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August 01, 2007

The Day After: Reactions to FCC Auction Rules

Not surprisingly, there's been a mixed reaction to yesterday's Federal Communications Commission (FCC) decision on the 700 MHz auction rules. For those of you who managed, somehow, to escape the news, the Commission voted 4-1 in favor of requiring part of the spectrum be "more open to devices and applications." The FCC did not, however, call for open services and wholesale access to the network like Google and other supporters had hoped.

This post by GigaOm's Paul Kaputska features a summary of how some key players feel about the FCC vote. Kaputska references comments by Rick Whitt of Google, former FCC chairman Reed Hundt of Frontline Wireless, Rep. Ed Markey (D-MA), and AT&T's executive Jim Cicconi.

After the jump are a few more reactions from around the Web:

  • FCC Commissioner Robert McDowell, who dissented on the vote:

"While we can agree on the destination -- consumers should be able to enjoy device and application portability if they want -- we may respectfully disagree on the path to get there...I am disappointed that the majority [of FCC commissioners] didn't try to work with industry to forge a consensus solution rather than rushing to regulate without thinking through possible unintended consequences." (his full statement can be downloaded here)

  • Sen. Daniel Inouye (D-HI), Chairman of the Committee on Commerce, Science and Transportation:

"Without question, the decision is not perfect, and admittedly, represents a number of hard-fought compromises by the members of the FCC. However, on balance, I am hopeful that the agreement reached will benefit consumers and serve the public interest."

  • Steve Largent, president and CEO of wireless industry association CTIA:

"The FCC’s considerable deliberation over the 700 MHz auction rules has left us pleased in a number of respects and still concerned in others. Specifically, we believe the Commission has taken the appropriate approach by recognizing the importance of not restricting the number of auction entrants, nor requiring them to fulfill wholesale licensing requirements or requiring geographic build-out on all the licenses...At the same time, we are disappointed that a significant portion of this valuable spectrum will be encumbered with mandates that could significantly reduce the number of interested bidders."

  • Gigi Sohn, President of consumer advocacy group Public Knowledge, writing in The Huffington Post:

"Faced with the chance to change the face of broadband service in America, and perhaps raise our poor position in comparison to other countries, the FCC chose to go only half way. It voted to require just two of the four open access conditions; open devices and open applications. These are pro-consumer conditions for sure, but do not accomplish the one goal both the FCC and Congress set for the auction - creation of a third broadband service provider that can compete with cable and telephone companies which control 96% of residential broadband lines in the U.S."

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