Is FCC Chairman Kevin Martin going over to the dark side? An article from RCR Wireless News seems to claim as much. Various inside sources now say that Martin has given in to Verizon's relentless lobbying and is pushing for prompt revisions to the 700 MHz open-access rules.
Verizon recently sued the FCC over those rules, claiming they imposed unfair conditions on a third of the 700 MHz spectrum, while other expected bidders, like Frontline Wireless, ran to defend the government and open access.
As RCR News points out, part of what complicates this issue is that Verizon Wireless' participation in the auction is seen as integral to the government being able to generate the anticipated $10 to $15 billion in bids it wants.
According to various sources, after failing late last week to make changes to the 700 MHz open-access conditions, Martin is now attempting to implement a "declaratory ruling" to modify the auction’s open-access guidelines in a way that addresses Verizon's concerns. What that means is anyone's guess at the moment, but a lot of industry insiders are understandably worried.
If true, this certainly presents Martin with a formidable situation. Google has said before it will bid in the 700 MHz auction because the FCC understood "…the spirit of what [Google] was asking for" in its recent open letter. Now if those open access conditions are reworked or watered down to appease Verizon, the goverment may very well see the search giant walk away from the auction altogether. That's a huge loss, considering Google's deep pockets and the influence it exerts over the rest of the industry. Let's hope Martin can come up with something.
The FCC did not not immediately respond to our request for comment.
See Also:
- Frontline Rallies FCC to Institute 'Competitive Screens' for 700 ...
- Sprint: 700 MHz Spectrum Not All That Important for WiMax
- Apple's 700 MHz Play: Simply a Part of a Google-Led Consortium?
- Frontline Wireless: The 700 MHz Dark Horse?
- Frontline to FCC: 700 MHz Reserve Prices are 'Arbitrary ...
- Verizon Dumps on Open Access, Sues FCC
- Eric Schmidt: Google Likely to Bid in 700 MHz Spectrum Auction
- Spin City: Telco Giants Sound Off On 700MHz Auction
