[BC] PICN and FCC Rules

[Harold Hallikainen]

I'll have to read that! I had not heard about it. With my proposed
spectrum leases, there would be a smaller up front fee of maybe a year or
two of the lease payments, then annual payments. The percent of sales
approach below is interesting, but gives the government quite a bit more
discretion than a pure auction. Not sure they should have that discretion,
but I need to read what's posted.

Thanks for the info! Also, any comments on
http://sujan.hallkainen.org/ijclp ?

Harold


> On 6/13/06, Harold Hallikainen <harold at hallikainen.com> wrote:
>
>> The license is for a fixed term and specifically disclaims any right to
>> the spectrum beyone the term of the license. However the statute also
>> calls for a renewal expectancy if certain conditions are met (typically
>> "build out" on cellular systems and stuff like that). So, it's ALMOST a
>> purchase of the spectrum, but not quite. When you sell an asset, you're
>> doing "asset trading" (debit cash, credit spectrum asset) and not really
>> generating any income. However, Congress uses the cash from this asset
>> trade to "balance the budget." They can really only cover expenses with
>> income, not sale of assets. I liken it to burning your house down to
>> stay
>> warm. Eventually you're going to be cold.
>
> Have any of you been following the recent M2Z Networks proposal?
>
> M2Z is headed by John Muleta, former head of the FCC Wireless Bureau
> under both Clinton and Bush 43.   The group wants to license
> 2.155-2.175 GHz to provide "free" advertiser-supported 384 Kpbs/128
> Kpbs pornless, wireless Net access -- along with a paid 3 Mbps premium
> unfiltered service -- using OFDMA, and is asking to (gasp!) bypass the
> auction process.
>
> Instead, the U.S. Treasury would receive 5% of annual sales.  In other
> words, rather than blowing the money up-front on auction fees, it
> would go solely towards rapid network buildout, with a significant
> payback promised over the long term.    I hope they succeed (this
> could set a precedent that would benefit the small entrepreneur, as
> well as the public), but I know the big telco/cable liars -- I mean
> lobbyists -- will pull out the big guns in an attempt to kill it (in
> the same way Verizon reacted to the Wireless Philadelphia initiative.)
>
> The plan is quite ambitious: 33% of the population would receive
> service within three years and 95% would be covered in ten years.
> Here's M2Z's FCC application (124 pages, but it thoroughly explains
> the proposal):
>
> http://www.m2znetworks.com/pdf/Application.pdf
>
> More coverage here:
>
> http://wifinetnews.com/archives/006622.html
> http://www.businessweek.com/technology/content/may2006/tc20060522_430352.htm?campaign_id=rss_tech
>
> Mark
>
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