Verizon files Federal Case papers against FCC 700MHz auction
It should come as no shock the wireless carriers are upset over the idea of open network access for consumers, but who knew they would make a federal case out of it?
RCRWireless broke the story yesterday that Verizon is going after the FCC for their upcoming 700MHz spectrum auction. In their court filings, Verizon claims the auction “violates the U.S. Constitution, violates the Administrative Procedures Act … and is arbitrary, capricious, unsupported by the substantial evidence and otherwise contrary to law.”
The problems stem from the FCC attaching open-access requirements to a 1/3rd of the band spectrum. Anyone who wins licenses inside that portion must allow any device to connect to the network, so long as the connection does not do harm to the network. It seemed all the wireless carriers were opposed to this plan until AT&T flipped sides and endorsed the FCC’s plan.
Verizon, currently the second largest carrier in the nation, has decided to take the issue to court, potentially tying up the auction for months, if not years, while it is sorted out.
The wireless carriers stand to lose millions under the FCC’s plan as anyone would be able to connect to the network and watch their content, but the consumers would gain those millions back in not paying monthly subscription fees for various extras.
Google, Frontline Wireless, Skype and more all back the plan as ways to help consumers and spur invention. Those same groups have much to say over the lawsuit while Verizon and FCC stay mum on the topic.
“The nation’s spectrum airwaves are not the birthright of any one company. They are a unique and valuable public resource that belongs to all Americans. The FCC’s auction rules are designed to allow U.S. consumers—for the first time—to use their handsets with any network they desire, and download and use the lawful software applications of their choice. It’s regrettable that Verizon has decided to use the court system to try to prevent consumers from having any choice of innovative services. Once again, it is American consumers who lose from these tactics.” – Richard Witt, telecom and media counsel for Google
Frontline Wireless also had a statement on the suit.
“Verizon’s lawsuit throws a wrench into the auction to promote competition and innovation for consumers through open access and give public safety an interoperable, national network. Verizon is challenging the FCC for doing what Congress required it to do in the first place—ensure that auction policy is guided solely by the public interest,” adding that it was ironic that Verizon, “would file this challenge because, under anti-trust precedent, it would not be able to hold this spectrum.”
All of this may be null-and-void if the auction does not reach the target of $4.6 billion. A failure to reach that price would negate the open-access stipulation, but with Verizon’s lawsuit, it seems clear they think the auction will make it there.
This could now be a very long road while the constitutional aspects are sorted out.
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