Tales of the Sausage Factory

We Release Our First Actual Industry Report on Upcoming 2.5 GHz Auction.Go us and buy our stuff!

Fellow Wetmachiner and all around spectrum genius Dr.Gregory Rose has written a report on the upcoming FCC Auction 86 in the 2.5 GHz BRS Band. Dubbed “The WiMAX Band: (2.5 GHz): Characteristics, Technology, Major Spectrum Holders in the BRS-EBS Service and Prospects for Auction 86, and edited by Harold Feld, this report contains information vital to understanding how the evolution of the 2.5 GHz band and the FCC auction beginning at the end of October will shape WiMAX Deployment in the United States. Resources with the Report include:

A Searchable Database of All BRS and EBS Licensees and Spectrum Lessees. Anyone who has used the FCC’s Universal License Service knows how difficult it is to search for even basic information. The master database takes all the information and puts it into an easily searched Excel® spreadsheet.

Special breakout tables and coverage maps for Clearwire and Sprint. Convenient tables and coverage maps show the coverage and relationships of these WiMAX giants.

• Analysis of the top 35 other providers. The report also lists the top 35 licensees in the band after Sprint and Clearwire, describing their general market areas and what their spectrum holdings say about their strategies.

The report cost $499 until FCC Auction 86 beginson October 27, at which point it goes up to $799. Those purchasing at $499 may buy the post-Auction update, scheduled to come out 3 months after Auction 86 closes, for a savings of $200 off the full post-auction price.

Copies of the report are available for sale at Broadbandcensus.com and at Muniwireless. Click HERE to get your copy today!

To see the full press release, click here.

To read the executive summary for free,click here.

Stay tuned . . . .

tags: wimax, wimax band, 2.5 GHz, wireless, spectrum, wimax report, wimax auction, fcc, fcc auction, fcc auction 86, harold feld, gregory rose, strength to strength develop-ed.

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Econoklastic

Verizon's “Perfect Storm”: A Reason Why 700 MHz Band's C Block Cleared On the Cheap

Some critics of the 700 MHz Band Auction (Auction 73) attribute the failure of C Block — which consisted of large Regional Economic Grouping (REAG) licenses — to clear at the kinds of premium over the licenses in the AWS-1 auction that the Economic Area (EA) and Cellular Marketing Area (CMA) in the A, B, and E Blocks did to the fact that C Block had wireless Carterfone service rules attached.

However, careful analysis of the dynamics of the auction suggest that interaction of the auction’s combinatorial bidding, eligibility and activity rules, and the way in which minimum acceptable bids were calculated created a “perfect storm” in which Verizon was able to scoop up the two most populous REAGs for nearly half a billion dollars less than bidders were willing to pay earlier in the auction. This had a seriously depressing effect on the price at which C Block cleared and had nothing to do with the wireless Carterfone service rules.

More below…

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Tales of the Sausage Factory

Quick 700 MHz Updates

First, we at PISC have sent a letter to the FCC asking the FCC to sever the D Block issues, announce the winners of the rest of the auction, and thoroughly investigate the allegations around Cyren Call and its pre-auction discussion with Frontline. (Martin has apparently already circulated something that severs D Block, so they can announce results as soon as the other Commissioners vote and the wireless bureau finishes the necessary housekeeping.)

Perhaps more importantly for the long run, we ask that the FCC take a hard look at whether to try to fix the public/private partnership or possibly do something else. The FCC has a lot of options here. And with the auction clearing over $19 Billion and the statutory requirement to start an auction before January 28, 2008 fulfilled, the money pressure and time pressure are off. We have time to have a public process and do it right.

Second, here is Kevin Martin’s official statement explaining why the auction was a huge success (and, by implication, why he did a bang up job getting this done). Martin, sensitive to the grumblings from folks who say that different rules could have gotten more revenue, included this handy chart showing that, on a pure revenue basis, the 700 MHz auction is the most successful FCC auction ever.

(In the reading the tea leaves department, I note that the chart subtracts out the D Block bid. And indication the FCC won’t just pass off the D Block to the lone low bidder? Maybe, but no surprise if that turns out to be the case.)

You can find Tate’s statement here. I have not seen official statements from any of the other offices.

Stay tuned . . . .

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Tales of the Sausage Factory

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.

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Tales of the Sausage Factory

Handicaping This Week’s Big Spectrum Auction

And what a long strange trip its been to get here! In 2004, Congress passed the Commercial Spectrum Enhancement Act (CSEA), which required government users to vacate some choice spectrum so the FCC can auction it. You can see the FCC’s official page for this auction here. You can see my recent general musings on this auction on the Public Knowledge policy blog here.

But none of this tells the whole story. After two controversial rulemakings, a pending legal challenge, and the appearance of a host of new bidders, FCC Auction 66: AWS-1 is ready to start this week on August 9. A look at the list of who has come to play signals an auction of unparalleled visciousness, determination, and probable manipulation by sophisticated bidders because the FCC wussed out and did not adopt anonymous bidding.

For those interested in my handicaping what a report from the Center for American Progress describes as a corrupt means by which incumbents keep out competitors and what I have called “a really wonky version of Worlds of Warcraft,” read on!

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