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Verizon Wireless sues FCC over 700 Mhz auction

Alfredo Padilla Published on September 13, 2007 Comment on this

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Verizon Wireless has filed a lawsuit challenging the FCC's rules for the upcoming auction of the 700 Mhz spectrum. The FCC has established rules that require one third of the spectrum be open for devices and services. These rules were the result of pressure from companies like Google that are concerned wireless carriers have too much control over the user experience on wireless devices and networks.

In a statement Verizon Wireless said the FCC's rules: "“violates the U.S. Constitution, violates the Administrative Procedures Act … and is arbitrary, capricious, unsupported by the substantial evidence and otherwise contrary to law.” Wireless spectrum in the United States is considered public property that is then leased to private companies for their use. This normally gives the FCC wide latitude regarding how the spectrum is to be used.

Google had originally requested that the FCC also require the winner of the auction resell the spectrum at wholesale prices, but this request was refused. Verizon and other wireless carriers are keen to gain access to the 700 Mhz spectrum, which is being vacated by analog TV as it moves to digital technology. The 700 Mhz spectrum is considered a "prime" sector of the wireless spectrum due to its wide reach and low infrastructure costs.

Google is one of many companies that have been concerned that wireless carriers in the United States will block their attempts to provide wireless data services. Google in particular has been aggressive about providing wireless services in an attempt to extend their extremely successful advertising program to mobile devices. In response to Verizon's lawsuit Richard Whitt, Washington telecom and media counsel for Google, said:

    “The nation's spectrum airwaves are not the birthright of any one company. They are a unique and valuable public resource that belong to all     Americans. The FCC's auction rules are designed to allow U.S. consumers—for the first time—to use their handsets with any network they         desire, and download and use the lawful software applications of their choice,”