March 23rd, 2008Verizon and AT&T take U.S. 700MHz Spectrum
Two big incumbents have emerged as the big winners in the FCC’s auction of the 700Mhz band in the U.S. Google was not a factor in the auction. Sam Churchill at DailyWireless has a good survey of thoughts on what these results might mean for American consumers, or for the future of WiMax. It does not mean great things in their opinion. Link: 700MHz: Politics Wins
I don’t blame Verizon or AT&T. They’re just trying to make a buck and need to protect their cash cow.
Congress and the FCC dropped the ball by not creating a more competitive environment. They could have created a USF funding model that encouraged competition. They could have avoided making the Integrated Wireless Network a $10 billion narrow-band boondoggle [that will probably never get built]. They could have encouraged “4G” technology, more competition, and lowered consumer costs with more effective use of the spectrum.
By contrast, Industry Canada’s approach of setting aside spectrum only for new entrants, seems to be looking smarter all the time?
For my part, I’m still a little confused by the whole process. How is it governments, by raking tens of billions off the balance sheets of the industry and then pocketing it, are exactly helping the cause of delivering affordable and accessible telcom services to their respective populations.
