Auction of key airwaves begins Thursday

AUCTION OF KEY AIRWAVES BEGINS THURSDAY
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
Bidding begins on Thursday in a crucial auction of government-owned airwaves that is expected to help set the future course of the U.S. telecommunications business. Companies ranging from AT&T Inc and Verizon Wireless, to possible new competitors like Internet company Google Inc, EchoStar Communications Corp and Cablevision Systems Corp will be able to snap up some of the last remaining wireless spectrum and perhaps use it for a new generation of wireless broadband and other advanced services. "This spectrum is probably the last spectrum (to be offered) for the foreseeable future," said Tole Hart, an analyst with Gartner Group. "So it's kind of the last crack at the apple." Although the flagging economy could crimp some bidders, the FCC has high hopes for the airwaves auction. The sale is seen as a way to spur more competition in the wireless business, create a new network that can be used by public safety agencies and rake in as much as $10 billion into the federal treasury.
http://www.reuters.com/article/technologyNews/idUSN2253532620080122

* Quit fooling with wireless spectrum auction
[SOURCE: C-Net|News.com, AUTHOR: Gregory L. Rosston, Deputy Director of the Stanford Institute for Economic Policy Research ]
[Commentary] Federal Communications Commission Chairman Kevin Martin may compound his errors by changing some crucial rules after all the potential bidders decided whether to participate in the auction. If he changes the rules, it would threaten the whole FCC auction process, and possibly any government auction. FCC auctions have worked because they are fair, open, transparent and efficient. Changing the rules midstream to benefit one or two firms and shut out all competitive firms would not be any of these -- instead it would be bad for consumers and bad government. In the future firms would bet on being able to get rules changed and put even more pressure on the FCC to do so. The reputation from committing to announced rules is very important in designing markets and auctions in particular; with one bad move the FCC can tarnish its reputation.
http://www.news.com/Quit-fooling-with-wireless-spectrum-auction/2010-103...