Verizon: We Can't Make Money with Open Access So No One Else Should
Verizon is suing the FCC about open access rules the agency has set up for the 700-Mhz band auction next year. Defenders of calcified telecomm companies have argued, looking out for the interest of the U.S Treasury, that the auction won't raise as much money with the open access requirements as without them. Talk about living in a bubble. Verizon may not bid as much for the band because it won't be able to make as much money. Google and other can and probably will make a nice profit off it.
Verizon is suing because the FCC is overstepping its bounds; Wired puts a fine point in the issue:
To be clear, Verizon has not sought a stay to prevent the auction from actually starting on Jan. 16, 2008. It apparently just wants the government (and everyone else) to know that competition won't be appreciated. This, in and of itself, is odd because the company, under anti-trust precedent, would not be able to even hold this yummy spectrum, according to Frontline Wireless.In reaction to Verizon's legal move, Frontline observed that the petition "throws a wrench into the auction to promote competition and innovation for consumers…," adding that "[the company] is challenging the FCC for doing what Congress required it to do in the first place -- ensure that auction policy is guided solely by the public interest."
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