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March 24, 2008, Alert No. 1,735.
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FCC Releases Details of 700 MHz Auction

3/21. The Federal Communications Commission (FCC) released details regarding the winning bidders in Auction 73, which is also known as the 700 MHz auction.

Verizon Wireless (VW) and AT&T dominated the winning bids. AT&T's winning bids totaled over $6 Billion. VW's winning bids totaled more than $9 Billion. All bids totaled over $19 Billion. However, T-Mobile and Sprint-Nextel acquired spectrum in Auction 66 in 2006, which is also known as the AWS-1 auction.

See, FCC Public Notice [11 pages in PDF] (DA 08-595) and Attachment A [74 pages in PDF] titled "Winning Bids". See also, Attachment B [7 pages in PDF] titled "Bidder/Payment Refund", Attachment C [2 pages in PDF] titled "Withdrawal/Payment", and Attachment D [18 pages in PDF] titled "Instructions for Completing FCC Form 601 and Form 602".

FCC Chairman Kevin Martin stated in a release [PDF] that "A bidder other than a nationwide incumbent won a license in every market. As a result of the 700 MHz Auction, there is the potential for an additional wireless `third-pipe´´ in every market across the nation. Additionally, 99 bidders, other than the nationwide wireless incumbents, won 754 licenses -- representing approximately 69 percent of the 1090 licenses sold in the 700 MHz auction. The Auction therefore drew wide-ranging interest from a number of new players."

For example, wrote Martin, "Frontier Wireless LLC (EchoStar), which is widely viewed as a new entrant, won 168 licenses in the E block to establish a near nationwide footprint for its services for consumers."

The E Block is 6 MHz of unpaired spectrum (722-728). It was auctioned by Economic Areas (EA) in 176 licenses. The winning bids totaled $1.27 Billion.

Commissioner Jonathan Adelstein stated in a release [PDF] that "It's appalling that women and minorities were virtually shut out of this monumental auction. It's an outrage that we've failed to counter the legacy of discrimination that has kept women and minorities from owning their fair share of the spectrum. Here we had an enormous opportunity to open the airwaves to a new generation that reflects the diversity of America, and instead we just made a bad situation even worse. This gives whole new meaning to ``white spaces´´ in the spectrum."

See also, story titled "FCC Closes 700 MHz Auction" in TLJ Daily E-Mail Alert No. 1,734, March 20, 2008.

C Block. Google was not the winning bidder for any spectrum license in the just closed auction. However, its lobbying efforts were effective in causing the FCC to impose some of the restrictions that it sought, for one spectrum block, the C Block.

The C Block is 22 MHz of paired spectrum (746-757 and 776-787), auctioned by Regional Economic Area Groupings (REAGs) in 12 licenses, subject to open devices and applications requirements (ODAR).

Google's Richard Whitt stated in a release that "Google didn't pick up any spectrum licenses". But, it looks forward "to a more open wireless world. As a result of the auction, consumers whose devices use the C-block of spectrum soon will be able to use any wireless device they wish, and download to their devices any applications and content they wish. Consumers soon should begin enjoying new, Internet-like freedom to get the most out of their mobile phones and other wireless devices."

Verizon Wireless stated in a release that "We are very pleased with our auction results. Specifically, we were successful in achieving the spectrum depth we need to continue to grow our business and data revenues, to preserve our reputation as the nation's most reliable wireless network, and to continue to lead in data services and help us satisfy the next wave of services and consumer electronics devices."

It added that "The bids we won include a nationwide spectrum footprint covering 298M Pops, plus 102 licenses for individual markets covering 171M Pops."

Gigi Sohn, head of the Public Knowledge, stated in a release that "It was no surprise that Verizon paid more than $4.7 billion for a national block of spectrum in the most valuable band. From what we have seen, the company has started a process to comply with the open access parts of the FCC order that have the potential to bring many benefits to consumers through more flexibility in using their own handsets and other devices and the use of applications other than those supplied by Verizon. We look forward to hearing more details about how Verizon implements its program, and we hope the rest of the industry will adopt a similar view to giving consumers more choice."

Public Knowledge's public advocacy on this and some other issues coincides with the commercial interests of Google.

Sohn added that "We are grateful to Google for stepping up and making certain the minimum bid in the ``C´´ block was achieved, so that the open access provisions would be required to be followed."

She added that "At the same time, however, it is disappointing that new competitors and innovators won’t have access to the spectrum to give consumers the benefits of real broadband competition."

FCC Will Not Offer D Block in Auction 76

3/21. The Federal Communications Commission (FCC) adopted and released an order [2 pages in PDF] that announces that "we decide not to re-offer the D Block license ... immediately in Auction 76 – the contingent, subsequent auction to Auction 73." See also, FCC release.

The D Block is 10 MHz of paired spectrum (758-763 and 788-793). It was to have been auctioned as one nationwide license, and subject to a Public/Private Partnership. That is, the plan was for a commercial licensee to build a nationwide broadband interoperable network for use by public safety entities. It would then have preemptible secondary access to the spectrum. However, no bidder bid the reserve price.

The FCC's order elaborates that "Because the aggregate reserve price for the D Block was not met, there is no winning bidder for that license. Given that the reserve price was met for all other blocks, we find it is in the public interest to provide additional time to consider all options with respect to the D Block spectrum. Therefore, we elect not to re-offer the D Block license immediately in Auction 76."

FCC Commissioner Michael Copps stated in a release [PDF] that "America's first responders still need a national, interoperable wireless broadband network. ... Now we have another chance to build the network that public safety and the American public need. I remain committed to working with my colleagues to succeed in this most important task."

Commissioner Jonathan Adelstein stated in a release [PDF] that "this Order represents a hopeful effort to get back on track." He wrote that "I still believe we can make it work", but that the FCC "failed to make it viable" in the just closed auction.

Jonathan AdelsteinAdelstein (at right) wrote that "A true public-private partnership must meet the needs of both partners. If the needs of public safety are not met, the basic objective is not met. If the needs of the private partner for a return on capital and regulatory certainty are not met, then that partner will not be in a position to attract the capital necessary to meet public safety's objectives."

Gigi Sohn, head of the Public Knowledge, stated in a release that "We are pleased the Commission has decided to separate the D block from the rest of the auction and will not re-auction the spectrum quickly while also examining why the reserve price was not met in an otherwise successful auction. We hope the Commission will take the time to take a wide-ranging view of how the spectrum could be used and on what terms and conditions. Perhaps the D block could be made available to innovators on a wholesale basis as the C block was not."

This order is FCC 08-91 in AU Docket No. 07-157. See also, story titled "FCC Closes 700 MHz Auction" in TLJ Daily E-Mail Alert No. 1,734, March 20, 2008.

EPIC Files FOIA Complaint Against FTC

3/14. The Electronic Privacy Information Center (EPIC) filed a complaint [PDF] in U.S. District Court (DC) against the Federal Trade Commission (FTC) alleging violation of the Freedom of Information Act (FOIA), which is codified at 5 U.S.C. § 552, in connection with its failure to respond to a FOIA request for records.

The EPIC seeks records related to the law firm of Jones Day's representation of DoubleClick, and whether this warranted recusal by FTC Chairman Deborah Majoras in the FTC's Google DoubleClick merger proceeding. The EPIC opposed the merger. The FTC approved the merger in December of 2007. Chairman Majoras participated in that decision. See, story titled "FTC Will Not Block Google DoubleClick Merger" in TLJ Daily E-Mail Alert No. 1,691, December 19, 2007.

The complaint states that the FTC failed to make a determination regarding the EPIC's FOIA request [10 pages in PDF] within the time period required by the FOIA, and that the FTC then failed to make a determination regarding the EPIC's administrative appeal [17 pages in PDF] within the statutory time period.

The complaint requests that the District Court find that the FTC has violated the FOIA, and order the FTC "to produce all responsive agency records within ten business days".

The EPIC previously requested that FTC Chairman Majoras be recused. See, story titled "EPIC Seeks Recusal of Majoras in Google Doubleclick Merger Review" in TLJ Daily E-Mail Alert No. 1,688, December 13, 2007.

The EPIC wrote in a December 12 filing [PDF] with the FTC that DoubleClick "has retained the Washington law firm of Jones Day to represent the company before the Federal Trade Commission in the pending merger review." It added that Deborah Majoras "is a former equity partner of the law firm Jones Day" and that her husband, John Majoras, "is currently an equity partner with the law firm Jones Day".

See also, story titled "EPIC Pursues FTC for Records Related to Majoras's Alleged Conflict of Interest" in TLJ Daily E-Mail Alert No. 1,718, February 14, 2008.

FTC Obtains $2.9 Million Fine Against Spammer

3/13. The Federal Trade Commission (FTC) filed a complaint [18 pages in PDF] in U.S. District Court (CDCal) against ValueClick and others alleging violation of Section 5(a) of the FTC Act and the CAN-SPAM Act in connection with the sending of fraudulent e-mail messages. The parties simultaneously filed a settlement agreement that provides for a $2.9 Million fine. See also, FTC release.

The complaint alleges that ValueClick and affiliated companies sent e-mail messages that falsely asserted that the recipient had won iPods, plasma televisions, or other prizes, when in fact the items were not free prizes. The complaint also alleges that defendants misrepresented that they secured customers' sensitive financial information.

The complaint alleges three counts of violation of the FTC Act, which is codified at 15 U.S.C. § 45(a). It also alleges one count of violation of the federal anti-spam statute, which is codified at 15 U.S.C. § 7701 et seq.

The FTC and the defendants simultaneously entered into a settlement agreement [22 pages in PDF] that provides that ValueClick and Hi-Speed Media are ordered to stop lying about products being free, and to stop violating the CAN-SPAM Act. It also provides for a fine of $2.9 Million. The settlement agreement also requires compliance monitoring, audits and assessments, record keeping, compliance reporting, and securing of consumers' sensitive financial information.

This case is U.S.A. v. ValueClick, Inc., Hi-Speed Media, Inc. and E-Babylon, Inc., U.S. District Court for the Central District of California, D.C. No. CV08-01711 MMM RZx.

DOJ Will Not Challenge XM Sirius Merger

3/24. The Department of Justice's (DOJ) Antitrust Division announced that it will not challenge the merger of XM and Sirius. It stated in a release that "the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers".

Washington Tech Calendar
New items are highlighted in red.
Monday, March 24

The House will not meet.

The Senate will not meet.

Deadline to submit to the U.S. Patent and Trademark Office (USPTO) nominations of individuals to serve on the USPTO's National Medal of Technology and Innovation Nomination Evaluation Committee. See, notice in the Federal Register, January 24, 2008, Vol. 73, No. 16, at Page 4182.

Deadline to submit reply comments to the Copyright Office (CO) regarding its proposed rules changes regarding the recordation of notices of termination and related matters. The CO stated that these proposed changes "would communicate the Office's practices as to notices of termination that are untimely filed; clarify the fact that a notice of termination is not legally sufficient simply because it has been recorded; update the legibility requirements for all recorded documents, including notices of termination; make minor explanatory edits to the fee schedule for multiple titles within a document (adding notices of termination as an example); and create a new mailing address to which notices of termination should be sent." See, notice in the Federal Register, January 23, 2008, Vol. 73, No.15, at Pages 3898-3900.

EXTENDED TO APRIL 7. Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding pole attachments and 47 U.S.C. § 224. The FCC adopted this NPRM on October 31, 2007, and released the text [40 pages in PDF] on November 20, 2007. This NPRM is FCC 07-187 in WC Docket No. 07-245. See, notice in the Federal Register, February 6, 2008, Vol. 73, No. 25, at Pages 6879-6888, and story titled "FCC Sets Comments Deadlines for Pole Attachments NPRM" in TLJ Daily E-Mail Alert No. 1,714, February 8, 2008. See, notice of extension in the Federal Register, February 12, 2008, Vol. 73, No. 29, at Page 8028.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) in its proceeding titled "In the Matter of Petition to Establish Procedural Requirements to Govern Proceedings for Forbearance Under Section 10 of the Communications Act of 1934, as Amended". The FCC adopted this NPRM on November 27, 2007, and released the text [25 pages in PDF] on November 30, 2007. This item is FCC 07-202 in WC Docket No. 07-267. See, notice in the Federal Register, February 6, 2008, Vol. 73, No. 25, at Pages 6888-6895, and story titled "FCC Sets Comments Deadlines for Forbearance NPRM" in TLJ Daily E-Mail Alert No. 1,714, February 8, 2008.

Tuesday, March 25

The House will not meet.

The Senate will not meet.

8:00 - 10:00 AM. The Federal Communications Bar Association (FCBA) will host a breakfast and tour of the Newseum. Prices vary. See, registration form [PDF]. Registrations and cancellations are due by 5:00 PM on March 17. Location: 555 Pennsylvania Ave., NW.

12:00 NOON - 2:00 PM. The Federal Communications Bar Association's (FCBA) FCC Enforcement and International Telecommunications Practice Committees will host a brown bag lunch titled "Birds, Back-up Power and RF Safety: New Challenges in Antenna and Cell Site Compliance and Enforcement". The speakers will be Jeff Steinberg (FCC's Wireless Bureau), Bob Curtis (RF Check), and Christopher Guttman-McCabe (CTIA). For more information, contact Julia Pontecorvo at jpontecorvo at harriswiltshire dot com. Location: Verizon, Suite 400 West, 5th floor, 1300 I St., NW.

1:00 - 4:00 PM. The Architectural and Transportation Barriers Compliance Board's (ATBCB) Telecommunications and Electronic and Information Technology Advisory Committee (TEITAC) will meet by conference call. See, notice in the Federal Register, January 24, 2008, Vol. 73, No. 16, at Page 4132.

Wednesday, March 26

The House will not meet.

The Senate will not meet.

12:15 - 1:30 PM. The Federal Communications Bar Association's (FCBA) HLS/Emergency Communications Committee will host a brown bag lunch titled "The 700 MHz D-block Auction: Where Do We Go From Here?" The speakers will be Jessica Zufolo (Medley Global Advisors). Location: Wilmer Hale, 1875 Pennsylvania Ave., NW.

6:30 - 8:00 PM. The Federal Communications Bar Association's (FCBA) Young Lawyers Committee will host an event titled "Happy Hour". For more information, contact: Stefanie Zalewski at sazalewski at mintz dot com, Chris Bjornson at crbjornson at mintz dot com, Angela Collins at afcollins at mintz dot com, Tarah Grant at tsgrant at hhlaw dot com. Location: Bar Louie, 701 7th St., NW.

Day one of a three day conference of the ABA Section of Antitrust Law. See, conference web site and brochure [3 MB in PDF]. Locations: JW Marriott Hotel and National Press Club.

Deadline to submit reply comments to the Copyright Office (CO) in response to its Notice of Inquiry (NOI) regarding the meaning of the Copyright Act's term "cable system", and issues related to the phantom signal phenomenon. See, notice in the Federal Register, December 12, 2007, Vol. 72, No. 238, at Pages 70529-70540, and story titled "Copyright Office Issues Notice of Inquiry Regarding Cable Systems" in TLJ Daily E-Mail Alert No. 1,688, December 13, 2007.

Thursday, March 27

The House will not meet.

The Senate will not meet.

Day two of a three day conference of the ABA Section of Antitrust Law. See, conference web site and brochure [3 MB in PDF]. Locations: JW Marriott Hotel and National Press Club.

Friday, March 28

The House will not meet.

The Senate will not meet.

12:00 NOON - 2:00 PM. The Federal Communications Bar Association's (FCBA) Judicial Practice Committee will host a brown bag lunch titled "Meet the New FCC General Counsel". The speaker will be Matthew Berry (General Counsel of the Federal Communications Commission). Location: Wiley Rein, 1776 K St., NW.

Day three of a three day conference of the ABA Section of Antitrust Law. See, conference web site and brochure [3 MB in PDF]. Locations: JW Marriott Hotel and National Press Club.

Monday, March 31

The House will return from its two week March recess. Votes will be postponed at least until 6:30 PM. See, Rep. Hoyer's 2008 calendar [4.25 MB PDF].

The Senate will return from its March recess. See, Senate 2008 calendar.

12:15 - 1:30 PM. The Federal Communications Bar Association's (FCBA) Young Lawyers Committee will host a brown bag lunch titled "The Role of In-House Counsel". The speakers will be Anna Gomez (VP for Government Affairs of Sprint Nextel), Byron Marchant (EVP/GC of BET Networks), Tom Nathan (SVP and Deputy GC of Comcast Cable Communications), and Mike Plantamura (VP/GC of Radio One). RSVP to Micah Caldwell at mcaldwell at fh-law dot com. For more information, contact Micah Caldwell, Chris Fedeli at chrisfedeli at dwt dot com or Tarah Grant at tsgrant at hhlaw dot com). Location: Davis Wright Tremaine, 2nd floor, 1919 Pennsylvania Ave., NW.

TIME? The Information Technology Association of America (ITAA) will host an event titled "Beyond the Beltway 2008: State & Local Government IT Market Watch". See, notice. For more information, contact Michael Kerr at mkerr at itaa dot org or 703-284-5324. Location: The Ritz-Carlton, Tysons Corner, VA.

The Office of the US Trade Representative (OUSTR) is scheduled to conclude it review of compliance with telecommunications trade agreements. See, notice in the Federal Register, November 19, 2007, Vol. 72, No. 222, at Pages 65109-65111.

Effective date of the Department of Homeland Security (DHS) REAL ID Act regulations. The DHS released its REAL ID Act rules on January 11, 2008. The DHS published its notice in the Federal Register announcing, describing, and reciting these rules on January 29, 2008. See, Federal Register, January 29, 2008, Vol. 73, No. 19, at Pages 5271-5340. See also, story titled "DHS Releases REAL ID Regulations" in TLJ Daily E-Mail Alert No. 1,699, January 14, 2008.

First of three deadlines for the Federal Communications Commission (FCC) and National Telecommunications and Information Administration (NTIA) to comply with the request of Rep. John Dingell (D-MI), Chairman of the House Commerce Committee (HCC), and Rep. Ed Markey (D-MA), Chairman of the HCC's Subcommittee on Telecommunications and the Internet, for a series of three written status reports on whether the FCC and NTIA anticipate that additional funds will be needed for the DTV transition converter box coupon program. See, March 5, 2008, letter [3 pages in PDF].

People and Appointments

3/24. The Federal Communications Commission's (FCC) Universal Service Administrative Company (USAC) announced that it seeks nominations for two positions on its Board of Directors. One position is to be filled by a representative for competitive local exchange carriers (CLECs). The other is to be filled by a representative for interexchange carriers (other than Bell Operating Companies) with annual operating revenues in excess of $3 Billion per year. The deadline to submit nominations is April 24, 2008. See, FCC notice.

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