Dem. President. Candidate Edwards Enters Spectrum Debate Fray

WASHINGTON -(Dow Jones)- Democratic Presidential candidate John Edwards has waded into the debate over radio spectrum policy, urging the Federal Communications Commission to structure the rules for an upcoming auction so that smaller companies can participate.

In a letter sent to FCC Chairman Kevin Martin Wednesday, the former North Carolina senator said that as much as half the 60 megahertz of lucrative spectrum that is to be auctioned off be set aside for wholesale operations which could lease use of the airwaves to smaller commercial wireless broadband operators.

"By setting bid and service rules that unleash the potential of smaller new entrants, you can transform information opportunity for people across America," said Edwards in the letter.

Edwards outlined two other proposals in his letter: that the successful bidder for the spectrum be obliged to allow any device to be attached to the network they build; and for the bidding process to be anonymous to avoid "collusion and retaliatory bids."

The letter concludes with Edwards urging Martin to "seize this chance to transform the Internet and the future."

Edward's correspondence marks the first time one of the major presidential candidates in the 2008 presidential contest has become involved in the debate over how the auction should proceed.

The FCC is currently finalizing the rules for the auction and has stated that it hopes to publish them by late June or early July.

One of the potential bidders to the auction, Frontline Wireless, has released similar proposals to those advocated by Edwards. It is calling for 10 megahertz of the 60 total to be designated for use by wholesalers.

That group has run into considerable opposition from the incumbent telecommunications players who oppose anything but an entirely open auction where the highest bidder would prevail.

It is unclear at this stage whether Frontline will be successful in its more modest proposal for wholesale use of spectrum.

The auction of the spectrum must begin by the end of January 2008 with the proceeds from it deposited to the U.S. Treasury by June 2008.

-By Corey Boles, Dow Jones Newswires; 202-862-6637; corey.boles@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 1st June 2007