FCC Alleges Extortion In 700MHz Spectrum Auction

It seems that allegations are swirling that a sub-contractor the FCC used during the auction for the 700MHz may have acted improperly. It now appears that the FCC is going to conduct an investigation and that the US Congress is also overlooking the proceedings. What is in question is if the sub-contractor may have provided false information to some bidders. Though the allegations make it appear that false information may have been provided, there are also other questions that will be needed to be answered. Currently the FCC has a gag order to all who participated in the auction. According to one article it states:

Consumer watchdog groups and some lawmakers want to know why the block of spectrum reserved for public safety in the Federal Communications Commission’s 700 MHz auction didn’t hit its reserve price.

On Wednesday, a coalition of nine consumer advocacy groups, including the Consumer Federation of America, Consumers Union and the Media Access Project, sent a letter to the chairman of the FCC asking the agency to investigate whether the public safety requirements for “d” block license were too stringent. The groups also want the FCC to study whether plans for the shared public-private network are even still viable.

But consumer groups aren’t the only ones concerned that the d block didn’t sell. House Energy and Commerce Committee Chairman John D. Dingell (D-Mich.) and telecommunications subcommittee chairman Edward J. Markey (D-Mass.) are already planning a hearing for early next month to consider whether the public-private partnership model for building the wireless network for emergency responders should be changed or if the reserve price should be lowered.

Hopefully the spectrum for public safety will be back up for auction and this time sold.

Comments welcome.

Full story is here.

Tags: 700MHz, allegations, congress, contractor, extortion, fcc, hearings, investigation, spectrum