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Early 700 MHz Auction Could End Chances for Cyren Call Legislation

Holding a 700 MHz auction in Aug. or Sept. would put Cyren Call in a tough position on Capitol Hill, trying to find a legislative vehicle in a matter of a few months to which it could attach its proposal for a 30 MHz public safety broadband set-aside. DTV legislation approved by Congress in 2006 requires that the 700 MHz auction start by Jan. 28, 2008, but FCC Chmn. Martin said Wed. an auction could start as early as Aug. (CD Jan 18 p4).

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Cyren Call, led by Nextel founder Morgan O'Brien, is making the rounds on Capitol Hill, several lobbyists and Hill sources told us, but the general consensus is that it would be an uphill climb for the company to get legislation passed. Those who find the company’s idea interesting say the timeframe is too short. “It’s a creative idea, no doubt,” one lobbyist said. But given the number of issues Congress is fielding this probably isn’t the time it can handle something so complex.

“With the 700 MHz auction looming, “Cyren Call has very little runway left to get something done,” former FCC Chief of Staff Bryan Tramont said during panel discussion in Cal. “Verizon was in there lobbying to move the date up,” said an industry source: “It makes perfect sense because that’s the easiest way to kill Cyren Call.”

Public safety groups, who support a 30 MHz set aside, are still deciding whether to oppose an early auction start. “People who would like to see [Cyren Call] not happen would like to see that auction happen as soon as possible so that we don’t have a chance for success,” said a public safety source. “Obviously, the success of our proposal is dependent on there not being an auction for the whole 60 MHz.”

“Contrary to what has been reported in the press, Cyren Call does not favor any postponement of the upcoming 700 MHz auction,” Cyren Call said in a statement. “To the contrary, Cyren Call feels a sense of urgency for Congress and the FCC to put the “policy horse” before the “spectrum auction cart,” thereby facilitating sound spectrum policy decisions about the future of public safety communications.” Unresolved issues about the use of the spectrum remain, the company said: “Before rushing to an auction, shouldn’t Congress and the FCC first resolve important, outstanding issues related to 700 MHz, so that both public safety and existing or potential commercial operators can plan to put that spectrum to use rationally and rapidly.”

Sources view an early auction as a victory for Verizon Wireless in particular, which has been quietly pushing a proposal for a 12 MHz public safety broadband network using half the 24 MHz of 700 MHz spectrum public safety is to get following the DTV transition (CD Nov 16 p2). Verizon Wireless has been actively promoting its plan as well, enlisting a number of high profile proponents, including former NTIA Dir. Nancy Victory, who’s considered close to Martin. Verizon and other members recently brought the High Tech DTV Coalition out of mothballs to oppose Cyren Call on the Hill (CD Jan 17 p1).