FCC Preparing to Open More Airwaves for Auction
David Curry | | Mar 28, 2015 10:57 AM EDT |
(Photo : Reuters) The FCC might have hurt their case by not disclosing price hikes for broadband.
The U.S. Federal Communications Commission is looking into opening new airwaves for auction or temporary lease after a huge surge in spectrum prices culminated at $18.2 billion for the AWS-3 airwaves auction and $45 billion for another low-band auction.
The new proposal will allow the FCC to open the 3.5 GHz band, a lower tier spectrum capable of fast but low penetration spectrum. It's typically used by carriers and public Wi-Fi for outdoor areas where walls aren't in the way.
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President Obama pushed this bill in 2012, asking for more public hotspots and additional mobile service outdoors. The FCC has warmed to the idea, potentially allowing startups and MVNOs to acquire service of their own without the help of the four major carriers.
Internet companies like Google and Facebook have also pushed for the bill to be introduced, allowing greater access to wireless internet. The goal is to offer more internet for free in the U.S. and hopefully push more people onto the internet outdoors.
The FCC is balancing this new leasing and auction program with the next big low-band auction coming in 2016. This could be the largest auction of U.S. airwaves ever, potentially hitting over $80 billion if AT&T, T-Mobile and Dish Network are prepared to go big.
Verizon recently announced it would not participate in any future wireless auctions -- at least not with large investments -- due to having full spectrum across the U.S. to facilitate most of its customers.
Even though Verizon could make money selling the extra spectrum, it doesn't want to use any more funds in the auctions, which are continuing to skyrocket in price.
TagsFCC, 3.5GHz spectrum, airwaves auction, Wireless, public WiFi
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