The FCC is constructing rules for the yet-to-be-scheduled auction of the 700 MHz spectrum being vacated by analog television broadcasters. The auction is expected to generate enormous revenue for the federal government. FCC Chairman Kevin Martin wants to make sure the user isn't forgotten in the bidding process. Martin has characterized the 700 MHz spectrum as being a third pipe into the home, and in his recent statements regarding the auction, Martin has made it clear that he favors use that creates a "truly open network" with few restrictions, aside from legalities regarding content.

The form this sought-after "openness" might take varies widely, and the largest carriers in the US have plans for the spectrum. One proposal that is currently circulating calls for the creation of a public safety/national emergency network. Not everyone views "openness" as a benefit of owning the rights to the spectrum. Verizon has publicly opposed Martin's open-platform requirement because it would diminish the value of the spectrum and impose regulation on the Internet, which has been able to skirt the regulatory powers of the FCC to deliver unregulated services that compare to those offered by regulated carriers. Many carriers complain that regulations place them at a disadvantage because regulated service is more expensive to deliver than IP-based versions, mainly due to taxes and tariffs that regulated services are subjected to. Google has gotten into the act, suggesting that auction winners should be able to "re-auction" their portion of the spectrum for limited periods of time.

There's nothing that requires the spectrum to be used specifically for Internet delivery, but the 700 MHz spectrum has the ability to penetrate deep into buildings and can travel long distances. It's clear that the value in the spectrum is the potential it holds for wireless services - whatever they turn out to be - and many view the 700 MHz spectrum as the "last best hope" for a new wireless player to join the fray.

Wireless service delivery is the most obvious use for the newly available spectrum. It's likely that the spectrum will deliver not only data services, but also will deliver mobile phone signals from carriers who have been hampered for years by bandwidth constraints and distance issues. The spectrum is especially attractive now, since both mobile content availability and demand have been growing rapidly.

The spectrum won't be available to the winning bidder until 2009 at the earliest. That's when the analog broadcasters must convert from their current broadcast technologies to digital format. The auction will take place later this year, however, to give the winning bidder time to make plans for using the spectrum.