FCC Considered Extending Conditions On Spectrum - Martin

WASHINGTON (Dow Jones)--The Federal Communications Commission considered applying its "open-access" conditions to more of the spectrum that it is selling off in next year's auction, but didn't due to concerns from smaller telecommunications companies, the agency's chairman Kevin Martin said Wednesday.

Testifying before the House Small Business Panel, Martin said that applying the open-access conditions to a further 30 megahertz of spectrum that is being sold off to the commercial wireless industry was considered by the commission, but not pursued following fears raised by smaller players in the industry.

"We could have applied the open-access requirements everywhere, but the smaller carriers didn't want that," said Martin.

The "open-access" conditions state that for a swath of 22 megahertz of spectrum, the winners of the airwaves must allow any handset and any software be used over the wireless network they subsequently build.

Martin's comments are the first time an FCC official has said that the commission considered applying these conditions more widely.

The chairman was facing questioning from lawmakers as to what the impact of the auction would be on smaller telecommunications companies.

Unlike some of Martin's appearances before the House Energy & Commerce Committee this year, the questioning he faced at Wednesday's hearing was largely sympathetic.

He said the open-access conditions would benefit smaller wireless companies that may currently find it difficult to bring handsets and software to the wireless market given the control exerted by the large wireless companies.

The 30 megahertz of spectrum Martin was referring to has been broken up into several hundred smaller and often local licenses.

It is believed that much of this section of airwaves will be bought up by smaller wireless companies, as well as large companies seeking to fill holes in their geographic footprints.

Speaking to reporters after the hearing, Martin said he had no intention of revisiting the rules governing next year's auction as he has been urged to by Verizon Wireless.

The company is fighting a two-pronged strategy against the rules. It has filed a suit in court challenging their legality but has also been engaged in heavy lobbying at the FCC to get certain aspects of the rules modified.

Martin's comment would appear to suggest that in this attempt at least, the company has been unsuccessful.

In total, 62 megahertz of spectrum is being sold as a result of a move by television broadcasters to a digital signal from their current analog one, which requires significantly less airwaves.

The remaining 10 megahertz will be sold on a national basis to a single bidder who will then have to work with the public safety community to build a wireless network for the use by the country's first responders.

The sale is scheduled to begin in January next year, with the winners slated to take control of the spectrum they acquire in February 2009, once TV broadcasters stop airing an analog signal.

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

(END) Dow Jones Newswires

Posted to the site on 10th October 2007