The Exciting Conclusion

Yesterday we took a quick look at the history of the 700 MHz frequency range and what it’s good for. Now we got all the background stuff out of the way we can get into the really good stuff.

There are two large blocks of the 700 MHz frequency range that are being auctioned off; they are referred to as blocks C and D. These are the ones that everyone wants to get their hands on. There have also been a lot of people worried about the auction. The main concern is if you auction off the rights to build the wireless network of tomorrow it’s obvious who will win - the entity willing to spend the most money. Who will be willing to spend the most money? They’ll need deep pockets and want to change the industry….or, more likely, they’ll need deep pockets and want to keep their strangle hold on the status quo. Many worry that AT&T and Verizon will snap up the spectrum and under-utilize it.

So here’s the twist. The FCC decided to make some rules that the winner of the auction will have to follow. Whoever wins the rights to block D will also have to build a nationwide wireless network that is good enough to meet public safety specifications for coverage and redundancy. Basically, they have to build a first responder wireless data network, which is cool.

The really big story is whoever wins block C (which is the one with the most commercial promise) has to follow open access rules. There are two open access rules that the FCC has set. The network must be open to devices and open to applications. That’s huge. Basically it says if Verizon wins they can’t dictate which phones are allowed on the network and what software they can download and use.

Anyone who has used Verizon in the past knows they have a penchant for crippling their handsets so all the features the phone is capable do not function, then they usually try and nickel and dime you for some form of partial functionality. Remember when camera-phones came out and they claimed that the only way to get the photos off the phone was to pay them to email them to you? Ever wonder why is so damn hard to move your phone book on and off their phones (but they can do it for $15), ever wonder why saints and babies cry? Verizon’s anti-user business practices are the answers.

The winner of block C will have to compete against any phone that comes to market and meets the interface specs. That means we might start to see cell phones in the States that are as cool as the one in South Korea. For those of you that don’t know, South Korea is way ahead of the US in cell phone technology. Do you think we were the first ones to get the Chocolate? Bah. South Korea had that phone a year or two before we did….and when they had it; it was dark brown like a chocolate bar (thus the name!)

Not everyone is happy with the open access auction rules. Google had been pushing for more rules. In addition to the open device and open application requirements, Google wanted to see open service and open network rules. Basically Google wanted the winner to have to provide access to block C at wholesale rates so smaller companies could be created to compete with the winner using the winner’s own network! I believe this is sort of how the landline phone system works. That’s why there was an explosion o f the cheap long distance companies…they’re using the big boy’s phone networks.

Verizon on the other hand has gone to court in an effort to sue and get all the open access restrictions dropped from the auction. In Verizon’s twisted mind the open access rules will "limit the introduction of new and innovative wireless services." I personally think they will prevent Verizon from limiting the introduction of new and innovative wireless services…

So that’s why the 700 MHz auction is cool. It might mean wireless broadband access with new devices that are not strictly dictated by the two big cell phone companies. Sounds pretty awesome to me.

For the record I am a Verizon customer. I think they have a good network with craptastic customer relations and crippled handsets. Anything that might force them to improve in their two weak areas is ok by me.