from: Technology Daily [1]

Consumer Advocates Urge Competition In Broadband

By David Hatch

(Thursday, April 5) The rapid growth of high-speed wireless Internet service has prompted public-interest advocates to seek consumer safeguards and assurances that competitors can flourish against incumbents such as AT&T, Sprint and Verizon Wireless. In separate but related comments filed with the FCC, an ad hoc coalition of advocacy and watchdog interests urged regulators to treat an upcoming spectrum auction as a unique opportunity to foster alternatives to dominant cable- and phone-delivered broadband.

"This spectrum, in our view, represents the last best hope for meaningful competition in broadband," said Jeannine Kenney, senior policy analyst at Consumers Union, during a telephone press briefing. "This only happens if the FCC gets the rules right the first time. It has one chance to do that," she warned. Also participating are the Consumer Federation of America, Free Press, Media Access Project, New America Foundation and Public Knowledge.

But CTIA, the wireless association, argues that regulation is unnecessary. "It's an awful idea," spokesman Joe Farren said. "We don't need a government mandate when the market is already delivering these services." He said the concerns are "hypothetical" and that restrictions would "devalue" the frequencies to be auctioned. "Whoever suggests that competition and innovation isn't alive and well in the wireless space simply isn't paying attention," he said.

"What was the phone is now the 21st century Swiss army knife," Farren emphasized, noting that cellphones double as address books, calendars, cameras, MP3 players, televisions and Web browsers. "The evolution of the device is clear evidence that when consumer demand emerges it is immediately met by supply."

At issue is the so-called 700 Megahertz spectrum to be relinquished by analog television stations as they shift to digital signals in early 2009. The frequencies, to be auctioned no later than Jan. 28, are well-suited for wireless Internet access because they travel long distances and penetrate walls and trees. To maximize the spectrum, the coalition wants licenses conditioned on adherence to "network neutrality" rules guaranteeing that customers can attach compatible devices, reach websites, post information and offer services.

It also wants the FCC to require that half of the spectrum would be accessible to competitors on a wholesale basis. Mark Cooper, director of research at the Consumer Federation of America, said this "open access" is essential "because the networks are scarce" and robust competition has not emerged between wireline and wireless broadband firms.

The parties noted in their written comments that the window is narrow for the FCC to act. "Services have not yet been deployed in the 700 MHz band. The commission can and should adopt [new] rules for the 700 MHz band now . . . so that auction winners have time to incorporate these principles into the design of their networks from their inception," they wrote.