FCC Approves Rules for Airwaves Auction

So.. the jury is in, having reached a verdict.

The FCC approved rules Tuesday for the auction of the 700Mhz spectrum, previously used by UHF television and set to be vacated by 2009.

While it does include "open access" rules for approximately 1/3rd of the spectrum that will be available, it is the watered down variety which will allow customers to use whatever phone and software they want on about one-third of the spectrum to be auctioned. While this is a belated step in the right direction, it smacks of compromise, and falls far short of the calls to separate infrastructure build-out from service provision. While various flavors of that model had been debated (particularly after Google declared their interest in bidding), the concept of service providers having wholesale access to the network, with the ability to package, price and deliver differentiated services (much as NextPhase does with DSL and and T1 circuits today, in many markets across the country) is for now, on hold.

As Michael Copps (one of the two Democrats commissioners) said after the vote, the commission "missed an important opportunity to bring a robust and badly needed third broadband pipe into American homes."

A total of 62 megahertz will be auctioned under the plan, with twenty-two megahertz subject to the "open access" rules. Another 10 megahertz will be dedicated to the national public safety network, which will be shared between a commercial operator and public safety agencies.

Tuesday's vote clears the way for the auction, which by law must take place no later than Jan. 28, 2008. It is expected to raise as much as $15 billion.