October 24th, 2007
Verizon drop suit to change spectrum auction roles
Verizon had been very, very unhappy about the FCC’s open access rules for the upcoming 700MHz spectrum auction. In September, the wireless carrier sued the FCC to block the rules, saying vaguely that the rules “arbitrary, capricious [and] unsupported by substantial evidence.”
Today, Verizon gave up the fight, Dow Jones/AP reports.
Verizon filed a notice in the United States Court of Appeals for the District of Columbia that it was dropping its appeal. The court had previously denied a request to expedite the suit.
Ars Technica takes note of other objections to the rules for the auction, which goes forward Jan. 24, 2008.
Other companies have voiced objections to the FCC’s auction rules as well. AT&T has asked for clarification on the requirements for Block “D,” a chunk of spectrum that would be used for both commercial wireless broadband and public safety access. Frontline, which wanted to run a public/private wireless network using the spectrum, has argued that the FCC’s $1.6 billion reserve price for Block D is too high and that the auction rules would make it too easy for a big incumbent like AT&T or Verizon to snap up enough spectrum to result in “unacceptable anticompetitive effects.”
Frontline has also attempted to have Verizon barred from participating in the auction for violating the FCC’s lobbying rules, citing a September 17 meeting between Verizon, FCC Chairman Kevin Martin and some other FCC staffers. Under the FCC’s rules, companies are supposed to submit ex parte filings disclosing the nature of these meetings; Frontline called Verizon’s single-sentence filing an “arrogant violation” of the rules.
