December 5, 2007

PC World - A Primer on the FCC's 700MHz Auction

Here's a concise summary of the upcoming auction of the frequencies in the 700 MHz band, the spectrum now occupied by channels 52-69 in the UHF band for over-the-air TV.

This spectrum will fetch BIG $ as the major and minor players in the wireless game compete for the choice chunks in the areas they wish to serve.

For consumers this is a VERY big deal because this spectrum can be the underpinning for wireless broadband nearly anywhere. Using this spectrum will be the most feasible way for broadband to reach the more sparsely settled regions of Vermont and other rural areas.

People are crying for broadband and this is the most likely way for them to get it, along with the cellular broadband that shares the higher frequency ranges with cell voice service, such as Verizon's BroadbandAccess service.

Speculation abounds about Google's plans for wireless service since they announced their intent to bid in January's FCC auction. My guess is they will partner with a carrier that understands the deployment and operation of a customer network. (Verizon??). Perhaps someone on the Vermont Telecommunications Authority has good friends at Google and will persuade them to think kindly of Vermont as they bid!

For sale is 62 MHz of spectrum in the 700MHz band. In late 2005, after a decade of debate, Congress passed a law requiring U.S. TV stations to move to all-digital broadcasts and abandon analog spectrum between channels 52 and 69.
The deadline for TV stations to end broadcasts in the 700MHz band is February 2009.

The spectrum is broken up into
five blocks. The C block, a 22MHz of spectrum that has the open-access rules, is broken up into 12 regional licenses across the U.S. A bidder can win one or more of those regional licenses.

The A block is 12MHz, broken up into 176 smaller regions called economic areas, as is the 6MHz E block. The 12MHz B block is broken up into 734 local areas called cellular market areas. Again, bidders can win multiple regional or local licenses.

Finally, 10MHz of spectrum in the D block, paired with about 10MHz set aside for public safety, is a nationwide license.

Congress has budgeted the auctions to raise at least $10 billion, but many observers expect them to cost much more. The FCC set the reserve price for the C block of spectrum at $4.6 billion.

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