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AT&T’s endorsement of Kevin Martin’s proposal for the upcoming 700-MHz spectrum auction is a shot in the arm for Martin, who has come under a torrent of criticism from Google, Yahoo, and others. And in the past few days, a number of news reports have indicated AT&T was contemplating suing the FCC over Martin’s plan.

AT&T has endorsed Federal Communications Commission Chairman Kevin Martin’s proposed rules for the upcoming 700-megahertz spectrum auctions, which would allow unprecedented choice for wireless Relevant Products/Services consumers.

“We think Chairman Martin’s plan is a creative compromise that balances the interests of companies and consumers,” said Jim Cicconi, AT&T’s senior executive vice president of public policy.

Martin’s proposed rules, which would apply to all national licenses except one reserved for public safety, would require bidders to let consumers use any device they desire, loaded with any software Relevant Products/Services they wish. That is counter to the U.S. wireless industry habit of limiting consumers to devices and applications they sell.

AT&T’s endorsement is a shot in the arm for Martin, who has come under a torrent of criticism from Google, Yahoo and others. They’ve been pushing for FCC rules that would go much further in giving consumers choice of devices, software and more.

In the past few days, a number of news reports have indicated AT&T was contemplating suing the FCC over Martin’s plan.

Cicconi says that is patently wrong. “That was never the case. Nor did we ever say that.”

The upcoming auctions are considered a watershed event for the U.S. wireless industry. The 700-MHz spectrum, which can penetrate walls and other obstacles, is ideal for mobile broadband, one of the fastest-growing — and most lucrative — parts of the business.

Google has pushed the FCC to go further with consumer-friendly rules. Under its plan, use of any network built using new licenses would have to be sold to all comers at wholesale rates, with no restriction on devices or applications. Google has hinted it might bid for the spectrum if its proposal is accepted.

Cicconi described Martin’s plan as a “put-up or shut-up” to Google and other companies that endorse a wholesale approach. “It’s a big block (of spectrum), and it would allow them to offer a national service if they are serious about doing that,” he added.

Cicconi noted that if the bids aren’t rich enough (the FCC has set a “reserve” price), the agency will pull back the spectrum and re-auction it without the consumer choice rules.

The upshot: If bidders sit it out, or don’t ante up, the FCC could wind up dropping the open-device requirement. Cicconi declined to comment, saying only that AT&T would decide its bidding strategy once the FCC’s rules are finalized.
 

© 2007 USA TODAY. All rights reserved.
© 2007 NewsFactor Network. All rights reserved.