McDowell Says Small Carriers Will Have Time to Prepare for 700 MHz Auction

“I'll take a look at it,” McDowell said of the Skype petition: “At first blush, and being somewhat familiar with Carterfone, there are a lot of distinctions to be made, but I certainly appreciate the spirit of the filing.” The FCC this week extended the deadline for comments on the Skype petition, based on a joint request by Skype and CTIA saying both sides need time. Comments are due April 30, a month later than the original due date; replies, May 15. McDowell again called for an early 700 MHz auction. But he told us he’s sensitive to concerns of small carriers asking for lead time between auction rules’ release and the auction’s start. Small carriers need time to line up financing and otherwise prepare, they say. “The chairman is saying October or November” for an auction start, he said. “The fact that it’s slipped from late summer to midfall is the extension of time they need. We're going to give [small carriers] time. Look for April or maybe May for the rules to come out and let’s start the auction in October or November.” McDowell hopes the FCC will use lessons from the AWS auction, including the need to offer geographically small spectrum licenses, to guarantee that small bidders are also active in the 700 MHz auction, he said. “In last summer’s extremely successful AWS auction, 55% of winning bidders identified themselves as ’small’ or ‘very small’ businesses, rural telephone companies and businesses owned by members of minority groups or women,” he said: “I would urge that we enhance and improve upon the positive aspects of last summer’s auction to provide a second meaningful opportunity for participation in the upcoming 700 MHz auction.”

McDowell endorsed partnerships between public safety and commercial operators. “I recently read that our nation’s emergency response providers typically pay $3,500 - $5,000 each for radios alone,” he said. “That’s right -- radios alone. Let’s do the math. Here in Washington, D.C., there are roughly 10,000 public safety ‘boots on the ground.’ That translates to an outlay of between $35 million and $50 million just for radios.”

The FCC must seek regulatory parity, he said. “With respect to video franchising, I pressed for a follow up, fast-track rulemaking to quickly build a record on the possibility of extending the de-regulatory benefits set forth in our recently released order to all video providers, be they incumbent cable providers or over-builders,” he said: “We will release that order no later than September. All market players deserve the certainty and regulatory even- handedness necessary to spark investment, speed competition, and make America a stronger player in the global economy.” -- Howard Buskirk

FCBA Notebook…

House Commerce Committee aide Johanna Shelton said Rep. Dingell (D-Mich.) isn’t pleased with how the FCC has handled the Do Not Call complaint backlog. Before this week’s House hearing, Chmn. Martin detailed dozens of staffers to get a handle on complaints, some lodged in 2003. “After 4 years the consumer gets an official looking letter that the FCC… is seeking more information,” she said. Shelton said there are “some real questions” about whether everyone is “treated fairly” by the FCC. ----

Speakers at the conference agreed that making more spectrum available quickly will spur broadband deployment, especially with the growing importance of wireless broadband. Speakers disagreed on whether enough unlicensed spectrum is being offered. “There has been an over-reliance on spectrum auctions,” said Andrew Schwartzman, pres. of the Media Access Project: “An auction system promotes a handful of players with deep pockets.” He said carriers have engaged in “very sophisticated conspiracies” in bidding that protects incumbents. But Kathleen Ham of T-Mobile said there must be a balance between licensed and unlicensed spectrum. “The reason the Commission has spectrum auctions is there isn’t enough spectrum,” she said: “The Commission can’t be picking the winners and losers.” Ham noted that the FCC holds dozens of auctions that get almost no publicity. “A lot of small businesses are getting spectrum for a lot of different things,” she said. ----

The Brand X decision was the single biggest setback to broadband deployment in the last 10 years, Media Access Project Pres. Andrew Schwartzman said. By waiting 8 years to weigh in on Brand X, the FCC created market uncertainty that kept millions of investment dollars sidelined, he said: “I think there is a great relationship between that and the fact that the U.S. lags in broadband development.” Brand X, which classified cable modem service as an “information service” was legally “highly suspect,” said Google Washington Telecom & Media Counsel Richard Whitt.