Martin rebuffs VZW’s open access demands

FCC Chairman Kevin Martin today said he would not give in to Verizon Wireless’ demands to remove the open access requirements from the upcoming 700 MHz auction.

Testifying before a Congressional committee, Martin said the FCC originally wanted to expand the open access requirement—which would allow a customer to access the network with any device—to most of the spectrum up for auction, but decided to apply the requirement only to a portion of the block after small operators said open access would hurt their businesses. Verizon Wireless is making the same claim, saying that allowing Google or any third-party to launch a device over a network it builds over 700 MHz would negate its investment. Martin, however, told reporters after the hearing before the House Energy and Commerce Committee that the FCC would not revisit the auction rules, leaving the open access requirements for the 22 MHz block in place.

Verizon Wireless has challenged the FCC’s proposed rules in court, claiming that requiring a license-winner to open its network to all comers violates the U.S. Constitution, violates the Administrative Procedures Act and is “arbitrary and capricious.” VZW asked the U.S. Court of Appeals for the Federal circuit for an expedited ruling, but had its request turned down. Meanwhile, another likely bidder in the auction, Frontline Wireless, has requested the FCC should sanction Verizon Wireless for both lobbying the FCC and taking legal action. It asked that VZW be banned from the auction.

The auction is tentatively scheduled for January, though there has been talk of further delays. The spectrum is highly sought after from multiple types of companies each with a different end in mind for the license. Cellular providers could use the spectrum for new 3G networks or possibly WiMAX. Rural providers are attracted to 700 MHz’s propagation characteristics, which would allow for large cells and non-line-of-sight deployments. Mobile TV providers like Qualcomm are using the spectrum to launch broadcast TV services. Even Google said it is interested in the spectrum for a nationwide broadband network.

The FCC expects to raise more than $10 billion from the auction.