FCC 700 MHz Auction Crosses Overall Reserve Price Threshold
30.11.1999 / 802.11b Networking News
The future of competition for broadband and cellular wireless hits one milestone, close to other: The 700 MHz auction currently underway will distribute thousands of licenses to entities across the country for effective, widespread distribution of broadband, voice, and other services. The C Block is the most hotly contested block, representing a set of licenses that covers the entire U.S. The reserve bid for the block was $4.6b; the current high bid is $4.3b, while the next qualifying bid must be at least $4.75b. The auction as a whole had to gross over $10.3b, and that mark was also hit around noon with $10.8b bid so far. That means that it's extremely likely now that the auction will conclude successfully, and that the C Block will be won. Google at one committed to the reserve price, so if they're bidding--bidders are anonymous in this auction--they will make at least one bid to cross that mark. The mixed public safety/private use D Block is still up for grabs. The reserve price is $1.4b, but the bidding has hit only over $500m. If the bids don't reach the reserve price, the block will likely be reformulated. Harold Feld alleges monkey business in how the rules for the band were set for a putative winning bidder. In short, he writes that a one-time potential bidder moved into an advisory role to the body that will control the block for public-safety interests. He says that would allow them to set unreasonable terms for a winning bid, and that the FCC refused to set rules that would prevent unreasonable terms from being proposed. Thus, Frontline Wireless, the firm most likely to operate the D Block, shut down, as they couldn't come up with a strategy that was financially sound. (The auction rules state that if you default, you forfeit the difference between your bid and the ultimate winning bid; Frontline could have easily been out hundreds of millions of dollars in that scenario.)...Copyright ©2008 Glenn Fleishman. All rights reserved. Please notify us if you find this content anywhere but at wifinetnews.com or wimaxnetnews.com. Reproduction of full articles from RSS feeds is prohibited without permission.]]>
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