WASHINGTON (Reuters) - Verizon Wireless has asked a federal court to overturn open-ac

[j__1]

WASHINGTON (Reuters) - Verizon Wireless has asked a federal court to overturn open-access rules that the U.S. Federal Communications Commission is imposing on the winner of valuable wireless airwaves to be auctioned this winter.

In a lawsuit filed on Monday, Verizon Wireless asked the U.S. Court of the Appeals for the District of Columbia to strike down the FCC conditions, which would require the winner of the new spectrum to let consumers connect using any device or software.

The January 16, 2008 auction is expected to raise at least $10 billion for the U.S. government from airwaves being returned by television broadcasters as they move to digital from analog signals in early 2009. The airwaves to be sold in the 700-megahertz band can travel long distances and penetrate thick walls.

Verizon Wireless argued that the open-access conditions are unconstitutional, and the FCC overstepped its authority when it approved them on July 31.

Verizon Wireless is owned by Verizon Communications Inc (VZ.N) and Vodafone Group Plc (VOD.L).

The auction is widely seen as a last opportunity for a new player to enter the wireless market.

Currently, wireless carriers restrict the models of cell phones that can be used on their networks. They also limit the software that can be downloaded onto them, such as ring tones, music or Web browser software.

The open-access rules have the support of Google Inc(GOOG.O), a potential bidder in the auction. They also have been endorsed by many consumer advocates, who say it is needed to spur competition in the wireless business.
(Reporting by Peter Kaplan)

[greenblood]

"Sir Charge" is charging FCC

[Nwahs]

Hmmmm, why didn't T-mobile wait until this auction and get the awesome 700Mhz spectrum? Sounds like if Verizon goes all out and starts using 700Mhz with CDMA their service is going to be the best around.

[kinjutsu11]

What i'm worried about is Metro buying out Leap wireless to become the 5th national carrier, and then participating in this auction. Although, with the $5.5 Billion they offered, i'm not sure how much money they would have left. Still worries me though, and did you all hear about Apple potentially getting in the game? Sure as hell gonna be interesting....

[j__1]

Personally, I think Verizon has a point... the FCC has more than pushed its boundaries.

The FCC defined the mess we have today... and whenever they've attempted to fix past mistakes, they've made things worse. They can't start pretending they understand the unintended consequences of their action... past or present. We certainly don't need more rules and regulations... typically, in the end, all they do is protect the incumbents. Greenblood's road to hell (lack of 3G or better) is paved in the FCC's good intentions.

If they are truly doing this for "the people", how about they break off a small slice and give it to "the people"? And I'm not talking about low-power, either.... I'm saying anything goes. THAT will stimulate innovation and drive prices down. We don’t necessarily require the FCC to protect us from interference… there’s more than one way to skin a cat.

P.S. Whoops... my bad, the FCC is doing all of this for "the consumers". :)

[j__1]

... and did you all hear about Apple potentially getting in the game? Sure as hell gonna be interesting....I highly doubt Apple would get into the mix... I think the analysts are just grasping at straws....or Apple is screwing with the telecoms to drive their costs up.

Jobs has been clear about his thoughts on a MVNO... why buy the cow when they'll pay you to drink the milk?

[j__1]

What i'm worried about is Metro buying out Leap wireless to become the 5th national carrier, and then participating in this auction. Although, with the $5.5 Billion they offered, i'm not sure how much money they would have left. There's plenty of private equity around... especially when you take into account cash flow and margin in the industry. Thanks to the FCC, prices are artifically inflated.

I wouldn't leave Alltel out of the mix either.

[kinjutsu11]

I highly doubt Apple would get into the mix... I think the analysts are just grasping at straws....or Apple is screwing with the telecoms to drive their costs up.

Jobs has been clear about his thoughts on a MVNO... why buy the cow when they'll pay you to drink the milk?

Yea thats true, but Jobs said the same thing about getting into the phone industry and now we have iPhone. It's unlikely, but the possibility is still there

There's plenty of private equity around... especially when you take into account cash flow and margin in the industry. Thanks to the FCC, prices are artifically inflated.

I wouldn't leave Alltel out of the mix either.

Alltel could do something, i'm not sure if Goldman Sachs will participate since they bought them out. But that does give them a huge financial backing. The money i was talking about was Metro, they spent a significant amount last year, are trying to buy out Leap, if they accept, so i don't think they in particular would have enough cash flow. And the FCC is dumb, they always screw up, and then harder, i agree 100%. But you've gotta admit, their efforts in creating a more open playing field is a step in the right direction, albeit waaaay too late.

[greenblood]

I bet this 700 spectrum will be $20 billion
not 20 dollars
not 20 thousands
not 20 millions
everybody is hyperhyped by how superior 700 is
but can 700 travel from New York all the way to Hong Kong (1/2 globe)???

[j__1]

Yea thats true, but Jobs said the same thing about getting into the phone industry and now we have iPhone.Yea, but who bought that? The iPhone was the worst kept 'secret' Apple has ever had... or rather, one of the most sucessful product launches ever. They planted the seed, put on a front that the world was flat, and let their frothing fanatics blaze the trail.


The money i was talking about was Metro, they spent a significant amount last year, are trying to buy out Leap, if they accept, so i don't think they in particular would have enough cash flow.
We're talking about the same thing. Considering the fact that T-Mobile is fighting hard to abandon Metro's demographic, there is a big hole in terms of a national player focused on low cost service. I don't think Metro.. .or some sort of partnership, would have any challenge raising captital. Their model allows them to play for keeps.

And the FCC is dumb, they always screw up, and then harder, i agree 100%. But you've gotta admit, their efforts in creating a more open playing field is a step in the right direction, albeit waaaay too late.Kinda like when some blocks were set aside for miniorities... so Stanton hooked up with Alaskan Indians (Cook Inlet)? If we agree they're dumb... why do you trust that their current effort will not do more harm than good? The FCC will never be as crafty as the players... and that doesn't even get into conflict of interest challenges (e.g., politicians taking money to get reelected; 'expert advice').


I think Apple's play has already changed the marketplace... IMO, the iPhone is a catalyst. And it already allows me to run any software I can compile on it… And thanks to our open source friends… well, where do you start? The point is, many others are taking notice... and on top of that, the carriers are coming under attack from all sides about their business practices. The locking of the iPhone to at&t is a great example… visible to all.


My concern is that 700Mhz "open access" will prove to be a distraction that the carriers will use to drive higher prices and provide lower quality tiered services... similar to the Net Neutrality crud. Personally, I’ve been looking forward to the carriers becoming a dumb pipe... at whatever price the market will bear. Do you think it isn't already heading down this path?


I put as much faith/trust in the FCC as I do the EPA. .. in case of the latter, they don’t protect the environment, they give others permits to pollute my property! If that’s not a violation of my constitutional rights, I don’t know what is.

[j__1]

WARNING: Off-topic

The locking of the iPhone to at&t is a great example… visible to all.

They must all hate Jobs with a fury... he has positioned Apple as 'fighting' for the consumer. Of course, Apple is a hardware company, so whatever sells more hardware is fine by him. I sure love my 500+ DVD AppleTV jukebox... it just works.;)