700Mhz FCC auction delayed, new auction rules published

So, it looks like the FCC has changed its mind on the upcoming 700Mhz frequency spectrum auction again. The regulatory body has published additional auction rules, including a new auction date – set for January 24, 2008. The entire auction will still hold a reserve price of $10 billion, with the coveted open-access C-block keeping a $4.63 billion reserve price.

The open-access provisions for the 22Mhz slice of the 700Mhz spectrum are still in place, but the FCC has ruled that smaller companies will now get a discount on their bids. Companies with $15 million to $40 million in gross revenue will be getting a 15% bidding credit, while companies with gross revenues less than $15 million will get a 25% discount. The new rules include preventative measures to ensure that smaller companies do not bid on behalf of larger companies in order to get the bidding credits.

We’re glad to hear that the FCC has made it easier for smaller companies to get in on the 700Mhz action. The new rules should make for more competition and even allow smaller outfits to get their chance at a nation-wide wireless broadband network. AT&T and Verizon Wireless should be worried. Well, actually, seeing as how AT&T already acquired their high-speed spectrum from Aloha, it’s just Verizon that should be sweating.

[Via: Wireless Week]