Spectrum Auction Spotlights Wireless Woes

Groups urge FCC to apply auction's open conditions to all wireless networks

WASHINGTON - The start of the Federal Communications Commission's highly anticipated public airwaves auction today is shining a public spotlight on the persistent lack of competition and innovation in the wireless broadband industry.

"The wireless industry is dominated by a handful of companies with a track record of stifling competition and an aversion to the innovation that open networks bring to the market," said Ben Scott, policy director of Free Press. "Putting the promise of the mobile Internet exclusively under their gatekeeper control is a chilling prospect. We need policies that open the closed networks of today and guarantee an open wireless Internet for future generations."

Last summer, more than a quarter-million Americans urged the FCC to use these prized public airwaves to inject much-needed competition and innovation into the stagnant wireless marketplace. The federal agency responded by opening a portion of the "700 MHz" spectrum - made available as part of the digital television transition - to any mobile device and any application.

"These conditions are a step forward - but they only apply to a small slice of the public airwaves on a network that won't be available for years," said Timothy Karr, campaign director of Free Press. "To put the mobile Internet in the pocket of every American, the FCC should open devices and applications on all wireless networks right now."

Since the auction rules were put in place, wireless companies like Verizon and AT&T have issued press statements claiming their networks are already open. But a coalition of public interest groups and tech companies don't want to leave open access up to the incumbents. The coalition is urging the FCC - through the "Skype Petition" - to adopt rules that guarantee open devices and applications on all networks. This would immediately put more choices and greater innovation in the hands of consumers.

The 700 MHz spectrum is valued for its capacity to beam high-speed Internet signals through walls and other obstacles. This "beachfront property" was once heralded as a rare chance to create a crucial "third pipe" competitor to the phone and cable companies that dominate 96 percent of the broadband market. Industry analysts are now predicting that the incumbent wireless carriers are likely to win the top tier license in the auction.

"We've lost a huge opportunity if the 700 MHz auction fails to deliver new service providers to the wireless industry," said Scott. "It points to the urgent need to establish baseline consumer protections across the entire wireless industry that ensure competition and choice thrive in a world dominated by incumbents."

Read the Skype petition here: http://svartifoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6518909730

Read consumer comments here: http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6519408166