[WISPA] 700 auction
Big surprise here: AT&T, Verizon Oppose Google Over Airwaves http://www.webpronews.com/topnews/2007/06/11/at-t-verizon-oppose-google-over-airwaves -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] 700 Auction
"In one crucial change, the FCC doubled the length of time winning bidders must hold their spectrum before selling it, pushing the exit horizon to 10 years, which is longer than the venture capitalists who finance small bidders like to hold their investments." It's about danged time that the FCC made rules changes that would run off the speculators! The spectrum should only be open to those that are GOING to use it, not try to just make a quick buck by turning it over. Marlon (509) 982-2181 (408) 907-6910 (Vonage)Consulting services 42846865 (icq)WISP Operator since 1999! [EMAIL PROTECTED] www.odessaoffice.com/wireless www.odessaoffice.com/marlon/cam - Original Message - From: <[EMAIL PROTECTED]> To: Sent: Thursday, May 24, 2007 4:35 AM Subject: [WISPA] 700 Auction Small telecom bidders ask court to void FCC spectrum auction By Peg Brickley Last Update: 4:14 PM ET May 23, 2007 http://www.marketwatch.com/news/story/small-telecom-bidders-ask-court/story.aspx?guid=%7B6F2B0C5B-209A-4DC3-87A3-CAB7A02B96B8%7D http://tinyurl.com/2kdvam Lawyers for small telecommunications bidders Wednesday asked a federal appeals court in Philadelphia to throw out a $13.75 billion auction of wireless spectrum on the grounds that last-minute changes made it unfair. Upsetting the August 2006 auction could "turn the industry upside down," said William Lake, attorney for T-Mobile USA, a subsidiary of German telecommunications giant Deutsche Telekom AG , and for a trade association of wireless carriers, Washington, D.C.-based CTIA-The Wireless Association. T-Mobile was the largest winner at the big auction under attack, claiming $4.2 billion worth of the spectrum in a sale of public airwaves long reserved for government and official uses. The Third Circuit Court of Appeals must decide whether to overturn the auction, and what to do about Federal Communications Commission rule changes that kicked in just before the big sale. The decision could also have an impact on the next big FCC auction, expected by January 2008, of 700 megahertz band spectrum that is expected to fetch up to $15 billion. The FCC defended its auction rule changes as the fair product of a fair process. If the appeals court voids the rules on technical grounds, the FCC will likely enact substantially the same rules again, said Joseph Palmore, deputy general counsel for the FCC. Dennis Corbett, lawyer for Council Tree Communications Inc. and two other auction challengers, said the FCC rule changes, almost on the eve of the auction, put a damper on his clients' chances in the bidding. In one crucial change, the FCC doubled the length of time winning bidders must hold their spectrum before selling it, pushing the exit horizon to 10 years, which is longer than the venture capitalists who finance small bidders like to hold their investments. Corbett said the changes frightened off private equity investors. "What the agency did here, instead of being proactive and helping small businesses, it dropped those pianos on their heads," Corbett said. With no one to stake them to a seat at the auction table, small bidders can't compete with telecommunications giants hungry for spectrum, Corbett said. "When you go out to find capital, which is the hardest thing for a small business, the investors need to know the rules of the road," Corbett said. He said the FCC acted with illegal haste last year, and that the auction should be unwound. Judges on the three-member panel that will decide whether last year's auction results stand or fall expressed concern about creating a major disturbance in the telecommunications industry. "Nullifying the auction would be very disruptive," U.S. Court of Appeals Judge Michael A. Chagares said. However, Chagares suggested, vacating the FCC rule changes that small bidders blamed for unfairness, a fix for future auctions, might be a less drastic remedy. Corbett, lawyer for the small bidders, said the court should get rid of the new FCC rules in time for the next spectrum auction even if the court decides there's nothing to be done about last year's auction. "The 700 megahertz is a huge auction of beachfront spectrum," he said. "These rules should not infect yet another auction. They're bad rules. Get rid of them." FCC attorney Palmore, however, warned that throwing out the rules would make big trouble. "It would throw into question and create incredible uncertainty for future auctions," he said. The appeals court did not say when it will issue a decision. The court could uphold the rules and last year's auction, vacate either the rules or the auction, or do nothing, bowing to an FCC argument the appeal didn't come in time. In addition to Council Tree Communications, Bethel Native Corp. and the Minority Media and Telecommunications Council are
[WISPA] 700 Auction
Small telecom bidders ask court to void FCC spectrum auction By Peg Brickley Last Update: 4:14 PM ET May 23, 2007 http://www.marketwatch.com/news/story/small-telecom-bidders-ask-court/story.aspx?guid=%7B6F2B0C5B-209A-4DC3-87A3-CAB7A02B96B8%7D http://tinyurl.com/2kdvam Lawyers for small telecommunications bidders Wednesday asked a federal appeals court in Philadelphia to throw out a $13.75 billion auction of wireless spectrum on the grounds that last-minute changes made it unfair. Upsetting the August 2006 auction could "turn the industry upside down," said William Lake, attorney for T-Mobile USA, a subsidiary of German telecommunications giant Deutsche Telekom AG , and for a trade association of wireless carriers, Washington, D.C.-based CTIA-The Wireless Association. T-Mobile was the largest winner at the big auction under attack, claiming $4.2 billion worth of the spectrum in a sale of public airwaves long reserved for government and official uses. The Third Circuit Court of Appeals must decide whether to overturn the auction, and what to do about Federal Communications Commission rule changes that kicked in just before the big sale. The decision could also have an impact on the next big FCC auction, expected by January 2008, of 700 megahertz band spectrum that is expected to fetch up to $15 billion. The FCC defended its auction rule changes as the fair product of a fair process. If the appeals court voids the rules on technical grounds, the FCC will likely enact substantially the same rules again, said Joseph Palmore, deputy general counsel for the FCC. Dennis Corbett, lawyer for Council Tree Communications Inc. and two other auction challengers, said the FCC rule changes, almost on the eve of the auction, put a damper on his clients' chances in the bidding. In one crucial change, the FCC doubled the length of time winning bidders must hold their spectrum before selling it, pushing the exit horizon to 10 years, which is longer than the venture capitalists who finance small bidders like to hold their investments. Corbett said the changes frightened off private equity investors. "What the agency did here, instead of being proactive and helping small businesses, it dropped those pianos on their heads," Corbett said. With no one to stake them to a seat at the auction table, small bidders can't compete with telecommunications giants hungry for spectrum, Corbett said. "When you go out to find capital, which is the hardest thing for a small business, the investors need to know the rules of the road," Corbett said. He said the FCC acted with illegal haste last year, and that the auction should be unwound. Judges on the three-member panel that will decide whether last year's auction results stand or fall expressed concern about creating a major disturbance in the telecommunications industry. "Nullifying the auction would be very disruptive," U.S. Court of Appeals Judge Michael A. Chagares said. However, Chagares suggested, vacating the FCC rule changes that small bidders blamed for unfairness, a fix for future auctions, might be a less drastic remedy. Corbett, lawyer for the small bidders, said the court should get rid of the new FCC rules in time for the next spectrum auction even if the court decides there's nothing to be done about last year's auction. "The 700 megahertz is a huge auction of beachfront spectrum," he said. "These rules should not infect yet another auction. They're bad rules. Get rid of them." FCC attorney Palmore, however, warned that throwing out the rules would make big trouble. "It would throw into question and create incredible uncertainty for future auctions," he said. The appeals court did not say when it will issue a decision. The court could uphold the rules and last year's auction, vacate either the rules or the auction, or do nothing, bowing to an FCC argument the appeal didn't come in time. In addition to Council Tree Communications, Bethel Native Corp. and the Minority Media and Telecommunications Council are challenging the FCC. As "designated entities" under rules designed to make sure deep-pocketed telecommunications enterprises don't dominate auctions, they are entitled to bidding credits to compensate for their financial disadvantages. Such entities often sell off acquired spectrum rights to help finance their telecommunications ventures. -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
