FCC’s 600 MHz Incentive Auction to Start End of March, but Surprisingly Google Won’t Bid

Internet giant and Android creator Google clearly stated that it will not bid for 600 MHz spectrum licenses in the FCC's upcoming incentive auction of TV broadcasters' spectrum. Google will join Charter communications, Sprint and others sitting out the event. 

"Like all those interested in improved connectivity and equitable access, we'll be following the upcoming spectrum auction closely. That said, we have not filed to participate," a Google representative said. 

Also, Google did not participate in the FCC's landmark AWS-3 auction that ended a year ago. However, Google was a part of the FCC's 700 MHz spectrum auction in 2008 - but Google did not purchase any spectrum.

Regardless of its plans to sit out the auction, Google continues to play a major role in the U.S. mobile industry. It is the company behind the Android operating system, the world's most widely deployed smartphone OS. Moreover, it launched an MVNO service called Project Fi last year that allows users to access public Wi-Fi networks alongside the cellular services of both T-Mobile US and Sprint.

Besides the nation’s two major wireless carriers, other companies that indicate participation in the auction include- T-Mobile, Dish Network, Comcast and more. 

Sprint, another big name striving to turn around its business and implement a small cell network deployment, has also confirmed last year that it will not bid in the auction. Earlier this month, Charter CEO Tom Rutledge said “the company's pending acquisition of Time Warner Cable and Bright House Networks, and uncertainty about the eventual outcome of the deal would likely preclude its involvement in the auction.”

According to J.P. Morgan- “The FCC's upcoming incentive auction of TV broadcasters' 600 MHz licenses is likely to fetch only $25 billion to $35 billion in total winning bids, or roughly $1 to $2 per MHz/POP.” This is far below the $2.68 MHz/POP generated by the landmark AWS-3 auction that ended a year ago with almost $45 billion in total bids. It's also less than half of some analysts' estimates for the upcoming 600 MHz auction.

FCC Entice AT&T, T-Mobile on Mobile Data Policies

The FCC recently questioned AT&T and T-Mobile regarding their data policies. FCC chairman Tom Wheeler reported that the commission decided to send letters to both the mobile carriers and also to Comcast. According to The Wall Street Journal, these two carriers are among a handful of broadband providers that have drawn scrutiny for mobile data offerings. T-Mobile zero-rates content from specific cellphone providers for its Binge On video streaming service and AT&T is experimenting with sponsored data in which it pays the data charges rather than the user.

Last week Verizon has planned to launch sponsored data service next year. Comcast’s Stream TV doesn’t count against usage caps for Comcast users. Most people believe such models enable telecom companies to boost favored content that is bound to run afoul on FCC’s net neutrality guidelines. These models favor reputed media organizations, but net neutrality backers argued that this makes it even more difficult for smaller players to compete. The cellphone service provider might get affected due to this case. 

The FCC didn’t react to the situation that might appear to skirt net neutrality principles, but the commission is focused on keeping tabs on mobile and cable industries to make changes in the data policies of cellphone service providers. 

TIA once again took issue with the FCC's stance following Wheeler's remarks. "Consumers benefit when mobile operators provide new services and offerings. U.S. mobile consumers are in the driver's seat, free to pick the service that's right for them, thanks to the robust competitive marketplace," said CTIA EVP Brad Gillen. "We need to promote and facilitate new offerings and innovations for consumers if we are to lead the world in mobile services going forward."

Finally, the U.S. appeals court heard the complete argument earlier this month over the issue of the FCC’s net neutrality rules which may eventually decide the issue.

Verizon to Pay the Largest Fine for Invading Customers' Privacy

                                                     

 

A U.S. investigation has put the telecom company Verizon Communications Inc. in a soup of sorts by levying the largest fine so far. The investigation has found that the telecom giant failed to properly notify some customers of their privacy rights before using their information for marketing. Unfortunately, the company will now have to pay a substantial sum of $7.4 million to settle the reported investigation.