Newsletter Article # 1- Auction 73
The much anticipated transition from analog to digital television takes another step in its journey on Jan 24, 2008 with The Federal Communication Commission’s Auction 73. With a date of February 17th 2009 set as the day by which broadcasters surrender all analog licenses, the government must be prepared for a smooth transition. The FCC’s auction of spectrum not only allows for this but would also raise a substantial amount of money for the Treasury as it faces a huge deficient due to the war and the numerous natural disasters that have plagued the nation recently.
This auction would allocate the last portion of the most sought-after airwaves for wireless services. These broadcasting analog licenses are desirable because the can travel long distances and, because they are of a lower frequency can penetrate buildings easily. All of these characteristics make them essential to not only wireless and other telecommunication companies who intend to expand their broadband capabilities and services, but also to some unlikely companies who plan on using this spectrum to improve some of their logistical problems.
Some of the contenders in the auction are Verizon Wireless, AT&T who according the Business Week may enter into an alliance with fellow auction participant Frontier Wireless aka Dish Network. Sprint Nextel are also considered to be top competitors for the spectrum because they plan to fully launch WiMax technology later in 2008. This may come as a surprise after their announcement that they intend to lay off 4000 workers in February due to a falling stock price and subscriber losses. Then there is Google who plans on bidding in an attempt to foster support for its Open Handset Alliance which would undoubtedly with the recent support of Microsoft , create some effect on the industry. Another surprising auctioneer is Chevron USA an oil company who plans to use the spectrum to build their own communication network in order to communicated with their workers as well as tracking and monitoring there trucks and containers. (Kharif)
The winners in the auction are highly anticipated and may change the way we view and access wireless technologies.
Sources:
"FCC AUTION: FACTSHEET: AUCTON73." Federal Communication Commission. 7 Jan. 2008. 20 Jan. 2008
Kharif, Olga. "Look Who's Bidding in Auction 73." businessweek.com. 20 Dec. 2007. 20 Jan. 2008