So What The Heck Is M2Z? And Why Do I Support It?

So recently, with all the spectrum stuff going on, I hear a lot of people asking about something called “M2Z,” usually like this: “So, what the heck is M2Z? And why should I care?”

Two very good questions. Briefly, M2Z is yet-another-plan to solve our national broadband woes through exclusive licensing. Specifically, it is about giving this one company a free, exclusive, national license for the 20 MHz of spectrum left over from the federal spectrum cleared for last summer’s AWS auction. While M2Z filed its application in May ’06, it took the FCC awhile to figure out what to do with it, since it doesn’t have any rules or pending proceedings that cover what M2Z wants. Finally, back in February ’07, the FCC issued a generic public notice of the application as required under the Communications Act and asked for piublic comment on what the heck to do about it.

Given my rather low opinion of Cyren Call’s efforts to get a free, national license, one might expect me to take a similar dim view of M2Z. Nor has M2Z helped its case much with some rather ham-handed “outreach” to the public interest community, by spamming the attendee list of the National Conference on Media Reform and creating a “Coalition for Free Broadband” website that looks all the world like an off-the-shelf Astroturf project.

Finally, Sascha Meinrath, who I look to for wisdom and advice on all matters spectrum, has written this blog entry on why he opposes the M2Z proposal.

Despite all this, I still think that M2Z deserves support. My employer Media Access Project filed a letter in support of M2Z. At the least, it deserves a good hard look before writing it off as yet another theft of spectrum via privatization.

Why? See below . . . .

Continue reading

Shout Out for New Econ Blog

For those who subscribe to Tales of the Sausage Factory but not Wetmachine Main, I thought I would let you all know that my friend and ace economist Dr. Gregory Rose has started a new blog here at wetmachine called Econoklastic. You can read his first post here. Regular readers will recognize Greg’s name as the author of several spectrum studies that I quote incessantly, such as the ones describing how SpectrumCo and its wireless allies blocked competitors from getting licenses in last year’s AWS auction.

As you can tell from his first post, Greg is quite contrarian and willing to grind more than a few sacred cows into hamburger. It’s why we like to keep him around.

Stay tuned . . . .

Dr. Rose Proves It Was Spectrum Co. In The Kitchen With the Candlestick . . .

My good friend Dr. Gregory Rose has released two studies on last summer’s AWS Auction. I just bloged about them at length over at the Public Knowledge policy blog. So rather than repeat myself, I will merely say:

I argued after the AWS auction that cable companies and wireless incumbents had used the auction to kill DBS as a competitor. Rose proves that in his first report,
How Incumbents Blocked New Entrants In The AWS-1 Auction: Lessons For The Future.

Rose’s second report, Tacit Collusion In The AWS Auction: The Signalling Problem, looks at the use of bids to communicate. Again, as I’ve argued before, only by adopting anonymous bidding rules can the FCC stop bidders from suing the auction process to signal each other.

For the rest of my commentary, check out my PK blog.

Stay tuned . . . .

Appears that Rose and Lloyd (and me) were right . . .

A month or so back, I reported that Greg Rose and Mark Lloyd had written a study for the Center for American Progress concluding that incumbent wireless providers used spectrum auctions to block the mergence of new competitors. Then came the AWS auction, with its legion of bidders. “A ha!” Declared the Wall St. Journal and others in the anti-net neutrality, anti-regulatory, pro-spectrum property camp. “Look at how the market-based policies create competition! No need for regulation here!”

Turns out, not so much . . . . Either for new spectrum entrants or for broadband competition.

Continue reading

FCC Bidding Credits and Digital Inclusion

For the forseeable future, we’re stuck with spectrum auctions, so we may as well try to get them to work as well as possible. Contrary to what some folks argue, I don’t think that means just jacking up one-time revenue to the government. It means trying to get licenses to folks who don’t usually get ’em (like women-owned businesses, minority-owned businesses, and small businesses generally), trying to get services deployed to underserved communities, and trying to foster real competition.

So last week, MAP submitted a lengthy set of comments (including a 30-page econ analysis from my economist friend Greg Rose) on reforming the FCC’s designated entity “bidding credit” for the upcomming AWS auction.

What does all this mean, and why should the guy who says “spectrum auctions are the crack cocaine of public policy” care? See below . . .

Continue reading