FCC Won't Sign Off On Google's Vision Wholesale open access just isn't happening... 11:19AM Wednesday Jul 25 2007 by Karl tags: fcc competition business As we just got done predicting, it appears the FCC will be rejecting Google's open access demands for the upcoming 700Mhz spectrum auction. Google had promised to invest $4.6 billion at auction if the FCC forced auction winners to offer wholesale access to broadband competitors. Google has been arguing the spectrum is the last great chance for broadband competition in a duopoly market. "But a key point Martin, a Republican, would not support, and that Google insists on, is a rule forcing whoever wins the spectrum at the auction to wholesale parts of it to other companies who want to resell it." Shocking. While Google may be new to lobbying, they knew this current FCC would never sign off on their plan fully, which made the promise of billions in investment largely empty (though helpful politically). Why doesn't Google just jump in under current rules? The system is designed so they'll lose to incumbents, they argue in a new blog post. While Google embraces the kinds of openness and innovation that are the hallmark of the Internet, the incumbents apparently prefer their existing business models. -Google's Richard Whitt "Our position is simple enough. FCC Chairman Kevin Martin and the other commissioners have argued persuasively that we need a real third pipe broadband competitor in this country. They also believe that the upcoming 700 MHz auction is the best way to get there. All we are saying is that, based on what we know, new broadband competition will emerge from the upcoming auction only if the FCC's rules allow it to happen. For Google, and other potential new entrants, the prevailing imbalance can be corrected most effectively by introducing license conditions based on open platforms." However, the closest to "open platforms" the FCC is willing to get is to force auction winners to offer unlocked devices on any network using the new spectrum. The chairman of the House Subcommittee on Telecommunications, Rep. Edward Markey, is urging the FCC to go further if they want true broadband competition.
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