Regulatory News: FCC, Block D, and Extortion
Scheduled for April 15, 2008, a hearing with U.S. Rep. Ed Markey, D-Mass., will reveal some light on the controversy surrounding the failed bid for the 700MHz Block D auction. Block D spectrum is part of the public safety block. Consumer and public interest groups as well as the 9/11 Commission urged the FCC to investigate the role of Cyren Call concerning Frontline’s withdrawal from bidding on block D. Questioning the meeting between Frontline and Cyren Call, the group pointed out that the meeting “may have had the effect of preventing Frontline from attracting needed capital and discouraging other bidders"(Kaplan 2008).
Cyren Call’s Morgan O’Brien stated that "Anyone stating or implying that I or any member of Cyren Call or the Public Safety Spectrum Trust (PSST) 'demanded' a spectrum lease payment is lying," (Mark 2008). Thus brings up the question of Extortion and corruption as well.
Perhaps the FCC Chair should examine his role in the Block D auction as part of the investigation. As stated in an article by Network World’s Johna Till Johnson, “That's a laugh. Chairman Kevin Martin should start by looking in the mirror. He carved out the D-block specifically to appeal to former FCC Chair Reed Hundt's new company [Frontline], which dropped out of the bidding last minute. With cronyism like this, who needs real corruption?”
Sources:
Johnson, Johna Till. (2008, March 31). Eye on the Carriers. Network World. Vol. 25 Issue 13, p29-29, 1/2p.
Kaplan, Peter. (2009, March 21). U.S. Watchdog Groups Query Part of Wireless Auction. Reuters. Retrieved from http://www.reuters.com/article/marketsNews/idUKN2041258920080320?rpc=44&pageNumber=2&virtualBrandChannel=0
Mark, Roy. (2008, April 4). Cyren Call Denies Spectrum Auction Influence. Retrieved from http://www.eweek.com/c/a/Mobile-and-Wireless/Cyren-Call-Denies-Spectrum-Auction-Influence/?sp=0&kc=EWKNLSTR041008STR1
Pinchefsky, Carol. (2008, March 21). FCC to Investigate D-Block Auction. Retrieved from http://www.eweek.com/c/a/Government/FCC-to-Investigate-D-Block-Auction/