AT& T Changes Course on Auction
Now It Supports 'Open Access' Plan for Cellular Airwaves
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Friday, July 20, 2007; Page D03
In an unexpected policy reversal, AT&T said yesterday that it supports a proposal to require some cellular airwaves to be available to all wireless devices.
Up to this point, AT&T has fiercely attacked any "open access" requirements attached to valuable airwaves to be auctioned off by the Federal Communications Commission in January. Such mandates would require carriers to allow all services and devices to work on mobile-phone networks used to deliver e-mail, video and other content to cellphones and computers.
AT&T now supports a proposal endorsed by FCC Chairman Kevin J. Martin that would require a third of the available spectrum be open to all devices. In doing so, AT&T pits itself against Google, which says the plan does not go far enough to ensure new competition in the wireless industry.
Martin's proposal strikes a "creative balance between competing interests," James W. Cicconi, AT&T senior executive vice president for external and legislative affairs, said in a filing with the FCC. He also said the plan would force Google and other Internet companies to "put up or shut up" by testing their open access business model against the larger players.
On Wednesday, Google told Martin in a letter that it would not support any proposal that does not also require the highest bidder in January's FCC auction to wholesale capacity to carriers that allow any devices or applications to be used on their network. Google is leading a group that also includes eBay's Skype, consumer groups and wireless entrepreneurs.
Martin said he sees his plan as a way to give consumers more choices and spur innovation in the wireless industry. Google said Martin's plan is a "noble beginning" but does not promote new competition.
Before yesterday's filing, AT&T said Google's "bid-rigging approach" would discourage the largest companies, including Verizon Wireless, from participating in the auction, devaluing the spectrum that is supposed to bring in more than $15 billion in revenue.
