Newsroom: Phone & Cell Phones

FOR IMMEDIATE RELEASE

Washington, D.C. (July 30, 2007) – Consumer groups today expressed dismay at the Federal Communications Commission’s new auction rules, calling them a squandered opportunity to ensure lower prices, better service, and greater innovation for users of wireless services.

The Federal Communications Commission (FCC) today announced rules for the auction of wireless spectrum in the 700 MHz band (made available by the transition to digital television). This represents the largest spectrum auction in more than a decade; the spectrum in play is extraordinarily valuable because it is better able to pass through walls and other obstacles than present wireless phone and data services.

"The phone monopolies got most of what they wanted, and consumers will pay the price. Now customers are likely to see the same overpriced packages, lack of innovation and undue fees with aggravating long-term lock-ins," said Chris Murray, Senior Counsel for Consumers Union.

"While we are heartened that the agency chose to require a limited degree of openness for part of this spectrum, it is too little, too late," noted Murray.

"For 90 years the central principle of telecommunications policy in the United States was a promise of access to the communications network on rates, terms and conditions that are just, reasonable and non-discriminatory. That principle carried the U.S. to world leadership in the Information age, but since the FCC abandoned it in 2000, we have plummeted to 16th in broadband. This auction is another step away from the public interest in communications," stated Mark Cooper, Research Director for the Consumer Federation of America.

Cooper continued, "The game of trying to make Internet companies bid on spectrum in order to get reasonable, nondiscriminatory carriage of their bits is like requiring GM to bid on road construction projects to ensure its cars will be allowed on the highway.  It is a sad commentary on how badly policy makers in Washington have lost sight of the fundamental principles of open communications networks that serve the public interest."

Please call Chris Murray at (202) 238-9253 or email murrch@consumer.org with any questions.