Verizon Sues To Block Open Access to Spectrum

Verizon threw a wrench in plans for a quiet run-up to the Federal Communication Commission's January auction of the valuable 700-MHz spectrum. The telecom company filed a petition with a court of appeals to overturn the FCC's decision to attach open-access rules to part of the spectrum.

The filing does not state any specific grounds for review, asserting merely that the FCC's rulemaking exceeds its authority under the Communications Act, the Constitution, and the Administrative Procedure Act, and is "arbitrary, capricious [and] unsupported by substantial evidence."

In July, the FCC passed a plan for the auction that imposes open-access rules on the so-called "C" block of the spectrum, encompassing roughly a third of the spectrum to be auctioned. Under the rules, the C block spectrum must be open to all devices and applications.

Google Calls Action 'Regrettable'

Google, which had pressed for even greater rules for open access, has announced its intention to bid in the auction. Bidding starts at $4.5 billion and the winning bid is expected to wind up over $9 billion.

Writing on a Google blog, Chris Sacca, head of special initiatives, wrote, "The nation's spectrum airwaves are not the birthright of any one company. They are a unique and valuable public resource that belong to all Americans." Sacca went on to say that it is "regrettable" that Verizon has decided to use the court system "to try to prevent consumers from having any choice of innovative services."

Google might not have that much to worry about. Verizon faces a "very difficult" time in trying to undo rules the FCC has promulgated, Philip Verveer, a partner with the law firm of Willkie, Farr & Gallagher in Washington DC, said in a telephone interview. As an antitrust lawyer for the Justice Department, Verveer was instrumental in the breakup of the old AT&T.

"Agency action...