Interesting news today on Verizon’s approach to the open access requirements associated with the 700MHz spectrum it won in the recent auction:
On Friday, Google urged the FCC to block Verizon Wireless’ $4.7 bil. successful bid for the C Block band of spectrum in the recently completed 700 MHz auction unless Verizon is forced to agree that open access rules apply to handsets it provides its own customers. Specifically, Google claims that Verizon Wireless has no intention of abiding by the open access rules governing the C block spectrum for devices it gives to its own customers and that the FCC should condition Verizon’s grant upon a clear commitment that Verizon will not exclude these handsets from the requirement.
This echoes in reality what I had said might happen in a previous post a few weeks ago:
…isn’t Google mistaken here? Is it assuming that the FCC’s open access rules go further than what Verizon Wireless had already agreed to do? The FCC’s rules are unfortunately vague, and it may be counting on a more favorable interpretation of them than Verizon is.
Google and Verizon have had conflicting opinions on the meaning of the FCC’s open access requirements - each taking the position that most clearly reflected its own views - Google’s being the most expansive interpretation possible, and Verizon’s being the most minimalist. However, in my previous post, I pointed out that even though the rules are vague, they certainly strongly suggest that Verizon will have to go beyond its existing open access project. For example:
Wireless service providers subject to this requirement will not be allowed to disable features or functionality in handsets where such action is not related to reasonable network management and protection, or compliance with applicable regulatory requirements. For example, providers may not “lock” handsets to prevent their transfer from one system to another. We also prohibit standards that block Wi-Fi access, MP3 playback ringtone capability, or other services that compete with wireless service providers’ own offerings. [emphasis mine]
At any rate, looks like we’re in for more fun and games, and more uncertainty for Verizon and its customers. Not what anyone would have wanted, and it could all have been avoided if the FCC had just been clearer about these requirements up front. Verizon can now reasonably argue that it bid based on its understanding of these rules and it’s too late to change that understanding now.




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