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Startup appeals FCC auction rules
By JOHN DUNBAR, Associated Press Writer Mon Sep 24, 10:32 PM ET
WASHINGTON - A group of investors that is vying to build a national network for public safety communications is asking the Federal Communications Commission to reconsider rules it approved governing an upcoming spectrum auction.
Frontline Wireless LLC, a technology industry-backed company headed by former federal officials, wants the agency to change the rules to make it less likely that incumbent cell phone companies will win the rights to the spectrum.
The appeal, known as a "petition for reconsideration," was filed with the FCC Monday night.
On July 31, the FCC approved rules for the auction, set to take place Jan. 16, 2008. The spectrum is being made available thanks to the transition to digital broadcasting by television station owners. It is expected to raise as much as $15 billion.
The FCC approved most of a Frontline-authored plan that would combine 10 megahertz of spectrum dedicated to public safety with another 10 megahertz of commercial spectrum to create a national network shared by emergency responders and the winning bidder.
Public safety would get first priority for traffic on the network. Any room that remains would be used for commercial services.
The minimum bid on the public safety spectrum block is $1.33 billion. While the FCC adopted the major elements of Frontline's plan, it did not agree on one key issue. Frontline wanted the winner of the commercial license to be required to offer other providers access to the network at wholesale prices. Such a requirement would discourage the dominant wireless carriers from bidding.
In its appeal, Frontline is asking that the agency allow small businesses that want to bid on the spectrum to employ the wholesale model on a new network.
