700MHz Auction Delayed

The FCC continues to mull several issues related to spectrum auctions. One big — and unresolved — issue is whether to allow large companies to bid in the upcoming C-block auction or whether it should be limited to small businesses.

However, in early May, the FCC did reach a decision regarding the 700MHz auction, which was scheduled to begin in June. It delayed the auction until September in order to give bidders additional preparation time.

New 700MHz Auction Schedule

Filing Deadline for FCC Form 175	Aug. 1, 2000
Upfront-Payment Deadline	Aug. 18, 2000
Orders for Remote-Bidding Software	Aug. 21, 2000
Mock Auction	Aug. 31, 2000
Auction Start Date	Sept. 6, 2000

Source: FCC Wireless Telecommunications Bureau

Several wireless providers requested the postponement. One petitioner, Verizon Wireless, argued in an April 21 letter to FCC Chairman William Kennard that a postponement also would give the FCC time to deal with uncertainties related to the auction. A key uncertainty surrounds the relocation of the TV stations still using the spectrum, currently home to channels 60 to 69.

Kennard also has expressed concern and frustration that some broadcasters lack plans for the transition from the 700MHz spectrum to DTV. During an April speech before the National Association of Broadcasters, Kennard said he's tried to foster partnerships between companies that plan to bid in the auction and incumbent broadcasters. Companies interested in forming such partnerships now will have a few more months to formulate a plan.

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What Consumers Want

With 92 million U.S. subscribers, getting a read on what they want from wireless is tougher than ever because declining rates are attracting wildly diverse demographics. A February 2000 survey by eBrain Market Research, a service of the Consumer Electronics Association, finds PCS owners expressing significantly greater satisfaction with their handsets than their cellular counterparts did. Some highlights of the survey are available at ebrain.org.

Satisfaction With Service Plan

	2000	1998
Satisfied	54%	76%
Neutral	30%	16%
Unsatisfied	16%	7%

Product Preferences

	Overall	18 to 34	35 to 54	Over 54
Prefer converged wireless phone/Palm PC	58%	62%	62%	50%
Prefer 2 stand-alone products	42%	39%	38%	50%