Last spring, the Federal Communications Commission held its highly publicized 700MHz auction, the sell-off of the slice of the electromagnetic spectrum that analog television signals will no longer be using as of next February. The auction raised nearly $20 billion for government coffers, and was generally considered to be a rousing success.
The only piece of the 700MHz spectrum that did not sell was the so-called “D Block,” a narrow frequency range reserved by the FCC for the development and implementation of a national emergency-responder network.
In an effort to revive interest in the spectrum, the FCC announced that it is seeking public comment on a new set of rules governing the purchase and use of the spectrum. The most significant change is the minimum bid, which the FCC reduced from $1.3 billion to $750 million for a national license.
In addition, if no single entity bids on the D Block, the new rules propose dividing the spectrum segment into 58 separate regions, which would further lessen the investment required for a company to participate. The time limit for rolling out the network was also extended from 10 to 15 years.
Public/Private Partnership
The FCC’s concept for the D Block is that a private company will build a national emergency-communications network that will ensure that police, fire and other first responders can talk to each other. Incompatible communications devices and conflicting networks were a serious problem during the response to the terrorist attacks on 9/11.
In exchange for building the network, the private company (or companies) would earn revenues by charging emergency responders for use of the network and selling wireless access to the spectrum to commercial accounts, as well.
“Let us be clear about what is at stake,” FCC Chairman Kevin Martin said. “Without the partnership, there are no other viable tools for the commission to…