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FCC Approves ‘Open Access’ Wireless Rules For Spectrum Auction;  Will Not Require Wholesale Access

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The FCC’s vote on rules for the upcoming 700 MHz spectrum auction are in and it looks like “open access” has won out—to some degree. The “open access’ provision championed by FCC Chairman Kevin Martin passed with the support of the two Democrats on the commission; with that in place, one-third of the 62 megahertz network to be auctioned will be an open zone for handsets and software. But, as AP reports, the more ambitious provision requiring a licensee to sell access wholesale—sought by Google and others—did not make the cut. That could mean Google will not take part in the auction next year. More to come.

SEE ALSO: FCC To Vote On Auction Rules Next Tuesday; What Would Open Access Mean?

Update: Unlike AP, CNBC sees this as a big win for Google ... providing assurance that Google won’t face interference in software distribution. That’s close to the most positive spin possible given that “open access” will only apply to one-third of the spectrum sold—meaning that for two-thirds, access will remain at the licensee’s discretion. That should allow Google to open access if it participates in the auction and wins—and gives others the option to stay closed.

Reuters: “That requirement will apply to the 22 megahertz spectrum to be sold to commercial providers and the agency set a suggested $4.6 billion minimum for those airwaves to be sold, according to the FCC.”

WSJ: Republican commissioner Roger McDowell, who has been unafraid to the buck the tide since his arrival, went against the rest on part of the vote. In what was perceived as a clear reference to Google’s lobbying, McDowell said: ““Large, wealthy corporations interested in particular business plans do not need the government’s help in this auction.” He didn’t want any conditions attached to the sale.

—“Under the FCC’s rules, companies purchasing one large part of the airwaves would have to allow any hand-held device to be attached to the network they eventually put in place. This could dramatically change competition in the U.S. cellphone industry.”

—Roughly 10 megahertz will go to a single commercial operator obligated to form a public-safety partnership for wireless broadband access.

—The other half will be sold in smaller parcels, probably to smaller local and rural companies.

Jul 31, 2007 2:28 PM ET

Posted In: Legal, Regulatory, Companies, Google

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