Hi-tech sees win in FCC auction draft rules

updated 1:39 p.m. ET July 11, 2007

WASHINGTON - The hi-tech industry, led by Google Inc., scored a big victory over incumbent broadband providers this week as draft rules released by FCC Chairman Kevin Martin for a highly anticipated radio-spectrum auction have incorporated many of the hi-tech industry's demands.

According to a Federal Communications Commission official, who has seen the rules — which will be released shortly by Martin's office to the other four commissioners at the agency — the auction of 22 megahertz of spectrum, out of a total 60 megahertz, will have conditions attached to it which may pave the way for Google to acquire spectrum for the first time and would enable the company to begin competing with the large incumbent providers of broadband service to customers and businesses.

The rules will determine how the auction of radio spectrum to commercial wireless broadband operators, which, according to an official estimate, could raise as much as $20 billion, will proceed early next year.

In order to provide wireless broadband or cellular service, companies need spectrum, which allows them to carry their signals without the need to be connected by a wired network.

Companies like Google have been strongly advocating rules that would force the winner of a large chunk of spectrum to allow end-users and vendors the ability to attach any device or application to that spectrum.

Such a rule threatens to challenge the hegemony of incumbent providers of broadband service, such as AT&T Inc. and Verizon Wireless, a joint venture between Verizon Communications Inc. and the U.K.'s Vodafone PLC, and cable companies such as Comcast Corp and Time Warner Cable.

These companies, and particularly Verizon Wireless, have fiercely resisted the notion that having invested in the construction of a broadband network, they would have to cede control over the types of devices or applications that are used on it.

According to the FCC official, who would only speak on the condition of anonymity because the rules haven't been released to the other four commissioners for their consideration, Google and the other hi-tech companies may have their way, as a large chunk of spectrum is to be auctioned off with so-called open access requirements attached.

Open access means that the licensee of the spectrum would have less say over the type of handsets providers of broadband service could sell to their customers and what types of broadband service could be offered by those providers.

The open-access requirement would be attached to two blocks of spectrum that are each 11 megahertz in size. They could be pieced together to effectively form a national license.

Don't miss this on MSNBC.com Pass it on: Sons of infertile men may be next The eight biggest Olympic marketing debacles Reality show judges range from wise to wacko Cosmic Log: Is this your jetpack? Forget your inhibitions: World's sexiest islands

MORE FROM TECH AND GADGETS

Tech and gadgets Section Front

Newsweek: Can Apple avoid mistakes of the '90s? Microsoft brings more Web data to Bing results Britons among 'ugliest people,' dating site says Some schools shun Kindle, saying blind can't use it Travelers can keep eye on home remotely Facebook hit by ‘Control Your Info’ intruder Twitter phishing ploy goes for ‘Direct Messages’ Apple doesn’t seem to like mixing apps, politics New device takes gorilla's blood pressure LinkedIn and Twitter link up Tech and gadgets Section Front   Add Tech and gadgets headlines to your news reader: