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Though few people are aware of it, one of the most important allocations of radio spectrum in U.S. history will occur in a few months. Today the Federal Communications Commission announced rules for the auction of some of the most valuable public airwaves, but failed to ensure they will be available in an open manner.

Much of the 700 MHz band will be freed-up when U.S. television stations switch to more efficient digital broadcasting in February 2009. Most existing TVs not connected to cable systems will need converters to receive over-the-air signals after that time. The 700 MHz band has valuable properties of traveling farther and penetrating walls better than other frequencies. The availability of these frequencies offers a great opportunity to provide fast internet access everywhere, and stimulate development of new services with mobile voice, data, and video.

Wireless networks use radio spectrum, and the FCC regulates the use of this limited resource for the benefit of the public. Full open access provisions are appropriate for new allocations of spectrum because there is no public benefit from allowing exclusive and restrictive uses; while there are great benefits from open access. These provisions require that services are only sold with no restrictions on the devices or applications that are allowed, and that access is provided in a wholesale manner to other companies. This is very different than the current U.S. cell phone market; where subscribers are restricted and limited in many ways, phones are locked to specific providers and have features disabled, while wholesale access is extremely limited. Wholesale access has sometimes been required when one company is given an excusive franchise to string wires across public space and is then required to provide open access to other companies. Open access works well in Europe. A recent Business Week article explains how it has sparked great innovation and competition in France. The U.S. economy is increasingly tied to the internet, while we continue to fall behind other countries in broadband access. These newly available airwaves provide a great opportunity to jump ahead.

Google lobbied for full open access in the 700 MHz band. They want their services to be available as broadly as possible. To ease any concern that preventing exclusive and restrictive uses might reduce the business value of the licenses, Google also pledged to bid at least $4.6 billion if all the provisions were adopted. Phone companies spent millions lobbying against the provisions. The FCC only adopted some of the provisions for some of the licenses. Google now has even more reason to bid; hopefully they will win a good chunk of the licenses and make them available in an open wholesale manner.

It's clear that the FCC should support the most open access possible. Their decision not to support more open access provisions is inappropriate and could even suggest undue influence. The lack of open access will stifle choice, competition, innovation and growth. Congress should intervene by passing legislation requiring full open access in new allocations of the public airwaves. The upcoming auction is an important allocation of prime radio spectrum which belongs to everyone; allowing exclusive and restrictive uses might increase the perceived value of the licenses, but is a huge disservice to the public.