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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