The Wireless Internet Nationwide for Families Act was introduced by Rep. Anna Eshoo (D-Calif.) and backed by Ed Markey (D-Mass.) and Rep. Chris Cannon (R-Utah). CNet points out that the bill sounds like a plan proposed by a startup called M2Z, which wanted to build a 384-kilobit network on this spectrum that was free, but ad-supported. If this becomes a legit spectrum auction, M2Z would presumably be one of the bidders (the FCC insisted that the company play by the usual auction rules). Rep. Eshoo says that her plan will hopefully engender "a new kind of national broadband service provider."

My instinct is that it isn't going to get very far, for assorted reasons:
• No company with enough cash to build a network like this would take the risk on a completely new business model.
• An "ad-supported" system of weak wireless broadband might be more annoying than useful, even for people who can't afford an alternative.
• The unfortunates targeted for this service would still have to buy or be given equipment that runs on the particular frequency band.
• If all you need to do is promise those low speeds, you could more cheaply create a compressed dial-up service that runs over traditional copper-wire phone lines.
• In the recently concluded 700MHz auction, the so-called D Block was left untouched because of its requirement of a nationwide public-safety network.

Sometimes I wish politicians needed higher-ed degrees in order to serve. This scheme could have used expertise in econ, psych, engineering, maybe even a little history. [CNet]

VERIZON WIRELESS SAYS SPECTRUM ADDITIONS FROM FCC'S AUCTION 73 WILL FURTHER COMPANY'S BROADBAND STRATEGY

BASKING RIDGE, N.J. - Verizon Wireless said today that the spectrum it gained in the FCC's recent 700 MHz auction is a critical piece of its overall broadband strategy to take advantage of the enormous opportunity for growth in data services in the future. The spectrum will allow the company to capture the full potential of its announced plan to deploy a Long Term Evolution (LTE) network and Open Development Initiative and the resulting next wave of wireless innovation. The company's comments were made in a conference call with the investment community this morning.

Verizon Wireless was the winning bidder for a nationwide spectrum footprint (excluding Alaska) in the FCC-termed C-Block group of licenses, plus 102 licenses for individual markets around the country.

In all, the company will pay $9.36 billion for these licenses, which equates to $1.03 per MHz Pop, compared with the auction average of $1.20.

The FCC announced the end of the auction on March 20, but the company was limited in commenting until the Commission's anti-collusion quiet period rules ended late in the day on April 3.

The new spectrum, which will not be completely cleared for use until mid-February 2009, will increase the company's average spectrum depth per market to 82 MHz, from 52 MHz today.

Verizon Wireless plans to launch its LTE network in the 700 MHz spectrum in the 2010 timeframe. The company said the breadth of the national C-block spectrum footprint, all in a single band and with a depth of 22 MHz, provides a speed and performance advantage that will be ideal for connecting a variety of consumer electronics, from wireless phones to medical devices to gaming consoles. In addition, the 102 individual licenses in the A and B-blocks provide additional growth capacity in key markets.

"The spectrum we purchased in this auction, combined with our existing portfolio, provides new flexibility as we execute our high-growth business model," said Lowell McAdam, the company's president and CEO.

"We now have sufficient spectrum to continue growing our business and data revenues well into - and possibly through - the next decade, and this is the very best spectrum with excellent propagation and in-building characteristics. We also believe that the combination of the national, contiguous, same-frequency C-block footprint and our transition to LTE will make Verizon the preferred partner for developers of a new wave of consumer electronics and applications using this next generation technology.

"In all, this spectrum positions us well to preserve our current advantage and reputation as the nation's most reliable wireless network and the leader in data services. This is a wise investment in future data growth opportunities," he said.

Note:

A replay of the presentation webcast can be accessed on Verizon's Investor Relations Web site, www.verizon.com/investor.

So, when's that awesomeness going to happen? Ralph says they "don't need the [new] spectrum tomorrow or even next year" because HSPA (their current 3G standard) has "a lot of headroom." They're going to roll out 4G "when the consumers demand it" (um, I want it now) and when the gear shows up to support it. Feb. 2009 is when the spectrum is clear for use, and beyond that "I think you'll begin to see commercial deployment in select locations." Good news: It's going to be cheaper per megabyte of data. Bad news: You won't really see widespread commercial deployment until 2012. But! They're planning on doubling their 3G speed to 7.2 Mbps downstream in the next year.

Won't comment on WiMax, which presumably, theoretically, maybe will be rolled out sooner than AT&T's 4G network.

He's kind of pooing on the C block which Verizon bought because it's stuck with open access rules—hampered with more regulations, etc. The C block chunk they bought from Aloha earlier wasn't subject to open access rules, and the B block slices they bought to fill in the gaps during the auction wasn't either. Om Malik asks if Ralph's referring to open access rules. Ralph replies that's "exactly correct." He also calls the regulations on the C block "excessive" which gives AT&T flexibility that "other" C block winner won't have.

A dude from the NY Times asks if the open rules kept them from bidding on the C block. Ralph says, "Our strategy in the auction was to complement the spectrum we had already acquired" from Aloha and "we accomplished exactly that." He dodges a follow-up trying to pin down whether they would've bid on the C block if there had been no rules placed on it.

On open access: "I think it's difficult to define what 'open access' is" but AT&T is all about choice, and their networks will be open for applications and development. "It's all about giving customers' choices." Reiterates that you can use any GSM handset "today" while some people are "just talking about it." *Makes dirty eyes at Verizon*

And we're done.

Interestingly, the open access C block was the only one to march past its reserve price of $4.6 billion (courtesy of the Goog), with a winning bid of $4.744 billion, probably by Verizon. The winners can claim their prize in less than a year. Good times for all to ensue! [RCR News]

As Saul Hansell points out, if we see the bidding continue to escalate, it indicates that Google might actually be playing to win (though it's doubtful), as long what we're seeing isn't an influx of bidders locked out of the B block pool by rocketing prices—driven up, no doubt, by big telcos looking to patch up holes in their 700MHz network.

Like say, AT&T, whose purchase of $2.5 billion worth of 700MHz spectrum licenses back in October finally got the FCC rubber stamp earlier today. Regardless, the picture will start getting clearer a lot quicker as of tomorrow, when the auction moves into the higher stakes phase 2, where entrants are basically forced to bid hard and fast. [Bits, PC World]

In case you're curious, the study consisted of 35 men and 36 women and ran for 18 months. During that time, the people were exposed to the RF radiation at random times. Another control group was observed, but did not receive the RF blasts. The end result was a finding that the cellphone radiation caused not just insomnia, but headaches and difficulty concentrating.

"The ones who were exposed reported headaches, it took longer for them to fall asleep and they did not sleep as well through the night," said Bengt Arnetz, a professor of social medicine and stress research at Uppsala University in Sweden, which conducted the study alongside Sweden's Karolinska Institute and Wayne State University in Michigan. [AFP/SMH]

WTF Is This 700MHz Deal?
We're not getting into the technical nitty-gritty of the electromagnetic spectrum. Just know that there's only a finite amount of it for broadcasting and telecommunications, so spectrum licenses—the right to use a particular chunk—are really valuable. Analog TV is currently broadcast over the 698-806 MHz range of the UHF band: the ballyhooed "700MHz spectrum." But the FCC will kill off analog TV on Feb. 19, 2009, and will auction off the right to use it for other purposes.

Why Would Someone Pay BILLIONS for It?
Every frequency band has slightly different physical attributes. The 700MHz band penetrates walls fairly easily and travels well, making it perfect for either cellular or long-range wireless broadband that could provide an invisible alternative to DSL and cable. It could simply augment a major telco's existing holdings with a powerful wireless network, but it could also mean a lucrative new ISP for Google or some other non-telecom behemoth.

Going Once...
So here's how the auction will work. There are five blocks A-E, divided up regionally. Everyone had to secretly declare their intent to bid to the FCC by Dec. 03, and can't talk about it at all now. Cue Google's not-so-secret entrance last week. The actual auction will take place on Jan. 24 with a minimum bid of $4.63 billion to get at the C block. Winners can pick up their prize in Feb. 2009.

The reason all the excitement's been over what goes down with the C block, is that Google convinced the FCC to load up with "open access" provisions: The winner has to make the network open so any "safe" device use it, plus they have to make their own networked devices open as well—the exact opposite of what Verizon's handsets are right now. Before Verizon's recent Mitt Romney-likerevelation that open networks are the One True Path, the veteran telecom fought the openness provisions with every trick in the book, from backdoor deals to lawsuits. Verizon actually sued the FCC over this exact provision—that the C block winner allow any device on the network—that it is celebrating with pig-in-shit PR glee right now. The rules (thankfully) stuck, and Verizon changed its tune.

The Players
Here's a list of the bidders:
• Google, obviously
• Verizon and AT&T, the other two heavies
• Cox Cable, probably looking to start a wireless internet service
• DISH Network
• Leap Wireless
• Frontline Wireless, a startup

Here's who is not in:
• Time Warner
• Comcast
• Sprint
• Clearwire

Big investments are too risky for all of the above, plus those last two already have their plates full trying to get their busted-ass WiMax deals off the ground.

How It Might Go Down
The educated guess is that Google is bidding to not look like a dick. It may not be playing to win, but after all of the previous big talk and the launch of the OHA business, it needs to show up. Evidence for our skepticism: Google is going it alone, and was already looking for ways to finance just the minimum $4.6 billion bid. Circumstantial evidence: Google's statements of late haven't been very enthusiastic about the prospect of winning; the ol' college reading between the lines says it's not planning to. But, it did get the open access provisions it pushed for, so there's really no need to finance the network on top of it.

AT&T just bought a massive chunk of 700MHz spectrum from Aloha Partners for $2.7 billion a couple months ago, so it's probably going to focus its bidding on the regional licenses to fill in the gaps.

Our feeling has been that Verizon's going to be the juggernaut, even before it gets all lovey-dovey with third-party devices. It's been rabble-rousing over the rules for months—trying to get FCC chairman Kevin Martin to shitcan the open access provisions—and spitting back and forth with the Google the entire time. Reading between the lines again, it's clear it's always intended to bid win.

In fact, Verizon's 700MHz dreams probably played a significant role in opening up the network, whatever other feel-good reasons their PR department might tell us. Why? For one, to placate Kevin Martin, who's pretty hot on openness and competition. He koshered the open-access rules in the first place. It'll be interesting to see if Verizon tries to go war post-auction to fight the provision requiring unlocked hardware on the C block, since its open-network announcement implied that Verizon's own gear would stay locked down like Guantanamo.

Our money is on Verizon for the total C block win.

The Afterglow
Verizon winning the C block pretty much kills previous utopian notions of a mythical third pipe, outside the grasp of the vested telcos, bringing glorious open internets to us all. However, coupled with Verizon's recent announcements it could spell progress. The FCC probably won't let it go back to its evil ways. And you can expect Google to be all up on that, pushing search, services, ads and eventually hardware. The little guy might just get his crack at putting his dream device on the network too. We're warming up the soldering iron!

McAdam dismisses the idea that being a "founding" member of the OHA would have been anything more than a press-release opportunity for the carrier. Once the dev kit went out, though, he says his engineers were impressed.

"Clearly the Android system gives a lot of developers the opportunity to develop applications for a wide range of handsets."

The result has been what we have reported over the past week: Verizon declared its network open to all phones and devices that share its network technology, following an easy security and functionality verification process. Furthermore, Verizon will migrate to the 4G standard co-developed in Europe by its parent company Vodafone, Nokia and the 3GPP, a standard that would be in line with much of the world's wireless data network.

Though this could be showboating for the FCC in the period leading up to the 700MHz spectrum auction, BusinessWeek points out the same impression that we've had, that the openness model is inevitable, and that "market demand for open networks would be impossible to hold back indefinitely." You hear that, AT&T? [BusinessWeek]

Google's coming out statement—essentially "whoever wins, everybody does"— was noticeably limp. No fire in their words probably signals no fire in their bid, basically.

On the other hand, Verizon throwing open its network is a decidedly hard throwdown with regard to its auction intentions. The winner of the 700MHz's contentious C Block is required to have such an open network (though only on that chunk), meaning Verizon may be strongly signaling its intent to bid and win. Gird your loins for endless "It's the Network" catchphrases, just in case. [MocoNews, CNN]

The RTR6570 will support the following technologies:
• Upcoming 700MHz wireless networks
• CDMA network from Sprint or Verizon (1900MHz EV-DO)
• HSPA or UMTS data network from AT&T or T-Mobile (850MHz, 1700MHz and 2100MHz)

Now that you're all excited, the bad news is that chip samples won't be ready until the middle of next year, and phones themselves won't hit the market potentially until 2009. But these will certainly be worth the wait: the ability to roam on all three networks means that you will never have to worry about coverage again—though God only knows what the roaming charges will do to your phone bill. [Electronista]

Consumers deserve more competition and innovation than they have in today's wireless world. No matter which bidder ultimately prevails, the real winners of this auction are American consumers who likely will see more choices than ever before in how they access the Internet.

Google Will Apply to Participate in FCC Spectrum Auction

MOUNTAIN VIEW, Calif. (November 30, 2007) - Google (NASDAQ: GOOG) announced today that it will apply to participate in the Federal Communications Commission's upcoming auction of wireless spectrum in the 700 megahertz (MHz) band.

As part of the nationally mandated transition to digital television, the 700 MHz spectrum auction — which begins January 24, 2008 — will free up spectrum airwaves for more efficient wireless Internet service for consumers. Advocacy by public interest groups and Google earlier this year helped ensure that regardless of which bidders win a key portion of the spectrum up for auction (the so-called "C Block"), they will be required to allow their users to download any software application they want on their mobile device, and to use any mobile devices they would like on that wireless network. The winner must ensure these rights for consumers if the reserve price of $4.6 billion for the C Block is met at auction.

"We believe it's important to put our money where our principles are," said Eric Schmidt, Chairman and CEO, Google. "Consumers deserve more competition and innovation than they have in today's wireless world. No matter which bidder ultimately prevails, the real winners of this auction are American consumers who likely will see more choices than ever before in how they access the Internet."

Schmidt also praised the leadership of FCC Chairman Kevin Martin and his fellow commissioners for adopting the new rights for consumers earlier this year.

Google's formal application to participate in the 700 MHz auction will be filed with the FCC on Monday, December 3, 2007 — the required first step in the auction process. Google's application does not include any partners.

About Google Inc.
Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top Web property in all major global markets. Google's targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall Web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, visit www.google.com.

back at its headquarters, Google is already operating an advanced high-speed wireless network under a test license from the FCC, according to people familiar with the matter. The company has erected transmission towers on its campus for the network. Prototype mobile handsets powered by the Android software are currently running on it.

More over, according to the usual "people familiar with the matter," they're grinding out a plan to toss in all $4.6 billion or more all on their own because going in with partners promises complications in bidding setup and outcomes, as well as pissing off company A by going in with company B.

Why even jump into the messy, messy world of network operation when they've already got a hand in the jar with Android? The feel-good reason is that Google wants networks to be more open and competitive to drive more innovation and better, unrestricted services without artificial carrier walls and lockdowns.

The selfish side is that open networks mean carriers can't make it hard to use Google's wares or make Google pay carriers to get at customers. There's also the potential revenue of subscriber fees—hey, open doesn't mean free—and ads across the network, according to at least one analyst group.

Whatever Google decides, we'll know by Dec. 3, the deadline for declaring an intent to bid. And should they win, don't cream your jeans about the wild, woolly West of an open wireless network just yet, since Google—and any other winners—won't get their hands on the network until 2009, when analog broadcasts go dark. [WSJ]

The CTO would have a much different agenda than the head of technology under the current administration, the "cyber-security czar". While that post is concerned with preventing cyber attacks, the CTO would concentrate on critical issues facing the technology world as well as maintain an open line of communication between the government and the American citizens by using—what else?—the internet.

The rest of his outline includes plans to provide broadband access to areas lacking it, open up the 700MHz wireless spectrum so smaller carriers can compete, and create a federally-backed, $50 billion venture capital fund for the development of more environmentally-friendly technology.

Obama also wants a transparent government, where meetings between Cabinet officials and government executives are streamed live, and the public can comment on legislation on the White House website for five days before it is signed into law. Giving the public wide access to the policy makers is a radical step from the closed governments of the past. Though it kinda takes the term "commentard" to a new level. No word yet on Obama's banhammer, but we guess it will be as swift and merciless as ours, democracy be hanged.

Other proposals in Obama's technology manifesto include reforming the patent system to provide better security to important innovations and decreased protection for trolls, and regulations on network neutrality. Overall, Obama's plans seem very advanced, open-source and engaging to the community, things that any technology buff can appreciate. OK, Hillary: your turn to network with the nerds. [Venture Beat]

It supposedly has an "innovative receiver design" for improved noise shielding, which, to quote a friend, is necessary "so it won't interfere with everything else and give the FCC a bitchfit." Other features include: TCP/IP data rates over 50Mbps, scalable channel bandwidths of 5/10/20/40 Mhz, advanced QoS, 256-bit security, and full compatibility with available Linux drivers. No price or release date—but it probably won't actually matter for a couple of months anyway. [Ubiquiti via Daily Wireless]

The C block has a reserve price of at least $4.63 billion, which coincidentally matches what Google has pledged to spend on the auction. If it's not met, it goes up for auction again, sans open access provisions. Also, the value of entire spectrum up for grabs is now capped at $10 billion, with companies making less than $40 million picking up a discount on their bids. Finally, the auction's been pushed back by about a week to Jan. 24, probably to give companies more time to find their checkbook, since it looks to be a cash-flinging bloodbath. [Electronista]

Mobile video or expanded data services seem most likely. Regardless, they'll have time if they're truly undecided since they won't get their hands on it until at least 2008, when the deal closes, with some of it tied up until 2009. It'll be interesting to see how aggressively they bid in the upcoming auction, considering the coin they just dropped—is this move a way to sidestep the uncertainties of the auction (which Verizon clearly plans on diving into, hard) or are they planning on scooping up even more? We'll know soon enough. [Yahoo!/AP]

The first rule says that auction winners "shall not deny, limit, or restrict the ability of their customers to use the devices and applications of their choice..." while the second states that "no licensee may disable features on handsets it provides to customers...." Verizon's apparent rationale is that as long as unlocked devices from mythical other parties can connect to the network, competition—the raison d'être of the rules—is preserved.

While Google's obviously got a stake in the outcome—they're debating on jumping into the auction, pending the actual final result of the rule dispute—overall, I agree with them. If the rule vote in July was intended to be final it should stay that way, and an open-access network with open devices and applications looks to be far more promising for consumers than what we're currently stuck with. I mean it's possible someone likes the way current US cell carriers and telecoms do their business, but I've yet to meet them. [Google, Image via Flickr]

What would the deal mean for Apple fans? Think iTunes content that hits your iPhone/iPod/iMysteryDevice in data rates faster than Wi-Fi. And of course, think voice transmission without relying upon the AT&Ts of the world.

But the purchase would mandate a lot of infrastructure and busy work. Presumably Apple would farm out logistics to another firm, but still...it's a commitment that brings you directly into the wireless service world, which is full of headaches and federal regulation.

And who says $9 billion will take this spectrum? How the hell do we know how much cash is needed when some of the richest, most leveraged technology companies in the world are duking it out for US data dominance?

So who do you want to take the spectrum? [businessweek]

His solution? Mandate that future owners of chunks of the 700Mhz spectrum being auctioned off when analog TV goes kaput in 2009 make their networks neutral, allowing any "safe" device to attach to them, kind of like landlines.

Doing so would spur innovation, as Wireless Widgets could then bypass Big Wireless and put out ground-breaking, disruptive devices directly to consumers, ones the Big Four would never allow (sort of like Skype aims to do). Ars sees two other possibilities for the 700Mhz band, given its long range: "establish a new competitor in the wireless phone space and create a third national broadband option to rival cable and DSL."

Naturally, the Big Four aren't exactly enthused by the prospect of emergent competition on possibly multiple fronts. But the competition and innovation that could be stimulated by properly managing the upcoming auction would ultimately be a boon to consumers, either by radically altering the marketplace or forcing the titans out of their inertia.

So you know what to do: Fire up that email client (or snail mail) and send your favorite Congressmen a letter, telling them you're for free markets, innovation, American values, and all that jazz. – Matt Buchanan

Forbes Column on Wireless Innovation [Tim Wu via Ars Technica]
Image via Flickr