700Mhz auction: who will be coming to Harrisburg, PA?

Depending on whom you read, the auction is making good, predictable progress or barely inching forward. I agree with the former. The nationwide C-block package, the one with open-access requirements, is approaching its reserve amount. The total bid is closing in on the pre-auction estimates of "over $10 billion." All this with less than a week gone. So I think we'll be fine, in spite of the slow bidding thus far for the D-block, public safety band.
So the real question is:

If the 700mhz band is wireless "beachfront property," then who wants to build a trashy wireless boardwalk in my town, Harrisburg, PA?

For answers, I turn to Greg Rose's Econoklastic blog, which has been the most insightful resource I've found about the auction, and the stories behind it. Greg has done a sprawling, six-part post (1, 2, 3, 4, 5, 6) on who might be bidding for which slices of spectrum. What does Greg think about Harrisburg, or, more specifically, the Harrisburg-Lebanon-Carlisle A- and E-block components?

Verizon will be aiming at the nationwide license bundle. But others, such as MetroPCS, Cricket, and Alltel, who need to fill in coverage gaps might be interested. While most of these folks would prefer the larger B-block licenses, they will use the A's and E's as fallbacks.

How about cable companies? Sorry, no. The qualified bidders (Cablevision, Cox, Advance/Newhouse) are expected to stay in their regions. Our dominant cable provider, Comcast, is sitting the auction out.

Chevron, a wild card? Greg expects them to target offshore regions where their oil platforms reside.

And, of course, Google. They are aiming at the nationwide C-block package. I for one really want the opportunity to buy a Google phone and subscribe to Google service. I can't imagine what that would be like, except I'm pretty sure it wouldn't resemble the wireless experience as we know it today.

We can only hope they're successful...

(Photo by weirdvis)

broadband, technology, wireless, Google, 700MHz auction

700 MHz auction - away we go

The long-awaited (and I mean long-awaited) 700MHz spectrum auction kicked off yesterday with the first two rounds of bidding. To maintain bidder confidentiality and try to prevent gaming the system, individual bidder names are not released--results only reflect the total amount bid in each individual auction.

The bottom line: a lot was bid yesterday, but nowhere near the FCC's "reserve" amount. This is especially important for the C-block spectrum, which will have open access requirements should the amount bid exceed the government's target of $4.65 billion (which Google, the most prominent name in the auction, could fund out of petty cash).

The C-block nationwide bid was for $1.2 billion, a tidy sum, but a long way from $4.65 billion.

Some quick facts on the auction method being used:

• C-block spectrum is segmented into three packages: a "nationwide" license, one covering the Virgin Islands and Puerto Rico, and one covering US Territories in the Pacific.
  
  
• D-block spectrum is in twelve regional segments.
  
  
• Bidders submit sealed bids each round.
  
  
• Software calculates minimum bids required to continue participating in the auction and publishes them. Bidders can choose to place the next bid at the minimum amount or drop out.

And so it goes, until there are no more higher bids. As long as the FCC's reserve amount is met, the auction is done and the winners pay for their licenses. If it's not, the licenses are not distributed and we do it all again.


broadband, technology, wireless, Google, 700MHz auction

Reviewing the recent 700MHz auction chatter

Awaiting the 700MHz wireless spectrum auction, which begins on 24 January, is a bit like waiting for the Super Bowl. There's endless speculation, story-making, background, and then it's finally game time.

On second thought, it's like waiting for the Super Bowl if you are one of the probably 10,000 or fewer wireless fanatics out there. For everyone else, it's more like waiting for nothing at all.

At any rate, apologies to the millions who don't care about the spectrum auctions, and on to the recent chatter:

Harold Feld on Wetmachine discusses Google's motivations for bidding in the auction. While there has been some speculation that Google is simply bluffing, Harold is certain Google will participate and win. I agree with him.

Some of this speculation results from analysts' puzzlement over what Google will do with the spectrum, given that their business is as far from a network operator as you can get. To me, Google's strategy is very simple: win the auction, then lease the spectrum to people who will adopt Google-friendly (euphemism: "open") access rules for content providers.

Ike Elliott, on Telecosm, forecasts that Google winning spectrum will accelerate the development of the mobile VoIP market. As a hard-core Skyper, I'm rooting for that outcome.

Chetan Sharma in GigaOM describes the uneasy alliance/battle between network operators and media companies, which the auction results will affect.

For those interested in arcane mathematical models, Caltech rode on the coattails of the 700MHz auction hype to issue a press release describing how one of its professors created the bidding approach that the auction will use.

Finally, Rhonda Wickham, in Wireless Week, talks about the possibility that the auction may turn out to be a lot less spectacular than the anticipation would warrant.

On reflection, maybe it's not so different from the Super Bowl after all.

(Photo: "Countryside Auction" from jansun via stock.xchng)

broadband, technology, wireless, Google, 700MHz auction

Here comes the US 700MHz wireless auction

On January 24, the US Federal Communications Commission will auction off 62MHz of spectrum in the 700MHz band, where ultra-high frequency broadcast television channels operate today. This frequency range is perfect for high-bandwidth, long-distance propagation--i.e., wireless broadband.

We've written in this space that the US desperately needs more broadband options (see here and here). So this auction could (hopefully will) help reshape the broadband competitive landscape. Over the course of the auction, Shop Talk will post on its progress, the main players, and what it could mean for the US wireless and broadband industry.

Stay tuned.

To whet your appetite, read these excellent posts from Gregory Rose's Econoklastic blog covering all the companies that have registered to participate in the auction (1, 2, 3).

broadband, technology, wireless, 700MHz auction