FCC auction for wireless spectrum

I know a lot has been said about the FCC auction for wireless spectrum. I know some of you might be wondering why make such a big fuss about an auction. Government auctions are a dime a dozen, after all; so why so much of importance is being given to this particular auction? That’s your question; right? Well; here comes the answer.

First of all, it’s not an ordinary auction, to say the least. FCC auction for wireless spectrum is perhaps one of the biggest in terms revenue and the outcome of the auction could change the entire landscape (or should I say airscape?) of the wireless industry. The auction is likely to fetch a whopping $15 billion for the Federal Government and this alone has made so much of news in the market.

What’s up with the wireless spectrum anyway? You ask me? Well; imagine wireless spectrum as a congregation of roads. The FCC will decide who gets to use which road for transportation. Now imagine, you’d obviously love to get the biggest and the most accessible road of them all; wouldn’t you? Similarly; in the wireless spectrum, specific frequencies are allocated for specific purposes like TV, radio, cellphone, and other wireless services. In the FCC auction that we’re talking about, the frequency for cellphone operation will be auctioned. As you probably know, cellphone advertising and marketing is considered a huge industry and has the potential to rake in revenue like anything. So, if you are a carrier or a handset market, you’d love to have that huge pie of the wireless spectrum which will put you in an enviable position in the market; right? This is why the auction is being given so much of importance.

The auction is scheduled on January 24 and expectations are sky high right now. Some of the names which will take part in the auction include Google, Verizon, Vermont Telephone Company, AT&T, Guam Cellular & Paging, and hell; even an oil company, Chevron is taking part in the auction. Now can you imagine this auction’s importance? Also, FCC has strictly mentioned that it’s going to be an open access system, whereas the customer gets to choose the network and the handset he wants to use. Earlier, it was not the case - if you wanted to switch to another network, you had to change your mobile too, as different carriers supported different mobiles. With the open access system, it will no more be the case, as the customer will be able to choose the service provider and the handset he wants at his own discretion.

So, for all these reasons, the FCC auction for wireless spectrum is considered huge. It’s less than a month away and already the speculations are running wild. I have my wager on Google; what about you?

Categories: Google.

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