Verizon open to part of FCC auction proposal

By Sinead Carew

NEW YORK, July 26 (Reuters) - Verizon Wireless said on Thursday it is willing to allow any wireless device to operate on its network if required under an upcoming U.S. airwaves auction, but it should not be forced to guarantee that all devices, except ones it had endorsed, would work well.

The statement by Verizon Wireless, a venture of Verizon Communications Inc. (VZ.N) and Vodafone Group Plc (VOD.L), signaled a less critical view of proposed conditions for bidders in the U.S. government auction of wireless airwaves.

"We would agree to rules requiring a winning bidder to allow any device onto the network in that piece of spectrum, but there shouldn't be any requirement to guarantee that any games or Web applications on that device would work properly," said spokeswoman Debra Lewis.

Leading Web search provider Google Inc. (GOOG.O) has pledged to meet a minimum required bid of $4.6 billion in the auction if the U.S. Federal Communications Commission sets three requirements for the spectrum winner: to allow any device to work on the airwaves, to permit downloads of any software and to rent space on the network on a wholesale basis.

Google has said an open communications network will help drive Internet use and benefit its strategy for finding new ways to sell advertising on the Web.

But its proposed conditions go against typical practices by established U.S. wireless providers, which restrict use of their networks to devices and software downloads they have approved. Carriers do rent space on their networks to other providers, but it has not been a condition of their licenses.

FCC Chairman Kevin Martin has proposed a plan that would require support for any wireless device or software application, but has not included a wholesale requirement.

A majority of FCC commissioners said on Tuesday they supported Martin's plan. AT&T Inc. (T.N), Verizon Wireless' larger rival, is also supporting his proposed auction rules.

Verizon Wireless has been outspoken in its objections to the "open-access" conditions, saying they would reduce the value of the airwaves.

Even as it appeared to make a concession on the use of devices, the company sent out statements late on Wednesday saying it still objected to open access.

Verizon Wireless Chief Executive Lowell McAdam met with FCC Chairman Martin earlier this week to discuss the company's objections to "open access" and issues such as device portability, the company said. (Reporting by Sinead Carew, editing by Jeffrey Benkoe)