IP Democracy: FCC Oversight Hearing Focused on 700 MHz Auction

Once in a while a telecom policy fight erupts that you just know promises to deliver the wonk’s idea of fireworks. The latest such power struggle is over the upcoming auction of 700 MHz spectrum, a major piece of wireless real estate that will be made vacant by the impending transition to digital TV and that could serve as the conduit for a third broadband pipe into the home.

Here’s the core fight so far, in a nutshell: FCC Chairman Kevin Martin has floated draft rules for how this auction will be conducted and in so doing has reserved some spectrum for “open access,” which will allow different kinds of handsets to work with the spectrum. Google and some public interest groups say the “open” part of the proposal doesn’t go far enough. They’d like to see the spectrum opened up to all competing content and application services, and they’d like to see the winning bidders offer some spectrum for wholesale buyers, among other things. Google is willing to go so far as to put up $4.6 billion of its money to buy spectrum if the FCC would just agree to more “open” ground rules.

The Congressional panel in charge of telecom matters, the Energy and Commerce Committee’s Subcommittee on Telecommunications and the Internet, has already held one hearing on the issue. Today that same body held its customary FCC oversight hearing and the top topic was, of course, the 700 MHz auctions. (Video of the hearing will be available here.)

Subcommittee chair Rep. Ed Markey (D-MA) urged the assembled commissioners to do more in terms of opening up the spectrum. In particular, the idea of allow bidders to sell capacity at wholesale to third party service and content providers got a nod from several lawmakers.

Rep. Mike Doyle (D-PA) said that the auction is the most important policy issue in telecom and is quoted as saying to the commissioners, somewhat dramatically, that “this auction is a test for each of you that history will long remember.”

Republicans, including ranking minority member Rep. Fred Upton (R-MI) and Rep. Joe Barton, ranking minority member of the full committee, mostly don’t agree with this idea. But that’s not surprising — the Republicans have mostly agreed with the positions of the incumbent telcos over the past four or five Congresses on matters related to competition and policy.

Given this level of heat and bi-partisan division, not to mention the growing power of Google in the debate, no one should be surprised that this issue is shaping up to be a fun (to watch) telecom policy slugfest. Stay tuned for more.

Posted by Cynthia Brumfield on July 24, 2007 6:04 PM to IP Democracy