FCC chief backs some open access in airwave auction

By Peter Kaplan

WASHINGTON (Reuters) - The head of the Federal Communications Commission wants to require the winning bidder in an upcoming auction of valuable wireless airwaves to make them accessible to consumers using any device or software application, an FCC source said on Tuesday.

FCC Chairman Kevin Martin will propose that the open-platform requirement be part of the rules for a portion of the airwaves to be sold in the agency's auction of the 700 megahertz band, the source said.

Google Inc. (GOOG.O: Quote, Profile, Research, Stock Buzz), which has been studying whether to take part in the auction, supports the open-platform approach and called it a "favorable development" in a notice posted on the company's public policy blog.

But Martin's proposal will not include another provision sought by Google and some consumer advocates that would require the winning bidder to resell wireless services on their network to rivals on a wholesale basis, which they say would spur competition.

Martin is expected to circulate his proposal among the agency's other four commissioners sometime this week, the source said. The outlines of his proposal were first reported in Tuesday's edition of USA Today.

FCC officials are expected to hold the auction later this year and are in the process of setting rules for it.

The airwaves to be sold in the 700-megahertz band are considered valuable because they can travel long distances and penetrate thick walls. The auction is seen as the last opportunity for a new player to enter the wireless market.

The 700-megahertz airwaves are being returned by broadcasters as they move from analog to digital signals early in 2009.