White Spaces Coalition

The White Spaces Coalition consists of eight large technology companies that plan on delivering high speed (broadband) internet access to consumers via existing 'white space' in unused analog television frequencies. The coalition claims that broadband access is expected to be available at speeds of 10 Mbyte/s and above, and for white space short-range networking to reach 50 to 100 Mbyte/s.^[1] The group includes Microsoft, Google, Dell, HP, Intel, Philips, Earthlink, and Samsung Electro-Mechanics.

700Mhz: Devil In the Details

After the FCC released their 700Mhz broadband spectrum auction rules (pdf) a few weeks ago, there was ample applause that the Commission at least met Google's demands half-way. People assumed that while the FCC wasn't going to force true
open access, they'd at least force auction winners to offer unlocked devices and unimpeded access to content.

We assumed there were loopholes that would allow AT&T and Verizon lawyers to wiggle around the conditions should they win the spectrum, or else those operators
wouldn't have been quite so enthusiastic about the rules. Attorney, ICANN board member and law professor Susan Crawford has had some time to digest the rules and says that yes, the devil is in the details:
Related:

1. Martin Wants 'Open Access' 700Mhz
2. 700Mhz & 'The Highest of Theater'
3. FCC 700Mhz Vote Tomorrow
4. FCC Auction Rules As Expected
5. White Space Broadband: Back To The Drawing Board
6. The Google Phone Is Coming
7. Broadcasters Attack 'White Space' Broadband
8. Frontline Asks FCC to Ban Verizon from Spectrum Auction

Google Intends to Bid in Spectrum Auction If FCC Adopts Consumer Choice and Competition Requirements

MOUNTAIN VIEW, Calif. (July 20, 2007) – Google (NASDAQ: GOOG) announced today that should the Federal Communications Commission adopt a framework requiring greater competition and consumer choice, Google intends to participate in the federal government’s upcoming auction of wireless spectrum in the 700 megahertz (MHz) band.
In a filing with the FCC on July 9, Google urged the Commission to adopt rules for the auction that ensure that, regardless of who wins the spectrum at auction, consumers' interests are served. Specifically, Google encouraged the FCC to require the adoption of four types of "open" platforms as part of the license conditions:

• Open applications: Consumers should be able to download and utilize any software applications, content, or services they desire;
• Open devices: Consumers should be able to utilize a handheld communications device with whatever wireless network they prefer;
• Open services: Third parties (resellers) should be able to acquire wireless services from a 700 MHz licensee on a wholesale basis, based on reasonably nondiscriminatory commercial terms; and
• Open networks: Third parties (like internet service providers) should be able to interconnect at any technically feasible point in a 700 MHz licensee's wireless network.

Restoring competitive balance to the upcoming spectrum auction

Google's Public Policy Blog has one of the clearest explanations of the issues involved with the FCC's 700MHz auction.

In recent days, and especially following Eric Schmidt's July 20 letter to FCC Chairman Kevin Martin, many people have asked us a straightforward question: why don't you just attempt to win the spectrum bidding outright, and then implement an open wholesaling business model yourself? Or, as AT&T has put it, "put up or shut up."...

..."monopoly rents"...

...Third, and perhaps most important, the incumbents have every incentive to preserve and protect their existing business model. Given their investment in all the necessary business inputs, and the relatively high prices and low bandwidth characteristics of their existing service offerings, the incumbents must prevent the entry of potential competitors to the market. In a spectrum auction, this means paying whatever it takes to block new entry. Not surprisingly, economists call this a "blocking premium." ...

...Recent studies have confirmed that this is a pervasive aspect of the FCC auction environment. ...

...
Un-skewing the spectrum auction
When looking at the combined impact of the incumbent blocking premium and the incumbent dilution discount, it's easy to see how FCC auction results become skewed.
Ironically enough, it is Google that has been accused
of attempting to skew the auction structure, by our recommendation that the licenses be conditioned on certain "open platforms" requirements.
Of course, as we have explained it is the current auction system that skews the results away from potential new entrants and in favor of existing incumbents. ...

...While Google embraces the kinds of openness and innovation that are the hallmark of the Internet, the incumbents apparently prefer their existing business models. That of course is their prerogative. However, open platforms -- specifically, open applications, open devices, open wholesale services, and open network access
-- together make the spectrum more valuable to Google, or any other potential bidder seeking to create innovative, higher-speed, lower-priced offerings. ...