by Matt Stoller, Wed Jun 13, 2007 at 03:12:14 PM EDT
Guess which FCC Commissioner is holding up a universal national wireless network? It's not a Republican, it's Jonathan Adelstein, who doubts that a national wireless business will bid for spectrum.
Communications Commission member Jonathan Adelstein voiced doubts about the potential for a new national wireless broadband provider to enter the market to take on the incumbent telephone and cable broadband providers.
The Democratic commissioner said he was reluctant to structure the rules of the upcoming radio spectrum auction to encourage the entry of a new player unless there was a commitment that there would be a serious bidder at the auction.
"We don't want to set the table unless we know someone's going to come to dinner," Mr. Adelstein said.
He was speaking at a conference in Washington hosted by the Wireless Communications Association International, a lobby group for broadband service and infrastructure providers.
Speaking to reporters after his formal remarks, Mr. Adelstein said the FCC risked excluding smaller bidders from getting access to the valuable spectrum coming available for no reason if it designates a large block of it to be auctioned off but no large bidder comes forward.
A group calling itself the Coalition for 4G America has been aggressively lobbying for a 22 megahertz block of spectrum with a national license to be auctioned off. The coalition includes the likes of Google Inc., Intel Corp., EBay Inc. unit Skype Inc., and satellite television companies EchoStar Communications Corp. and DirecTV Group Inc.
It argues that such a chunk of spectrum would be necessary in order for a bidder to launch a significant challenge to the dominant cable and phone company broadband providers.
Great. So Adelstein speaks at a lobbying event for the wireless industry in favor of a position supported by incumbent telcos. I don't want to knock Adelstein, who has generally been a friend, and imply bad faith when it's not warranted. I just don't really get his position and why he's reluctant to help create genuine competition for the wireless industry. There are hundreds of billions on the line for various tech companies, so it's pretty clear there will be some business interest in this chunk of spectrum. Lobbying is fast and furious, with calls flooding into Senate Commerce Committee offices.
Meanwhile, John McCain sent a letter to the FCC as well on the 700 auction, and I'm trying to get a sense of what he means - he's calling for spectrum for public safety, which could help in terms of supporting a national wireless network, though I'm not entirely sure. So far, no other Presidential candidates aside from John Edwards and John McCain have moved on this.
Update [2007-6-16 12:21:17 by Matt Stoller]: Obsidian Wings has a useful corrective on this post.