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FCC Spinning Policies Made Out of Thin Air

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The games have truly started at the Federal Communications Commission (FCC), where the agency is gearing up for what may be the most significant auction of publicly owned spectrum.

How is this game scored? It appears as if one wins by pushing proposals that appear to be favoring competition, when in fact, they don’t.

It’s evident from today’s Wall Street Journal and USA Today that FCC Chairman Kevin Martin is a very good player. The spin on both of those stories was impeccable. Martin and his staff made it appear as if the Commission was about to embark on a new, glorious age for consumers. As the headline in USA Today put it, “New rules could rock wireless world.”

Martin and his staff are pushing the notion that for the next spectrum auction, and only for that slice of the airwaves to be auctioned next year, consumers will have the opportunity to use any mobile device or application.

For the record, that’s not a bad thing. As the hubbub over the iPhone has demonstrated, consumers don’t have a whole lot of choice in which phones they can use on which network, and which services they can access. Apple was forced to deal with either AT&T or Verizon. And then it had to go with AT&T, which has the inferior network. Even then, there are severe restrictions on what consumers can do with an iPhone, just as there are severe restrictions on what consumers can do with any cell phone.

The new glorious age of cellphone liberation wouldn’t apply to the millions of phones operating now on existing networks. It’s not clear how a service offered by Verizon in the newly auctioned spectrum would work if it could also connect to existing spectrum.

What the news reports about a draft FCC order circulating at the agency indicate, however, is that the Commission is on the verge of passing up the chance to create a semblance of real competition in the wireless area. That’s because the definition of “open access” that Martin is using is far different from what everyone else is using.

The public-interest community and the high-tech companies see “open access” as requiring the winners of the spectrum auction to offer a slice of the space on a wholesale basis with no rules on what types of services or equipment could be offered. That’s a far cry even from loosened rules on a new slice of spectrum owned by existing companies.

In theory, a true “open access” regime could go some way to creating some competition in the wireless world in which there are four or five major companies which each have similar ways of doing business. A true open access regime could have given Apple the chance to deploy the iPhone on another network. A true open access regime could allow Google, or satellite companies, or any sort smaller entrepreneur with a great idea the chance to offer something newer and different from what the existing carriers provide.

If Martin’s plan holds up, they may never get the chance. The good news is that the game isn’t over, and it’s possible that other commissioners will see the benefits of true competition. We can only hope.


3 Comments

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We can only hope.

Not a prayer...

Consumers being mostly average working stiffs have no voice in this government. Free, open non monopolized markets are not what the folks who run this government are about. It looks to as if the deciders are about to go on yet another night ride. to terrorize and rob consumers.

My favorite quote from Martin-

The FCC chairman said he has grown increasingly concerned that the current practices "hamper innovations" dreamed up by outside developers. One example: mobile devices that also can use Wi-Fi, such as a home network or airport "hot spot," for Internet access. "Internationally, Wi-Fi handsets have been available for some time," Martin noted. "But they are just beginning to roll out here."

Some handset makers actually strip out Wi-Fi features at the request of U.S.-based carriers loath to allow any feature that could let users sidestep their fee-based services and applications. "I am concerned that we are seeing some innovations being rolled out more slowly here than we are in other parts of the world," Martin said.

Oh really, Kevin?  When did you notice that?  Maybe when we dropped from being the creators of the internet to having our butts handed to us in the access and speed survey.

What a tool.....

 

Alphonse ( Al ) Kada
Iranians are fighting the Americans in Iraq so they don't have to fight them on the streets of Tehran

It's not only that we're mostly average working stiffs, we're stuck with Brodsky's essay (at least I think I did), but I didn't understand a lot of what it meant.  I have a cell--I use it when I remember to carry it, but I don't know how it works.   I have a vague idea of what a spectrum is, from high school physics 50 years ago, and the odd read since.

So those of us who aren't electronic wizards are stuck with what the elites, including the electronic elites tell us we need.  I think it miraculous that I have to push a button to turn my computer on but not to turn it off...and I haven't a clue how that works.  I'm not complaining, actually.  I'm grateful to those who gave me this and other black boxes and made them simple enough for me to play with. 

Now I need a government I can trust to regulate the black box industries in order that I can get the most enjoyment out of them possible.  I won't get that from this gang of expletive deleteds.

aMike

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