700MHz Auction Coming Soon
More companies are begin bidding on a section of the 700MHz spectrum that had previously been used by analog TV. This auction, however, has engendered much more media interest than past FCC auctions, in part because of the spectrum’s features but also because of the companies participating in the sale.
The section of the 700MHz spectrum the FCC is auctioning off is composed of five different blocks. Of these, the A, B, and E blocks are further divided into smaller regional areas. These sections of the spectrum are of most interest to regional carriers hoping to fill out their networks. Unlike the other blocks, the D block is being sold as a single, nationwide license, however, there is one caveat: The spectrum must be given up to public safety officials in times of emergency. Allen Nogee, a principal analyst at In-Stat, explains that this makes the license most attractive to a big operator that can use other spectrum if the D block has to be given up.
The most attention, though, has been paid to the C block, which is divided into 12 regions. The C block is valuable because it has much stronger penetration than traditional cell signals and because of the FCC’s acceptance of open access rules that Google fought for, assuring that the spectrum will be open to essentially any type of device from any manufacturer.
Nogee believes only a handful of the 100-plus bidders are serious competitors for the C block. Of them, Verizon, Google, and AT&T are at the top of the heap, with Verizon having the best chance of winning. The company new policy of glasnost, after a long period of Soviet-style suppression of its network, going so far as to strip features from handheld devices, suggests a serious change in its business model.
