What is With the FCC?

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

What is With the FCC?

Julius Genachowski as Chairman of the FCC did a decent job on the framework of ideas that is called the National Broadband Plan. In it, he concluded that we would need 500 MHz of spectrum to make it happen. Notice he didn't say fiber or wireline, but bet on wireless.

And he already grabbed 25 MHz of spectrum in the 2.3 GHz band to get started. In addition, he is working on pole attachment rates, in order to make it a tinsy bit less challenging to hang fiber or radios on utility poles. So he is mad at work.

On the flip side, he is doing some bat crazy stuff like the "Third Option". The only way that you can truly take care of Net Neutrality is by developing true competition. That means a bulk of the NTIA and RUS grants and loans must go to small business (not subsidiaries of large business).

It means that the bulk of the 500 MHz spectrum needs to be licensed to small business. Why? I'm not running for the SBA, but the Big 4 Cellcos - Ma Bell, VZW, T-Mobile, and Sprint/Clearwire - are sitting on spectrum that they bought but don't deploy. How does that help? Small businesses are the heart of the American economy. They get stuff done. How many jobs has AT&T and VZ created in the last 3 years? Oh, about negative 120K.

Another foolhardy move by the FCC is witnessed in this release: "Today, the Federal Communications Commission approved the transfer of 4.8 million lines in primarily rural and smaller-city areas to Frontier Communications Corp. from Verizon Communications Inc. This transaction -- which includes significant deployment commitments from Frontier -- will help advance the goals of the National Broadband Plan by bringing broadband to millions of consumers, small businesses, and anchor institutions in 14 states across the West, Midwest, and South." [see here]

Has Julius not noticed that Fairpoint made similar promises and collapsed into bankruptcy? How will Frontier fair any better riddled with debt, declining landlines, no cellular, and rural customers? Too big to fail? Unlikely.

Frontier made a lot of promises [see here], but merger conditions historically are not met - and what recourse does the FCC have? And when have they ever enforced them?

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