Post-auction pandering

Scan the list of A and B Block winners in the recent 700 MHz auction and you’ll see a lot of familiar names from the Independent telecom industry. CenturyTel won a considerable number of licenses. Cellular South also nabbed a few. And many smaller landline and wireless companies won at least one license. Even some unfamiliar names have a familiar company behind them. U.S. Cellular won a substantial number of licenses bidding as King Street Wireless.

As service providers like these begin to formulate their plans for the new spectrum, they face a wide range of choices in 3G and 4G wireless technologies. The winning companies can learn a few things from their peers that won spectrum in an earlier auction in the lower 700 MHz band. Chibardun Telephone Cooperative already has deployed a pre-standard version of WiMAX in that band, and although the offering does not yet support mobile service, it has enabled the company to economically offer fixed high-speed data services.

Meanwhile, Independents that were outbid in the recent auction could get another opportunity. There was no winning bid for the D Block license, which was supposed to go to a single national carrier that would share the network with the public safety community. Plans for that block now have to be revamped, and some have suggested scrapping the idea of a single licensee, which could create an opening for Independents.

Perhaps that move also could open up the possibility of using existing funding mechanisms to pay some network costs. Considering that the shared commercial/public safety network is targeted to be ultra-reliable -- and presumably able to support lifeline service -- I wonder if some construction costs could be covered through the Universal Service Fund high-cost support program. Perhaps a mechanism could be established to transition funding away from traditional infrastructure as operators build new networks. I would think the Rural Utilities Service loan program also could play a funding role. Let me know what you think.

E-mail me at JoanEngebretson@cs.com.