while Mr. Sacca declined to elaborate in order to keep details of Google's strategy on the DL, it seems safe to say that it will indeed be busting out the checkbook come auction time.
DirecTV-DISH consortium all but dead in spectrum auction
As the historic federal auction for wireless spectrum heats up and the proverbial wheat begins separating from the chaff, the first major victim of the escalating bidding war seems to be the satellite TV consortium composed of DirecTV and DISH-parent EchoStar. Combining their resources in the Advanced Wireless Services auction as a limited liability corporation known as Wireless DBS, the two companies were hoping to pick up a chunk of spectrum that they could use to offer WiMax broadband services to customers and compete directly with telcos offering so-called "triple-play" packages; currently, the two sat TV providers have only been able to offer Internet service through partnerships with established broadband carriers. Apparently the billion dollars that Wireless DBS was willing to spend ended up not being enough to cover the requisite regional licenses they would need to offer nationwide service, as the cost for such such complete coverage is now anticipated to be at least $4 billion. The next move for the satellite providers could involve either partnering up once again with a company like Clearwire, or waiting until next year to bid in the 700MHz auction -- but that auction could see even higher bids, and the resulting spectrum would be unavailable for use until 2009. Sorry guys, we know how badly you wanted this one, but when you come to a gun fight equipped with nothing but a pocketknife, well, things are bound to end pretty poorly.[Via Techdirt]
DirecTV and EchoStar talking merger again?
Nature abhors a vacuum, so now that the AMD/ATI deal has gone from rumor to reality, we're in dire need of another potential mega-merger to fill the void. Luckily for us, News Corp. owner and the real "king of all media" Rupert Murdoch recently made some tantalizing comments on the Charlie Rose Show that may indicate DirecTV's renewed interest in merging with Dish Network parent EchoStar. Although he obviously didn't come right out and say that the two companies were involved in talks of any sort, Murdoch did suggest that the television landscape has shifted enough since the last merger attempt in 2002 that "it would be much harder for the government to turn it down" this time around. However, he also cautioned that a deal would be difficult if EchoStar CEO Charlie Ergen -- whose clashes with News Corp. execs reportedly put the kibosh on merger talks all the way back in 1997 -- insisted on running the new entity as one of EchoStar's conditions. Ars Technica sums up the situation nicely by suggesting that although a merger would help both companies in their quest to offer broadband service should they succeed in picking up some spectrum at next month's FCC auction, government regulators would be unlikely to approve such a deal for the same reason as last time: there are still too many consumers out there whose only option is satellite TV, giving a combined DirecTV-Dish entity monopoly status in certain areas of the country. Long story short: there's an excellent chance that Murdoch would love a deal to go down, but chances are it ain't gonna happen.[Via Ars Technica]
M2Z Networks pitches free national wireless broadband to FCC
It might be a bit far-fetched, but M2Z Networks is offering an interesting deal to the FCC in exchange for a bit of that high priced spectrum that's about to be auctioned off. The plan is to provide free ad-supported national 512Kbps wireless broadband, along with a premium service, using the spectrum in the 2155-2175MHz band. In exchange for the spectrum use, M2Z would give the FCC five percent of their gross revenues. We wouldn't think the FCC would ditch their normal auction method for just any hair brained scheme, but M2Z was started by former FCC wireless head John Muleta and @Home founder Milo Medin, and claims to have access to $400 million in capital. Free national wireless broadband is also surely in the public's interest, so this just might work after all.[Via WNN]
