Most on FCC back open-access rule

WASHINGTON — A majority of the Federal Communications Commission (FCC) members told a House subcommittee Tuesday that they support an "open-access" requirement on one swath of airwaves that will be auctioned early next year.

The provision, put forth by FCC Chairman Kevin Martin, would allow cellphone customers to use any device they would like on a new network encompassing about one-third of the 60 megahertz of spectrum to be auctioned.

"Consumers would be able to use the wireless device of their choice and download whatever software they want," Martin told the panel.

The provision drew support from Democrats on the House Energy and Commerce Committee's subcommittee on telecommunications and the Internet, and resistance from most of the panel's Republicans.

A broader open-access provision, however, supported by Google and public-interest groups, received limited support from the commission's two Democrats and opposition from Martin.

Tuesday's hearing was Martin's first opportunity to speak publicly about the rules that will govern the so-called "700 megahertz" auction.

The highly coveted spectrum is being made available thanks to the digital-television transition. It is considered especially valuable. Signals that utilize it can travel long distances and easily penetrate walls.

The FCC's two Democrats supported Martin's limited open-access provision while Martin's fellow Republicans said they are undecided.

"I know you want me to have an answer, but at this point I really don't," commission member Deborah Taylor Tate said in response to a question about the provision from Chairman Edward Markey, D-Mass.

Commissioner Robert McDowell said he is "considering all the arguments."

Republicans on the panel generally sided with the wireless industry's position that special rules on the spectrum are not needed.

"I see it as a gamble," Rep. Fred Upton, R-Mich., said of adding the conditions. "Successful auctions work best without encumbrances."

The concern is that special rules placed on the spectrum might discourage companies from bidding, thus lowering the proceeds that go to the U.S. Treasury.

The auction has yet to be scheduled, but by law it must take place by Jan. 28, 2008. The commission could vote on the rules as early as next week.

The special open-access provisions apply to 22 megahertz of the 60 megahertz that will be auctioned. If the commission approves, the licenses must attract a minimum $4.6 billion bid. If the minimum is not met, the conditions are stripped and the spectrum is re-auctioned.

The minimum bid for the entire auction is $10 billion, Martin said. The auction is expected to raise as much as $15 billion for the U.S. Treasury, with some estimates as high as $20 billion.