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FCC Spectrum Auction Rules: The “Open Access” Commissioners

By Rafat Ali - Tue 31 Jul 2007 09:17 PM PST

Below are excerpts from the respective statements from FCC Commissioners on the spectrum auction rules, which we covered earlier today here and here...I have extracted the relevant content/devices statements from them (fill PDFs from each are here on FCC homepage):

Chairman Kevin Martin:
I am committed to ensuring that the fruits of wireless innovation swiftly pass into the hand of consumers. Currently, American consumers are too often asked to throw away their old phones and buy new ones if they want to switch cell phone carriers. And when they buy that new phone, it is the wireless provider, not the consumer, who chooses what applications the consumer will be allowed to use on that new handset...A network that is more open to devices and applications can help foster innovation on the edges of the network...We will ensure these open platform rules are implemented, through significant enforcement mechanisms that place the burden on the licensee to demonstrate their compliance and that their policies are fair and reasonable.

Commissioner Michael Copps, approving in part, concurring in part:
Whether we’re talking about media ownership, the future of the Internet, video distribution, or ownership of wireless and wireline assets, I believe that reducing the power of gatekeepers and increasing the intensity of competition is the right policy call. They will permit entrepreneurs to innovate without asking somebody else for permission—just as the developers of the fax machine, dial-up modem, and Wi-Fi router did.
[But], my deepening concern this afternoon is that this auction might not end up being the stimulus to a third pipe, the right to attach devices, to run applications and to encourage the innovation and entrepreneurship that we all hope for because of some add-on provisions. The item now imposes reserve prices on each of the individual spectrum blocks, something without precedent in previous auctions and something, it seems to me, rather at odds with letting the market pick the auction block winners.

Commissioner Jonathan Adelstein, approving in part, concurring in part:
Though we have hope and expectations for this auction, we must recognize that today’s decision alone won’t solve our broadband challenges, nor will it provide any instant remedies. Even if all goes well, today’s decision won’t afford opportunities until 2010 at the earliest...We have also lost an opportunity to provide crucial bidding credits to designated entities that wholesale fully built-out network services.

Commissioner Deborah Taylor Tate:
I am hesitant to use the term “open access,” since it means different things to different people. Here, I interpret our decision to pertain to “unlocking and unblocking” legal devices and applications as used by the consumer, while also recognizing and specifically allowing for protection of the network, and nothing more...I hope today’s item will not result in unexpected negative consequences, such as consumers seeing less of such innovations or losing access to the many packages of services they enjoy today. If this effort is successful, consumers will enjoy the fruits of one additional type of business model in the years to come. In the end, it is the consumer and the marketplace who will be the judge.
My hope is that we have created an incubator for the next killer app, the next platform or the next cool device. In fact, the entrepreneur-inventor who will make all this happen is probably just in the 8th grade.

Commissioner Robert McDowell, dissenting in part:
If this new regulatory regime is all in the name of fostering device and application portability, I want consumers to know that the seeds of these offerings are already germinating. The wireless market is starting to deliver device and application portability because it has been allowed to function freely and has been responsive to consumer demand. For example, over the past couple of years, wireless carriers have offered at least ten different phones that are compatible with any Wi-Fi network...Further, these business developments are by no means the end of the innovation that is rising above the horizon, but the beginning of a brighter revolution that is already dissolving walled gardens across all platforms. Just ask America Online about the long-term viability of a walled garden strategy. So, I’m not sure it makes sense for the majority to take credit today for spurring device and application portability when it’s sprouting on its own.

Posted in: Gadgets, Legal, Regulatory



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