Press Release
Spectrum Auction Won't Bring Needed Broadband Competition
Contact: Timothy Karr, 201-533-8838
WASHINGTON -- The Federal Communications Commission today set the rules governing the auction of the highly valued 700 MHz band of spectrum. The FCC will require the auction winner to use a chunk of the airwaves to build a network where consumers can attach any mobile device and use any application. But the new rules fail to guarantee wholesale open access, the policy that would bring new retail competition into the wireless market.
Free Press Policy Director Ben Scott issued the following statement:
"This decision represents a small step forward for consumer choice in mobile phones, but a large step back for genuine broadband competition that could bring the benefits of the Internet to all Americans. Unlocking devices on a small slice of the public airwaves is valuable for increasing consumer choice -- but only if the rules are properly enforced and the rest of the wireless world follows suit.
"And we should be clear -- this step does nothing to address the failing broadband marketplace that has left too many Americans on the wrong side of the digital divide. The FCC's failure to place a wholesale condition on licenses in this auction means the chance for truly robust wireless broadband competition has been squandered. History will record today as an opportunity lost.
"The mythology of Washington power politics has painted this spectrum auction as a battle between corporate giants AT&T, Verizon and Google -- ignoring the hundreds of thousands of Americans who urged the FCC to open the airwaves, not just to devices, but to real competition. We're very disappointed that the FCC didn't listen to the public and seize this last, best opportunity to use the public airwaves to bring a true, third competitor to challenge DSL and cable modem's domination of the broadband market.
"Moving forward, the FCC must ensure that the provisions unlocking devices are enforced. It is now up to Congress to contend with the real problem of broadband competition. Until Congress remedies the FCC's failure and enacts a new national broadband policy, the United States will squander billions in potential economic gain and continue its free-fall in the world broadband rankings. We cannot afford to continue, nor long sustain, the path we are on."
Free Press Policy Director Ben Scott issued the following statement:
"This decision represents a small step forward for consumer choice in mobile phones, but a large step back for genuine broadband competition that could bring the benefits of the Internet to all Americans. Unlocking devices on a small slice of the public airwaves is valuable for increasing consumer choice -- but only if the rules are properly enforced and the rest of the wireless world follows suit.
"And we should be clear -- this step does nothing to address the failing broadband marketplace that has left too many Americans on the wrong side of the digital divide. The FCC's failure to place a wholesale condition on licenses in this auction means the chance for truly robust wireless broadband competition has been squandered. History will record today as an opportunity lost.
"The mythology of Washington power politics has painted this spectrum auction as a battle between corporate giants AT&T, Verizon and Google -- ignoring the hundreds of thousands of Americans who urged the FCC to open the airwaves, not just to devices, but to real competition. We're very disappointed that the FCC didn't listen to the public and seize this last, best opportunity to use the public airwaves to bring a true, third competitor to challenge DSL and cable modem's domination of the broadband market.
"Moving forward, the FCC must ensure that the provisions unlocking devices are enforced. It is now up to Congress to contend with the real problem of broadband competition. Until Congress remedies the FCC's failure and enacts a new national broadband policy, the United States will squander billions in potential economic gain and continue its free-fall in the world broadband rankings. We cannot afford to continue, nor long sustain, the path we are on."
