D Block auction: Wait til next year?

Aug 1, 2008 12:00 PM, By Donny Jackson

AT&T, Verizon recommend that the PSST selects partners through RFP process

FCC commissioners are sorting through myriad recommendations to change the commission's public/private partnership strategy as they try to establish rules for a D Block reauction that seems increasingly likely to occur sometime in 2009.

In reply comments sent to the commission by July 7, most agreed that a public/private partnership is still the best option for creating a 700 MHz nationwide broadband network for first responders, but a variety of opinions were given regarding the technical needs and structure of the arrangement.

In its comments, the Public Safety Spectrum Trust (PSST) — licensee for public safety's 10 MHz of broadband spectrum in the 700 MHz band — reduced its 10-year coverage goal for the network from 99.3% of the U.S. population to 98% (see maps). With such a change, the PSST estimates the commercial partner would save $1.4 billion in capital expenditures because 3800 fewer tower sites would be needed.

In addition, the PSST proposed that public-safety users would receive priority access on no more than 70% of the network's capacity — during the last auction, it could have been 100% — and largely has abandoned the MVNO role for itself that reportedly troubled many potential bidders.

But telecom giant Verizon stated in its filing that the D Block auction concept is “fundamentally — and fatally — flawed,” noting that a commercial operator cannot expect a return on its investment to justify the $20 billion in incremental costs that would come with making the network suitable for public safety.

With this in mind, Verizon and AT&T recommended that the public-safety broadband licensee — currently the PSST — should be allowed to select commercial partners through a request-for-proposal (RFP) process.

PSST Chairman and CEO Harlin McEwen said an RFP concept could be acceptable but said it is not an option that the FCC can consider. The FCC is required by law to auction the D Block spectrum, and Congress almost certainly would not pass a law allowing an RFP, especially with its membership focused on the upcoming November elections.

“I don't expect Congress will be functional for another year,” McEwen said.