Newsroom: Internet

For Immediate Release

Public Interest Groups Tell FCC to Create Wireless Broadband Competition

WASHINGTON, DC -- A coalition of public interest groups told the Federal Communications Commission (FCC) today it should ensure the auction of the valuable 700 MHz spectrum will facilitate high-speed Internet service that offers meaningful competition to broadband services offered by telephone and cable companies.

The groups said the Commission should structure the auction of the spectrum, and the service offered over it, so that wireless broadband will be operated in a non-discriminatory manner, under an open access structure following auction rules that will allow new market entrants to successfully compete against incumbents for spectrum licenses.

"The auction of licenses in the 700 MHz band is a unique and critical opportunity to bring affordable broadband to American consumers, open an avenue for competitive broadband providers, and ensure that consumers have access to at least one broadband network where discrimination is prohibited," the groups said. "It is without question the best opportunity to open a legitimate, non discriminatory 'third pipe.' "

Submitting the recommendations were Consumers Union, Consumer Federation of America, Free Press, Media Access Project, New America Foundation and Public Knowledge.

The groups noted that past auctions have resulted in winning bids from dominant Bell and cable companies that not only oppose non-discrimination rules for broadband generally but are also unlikely to offer consumers wireless broadband services that compete with their wireline broadband offerings.

The Coalition urged the Commission to:

• Require broadband services operating in the 700 MHz band to protect consumers' rights to use any equipment, content, application or service on a non-discriminatory basis without interference from the network provider;
• Designate at least three spectrum blocks, totaling 30 MHz or one-half of the 60 MHz to be licensed in the upcoming auction as "open access" spectrum to create opportunities for a "third pipe" competitors that can challenge the market dominance of cable modem and DSL services with an affordable and comparable broadband service;
• Offer the new spectrum at the wholesale level, and either prohibit wireline and large wireless incumbents from bidding, or require them to bid through structurally separate affiliates;
• Prevent winners of the auction from warehousing spectrum that forecloses opportunities for competitors and denies consumers choice;
• Ensure a sufficient number of small licenses for the benefit of smaller rural carriers, while ensuring that new entrants are able to bid under rules that allow them to construct a national footprint allowing them to provide a robust national competitive service.

The spectrum to be auctioned is currently used by broadcasters and will be returned to the government after the digital television transition is final. FCC is expected to release rules for the auction in the coming months.

Read the comments:

Network Neutrality

Open Access

Fair Auction Rules that Promote Competition

Contact: Jeannine Kenney, Consumers Union, (202) 462-6262, ext. 1118

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