700 MHz War: Frontline Challenges Verizon While AT&T Mulls Auction Plans

The battle to try and influence the decision of the FCC as to the rules of the upcoming spectrum auction is heating up, with major telcos (Verizon is targeted) challenging the plans to include first-responder capabilities. A summary of the situation is best put forward by Frontline’s retort: “Now that Verizon is hiring teams of surrogates to attack Frontline, we have to recognize Frontline is taken seriously by the most powerful telephone companies in the world,” said Frontline’s Hundt. “What is really important is not Frontline, but homeland security. We invite Ivan Seidenberg, Verizon’s CEO, to meet in Washington any one of Frontline’s partners to debate the merits of Frontline’s plan to build a national public-safety network versus Verizon’s plan. Because Verizon and the FCC must realize America needs a national interoperable, wireless public-safety network” reports RCR News. Of course Frontline’s proposal for the rules gels neatly with its intended business model, and Verizon is against it because it doesn’t gel with its business model, but the outcome is important because this is largely seen as the last strong opportunity to get more competition in the mobile space via another player. CTIA has come out saying that “a public-private licensing approach–especially one based on a wholesale model with various conditions attached–would scare off bidders to the benefit of Frontline and detriment of the U.S. Treasury”, although I don’t think the FCC should be trying to squeeze every last dollar it can out of the industry but should instead be focussed on what is best for America. Frontline is getting a lot of support from other than the big mobile carriers.

AT&T is being portrayed in some places as prepared to bid for spectrum with public-private licensing rules based on comments by AT&T Senior VP Robert Quinn Jr, but he really said AT&T hadn’t ruled out bidding on the spectrum. AT&T is against the proposal by Frontline, but has taken the sensible approach of not committing itself to a course of action before it sees the rules laid down by the FCC.

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