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Many, many devils in the details: 700 MHz rules

The enormous PDF of the rules came out on Friday evening last week.  There is a lot here to chew through, but some highlights leap out:

1.  Those Carterfone protections don't mean too much.  The no-locking, no-blocking requirements are hedged in by substantial limitations:  the winning licensee will be able to lock and block devices and applications as long as they can show that their actions are related to “reasonable network management and protection,” or “compliance with applicable regulatory requirements.”   In other words, as long as the discrimination can be shown to be connected (however indirectly) to some vision of “network management,” it will be permitted.  (Discrimination “solely” for discrimination's sake is prohibited, but that's not too difficult to avoid.)

Among other limitations, the license winner will be allowed to continue to use its own (non-standardized) certification standards and processes to approve uses of devices and applications on their networks, will be allowed to protect the “safety and integrity” of their networks against non-carrier applications and devices, and will be permitted to restrict use of its network to devices “compatible with [the carrier’s] network control features.” Additionally, carriers will have the ability to deny interconnection to handsets and applications that are unable to provide location-information via the carrier’s E911 system (a system that is controlled by the carrier itself). 

All of these elements will provide any incumbent carrier that wins this auction with ample slow-roll capability.  It will be very difficult for non-carrier application providers and device manufacturers to work through the incumbent’s certification processes.

2.  The “reserve price” gambit is quite astounding.  Martin's arrangement for very limited open access is accompanied by a novel escape clause:  if the license block that had been conditioned on limited no-locking, no-blocking requirements fails to sell for at least $4.6 billion, it will be re-auctioned in smaller chunks without any conditions applied.  

Commr. Copps disagrees with this “reserve price” approach, saying “[t]he procedure in this Order carries chilling risk to the success of the auction. If some of these blocks do not fetch the bid prices stipulated, perhaps because of gaming of the worst sort, they will be re-auctioned with weaker build-out requirements. If the 22 MHz block, where we hope for Carterfone open access principles, fails to elicit a $4.6 billion bid, it will be re-auctioned without Carterfone open access. In the end, all of this micro-managing virtually hands industry the pen to write the auction rules and to constrict all the opportunities this spectrum held forth. The end result could be: same old, same old. What a pity that would be!”

There are many, many devils in these details.

5 Comments

Got something to say? Feel free, I want to hear from you! Leave a Comment

  1. Anonymous says:

    As a so-called, ICANN Director (unelected and planted by Esther Dyson),
    where is your detailed analysis of the SPECTRUM shown below ?
    Where are ALL of the ICANN Director's comments on this SPECTRUM ?
    Do ICANN Directors have a clue what that SPECTRUM below is worth ?
    What if each /8 was worth $4.5billion in an auction ? Where would that
    money go ?
    240/8 Sep 81 IANA – Reserved
    241/8 Sep 81 IANA – Reserved
    242/8 Sep 81 IANA – Reserved
    243/8 Sep 81 IANA – Reserved
    244/8 Sep 81 IANA – Reserved
    245/8 Sep 81 IANA – Reserved
    246/8 Sep 81 IANA – Reserved
    247/8 Sep 81 IANA – Reserved
    248/8 Sep 81 IANA – Reserved
    249/8 Sep 81 IANA – Reserved
    250/8 Sep 81 IANA – Reserved
    251/8 Sep 81 IANA – Reserved
    252/8 Sep 81 IANA – Reserved
    253/8 Sep 81 IANA – Reserved
    254/8 Sep 81 IANA – Reserved
    255/8 Sep 81 IANA – Reserved

  2. Anonymous says:

    Are Class A blocks even that important anymore?

  3. Anonymous says:

    If you are referring to some of the blocks below, that is a very good
    question. If you are referring to /8s in general, that is even a better
    question.
    The FCC-regulated carriers would likely take the view that they plan
    to use whatever address space they please, when they need it. They
    have the clout, via a growing user base, and FCC ties to make that
    happen. They certainly are not going to run around the world to
    non-profit quango hot-tub parties to debate and trade address spaces.
    As for the non-profit quangos, they now have tens of millions of dollars
    to retire and party for the rest of their lives. All they have to do is
    continue to play out their little charades about I* governance and
    stewardship of shared resources (which now come free from the
    FCC regulated carriers).
    As for the users (and next generation ISPs), they now see the light
    (or the Vista) and realize that they can route around the entire
    fantasy, again, without spending a dime. Do you think they will be
    sending donations to the non-profit quangos ? What would motivate
    them to do that ?
    There are other more subtle issues coming down the road that impact
    the address space(s). One of the major issues is that there is a growing
    bandwidth gap between the big island (the USA) and the rest of the
    planet. It makes no sense to tie up address allocations to locations that
    one can not send broadband packets to no matter how hard you try.
    It is easier to move those users to other service platforms, such as
    SMS cell phone technology. That is being done and that will make more
    address space available when the FCC regulated carriers decide to grab
    it. There is a huge amount of wasted/unused space.
    Given some of the above, one may wonder why the non-profit quangos
    are running around claiming the sky is falling in depleted address
    allocations. One reason is that they have banked tens of millions of
    dollars selling “virgin” space. Now that people have it, and view they
    own it, they are never giving it back. They also may not see a need to
    continue paying a lease fee each year. What do they get for those fees?
    Is that protection money that makes its way to the routing mafia ?
    Back to your question about whether “Class A” address space is
    important (vs. what once was called Class E), it will be interesting to
    see how the various players below approach the coming “end game”.
    Some of the companies do not even exist any more. How do they play ?
    Also, how do they justify such large allocations ? Would they lend their
    space to an FCC-regulated carrier in return for some free connections?
    (BTW…that happens in the small ISP arenas)
    As for the users, they just want it to work, and to continue to become
    intertwined with their TV, radio and other media experiences. As they
    do that, they will find more and more FCC “partnerships” calling the
    shots. Since people are already paying for the FCC to do what they do,
    why pay again for a bunch of non-profit quangos to create a charade
    that looks like the FCC. Why also would people pay when they find
    out that the non-profits are full of clueless .NET groupies playing out
    some 60's style hippie road show, with chants about “the community”.
    Again, the FCC and the FCC regulated carriers are not going to get
    into those hot tub parties. They have a network to run.
    000/8 Sep 81 IANA – Reserved
    001/8 Sep 81 IANA – Reserved
    002/8 Sep 81 IANA – Reserved
    003/8 May 94 General Electric Company
    004/8 Dec 92 Level 3 Communications, Inc. (Updated – Apr 07)
    005/8 Jul 95 IANA – Reserved
    006/8 Feb 94 Army Information Systems Center
    007/8 Apr 95 IANA – Reserved
    008/8 Dec 92 Level 3 Communications, Inc. (Updated – Apr 07)
    009/8 Aug 92 IBM
    010/8 Jun 95 IANA – Private Use See [RFC1918]
    011/8 May 93 DoD Intel Information Systems
    012/8 Jun 95 AT&T Bell Laboratories
    013/8 Sep 91 Xerox Corporation
    014/8 Jun 91 IANA – Public Data Network
    015/8 Jul 94 Hewlett-Packard Company
    016/8 Nov 94 Digital Equipment Corporation
    017/8 Jul 92 Apple Computer Inc.
    018/8 Jan 94 MIT
    019/8 May 95 Ford Motor Company
    020/8 Oct 94 Computer Sciences Corporation
    021/8 Jul 91 DDN-RVN
    022/8 May 93 Defense Information Systems Agency
    023/8 Jul 95 IANA – Reserved
    024/8 May 01 ARIN – Cable Block (Formerly IANA – Jul 95)
    025/8 Jan 95 UK Ministry of Defense (Updated – Jan 06)
    026/8 May 95 Defense Information Systems Agency
    027/8 Apr 95 IANA – Reserved
    028/8 Jul 92 DSI-North
    029/8 Jul 91 Defense Information Systems Agency
    030/8 Jul 91 Defense Information Systems Agency
    031/8 Apr 99 IANA – Reserved
    032/8 Jun 94 AT&T Global Network Services (Updated – Aug 07)
    033/8 Jan 91 DLA Systems Automation Center
    034/8 Mar 93 Halliburton Company
    035/8 Apr 94 MERIT Computer Network
    036/8 Jul 00 IANA – Reserved (Formerly Stanford University – Apr 93)
    037/8 Apr 95 IANA – Reserved
    038/8 Sep 94 Performance Systems International
    039/8 Apr 95 IANA – Reserved
    040/8 Jun 94 Eli Lily and Company
    041/8 Apr 05 AfriNIC (whois.afrinic.net)
    042/8 Jul 95 IANA – Reserved
    043/8 Jan 91 Japan Inet
    044/8 Jul 92 Amateur Radio Digital Communications
    045/8 Jan 95 Interop Show Network
    046/8 Dec 92 IANA – Reserved (Updated – Apr 07)
    047/8 Jan 91 Bell-Northern Research
    048/8 May 95 Prudential Securities Inc.
    049/8 Mar 98 IANA – Reserved (Updated – May 07)
    050/8 Mar 98 IANA – Reserved (Updated – May 07)
    051/8 Aug 94 Deparment of Social Security of UK
    052/8 Dec 91 E.I. duPont de Nemours and Co., Inc.
    053/8 Oct 93 Cap Debis CCS
    054/8 Mar 92 Merck and Co., Inc.
    055/8 Apr 95 DoD Network Information Center (Updated – Feb 07)
    056/8 Jun 94 U.S. Postal Service
    057/8 May 95 SITA

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