LEADING WIRELESS INDUSTRY ENTREPRENUERS SEEK OPEN ACCESS
FOR PART OF 700 MHZ SPECTRUM TO BE AUCTIONED
‘Just Do It’ Versus ‘Just Ask the Big 4’
NEW YORK CITY, June 7, 2007 – The Wireless Founders Coalition for Innovation, a new group of wireless entrepreneurs who are behind numerous industry “firsts” in the U.S. market, is calling on the FCC to apply wireless Open Access rules to a single swathe of spectrum in the upcoming 700 MHz auction. This core group of innovators told FCC Chairman Kevin Martin, in a letter filed today, that the 700 MHz auction provides an historic opportunity, allowing the Openness of the wireline Internet to be applied for the first time to the wireless world and unlocking a new wave of wireless entrepreneurial activity.
To this end, these entrepreneurs – who have developed groundbreaking mobile content, services, applications and platforms that have transformed the U.S. mobile industry – are urging the Commission to adopt Frontline Wireless’s proposed requirements for Open Access for a single block of 700 MHz spectrum. “One does not have to ask Comcast or Time Warner Cable or even Verizon’s
DSL division for permission to launch a new product, service or device,” the letter said. “To borrow the Nike slogan, you can ‘just do it. In wireless, on the other hand, you can ‘just ask the Big 4.’”
‘Real World’ Perspective
The Coalition is a new group of veteran wireless entrepreneurs. They have come together to bring an on-the-ground perspective as developers and innovators to the question of why wireless Open Access rules are needed for the proposed E Block of 700 MHz spectrum. Open Access is critical for this limited slice of spectrum to move beyond the current walled gardens of wireless operators, which stymie U.S. competitiveness, innovation and economic growth. The group consists of members who have developed innovations that have shaped today’s wireless market, including: (1) John Tantum and Amol Sarva, who co-founded Virgin Mobile USA, the first mobile virtual private network
operator in the U.S.; (2) Fabrice Grinda, founder of Zingy, which built the market for ringtones and mobile entertainment in the U.S.; (3) Jason Devitt, founder of Vindigo, which publishes more than twenty different applications for mobile
phones including its famous city guide; (4) Pat McVeigh, former CEO of Omnisky and former CEO of PalmSource; (5) Sam Leinhardt, founder of Penthera, which created one of the first software platforms for mobile TV broadcasting; (6) Martin Frid-Nielsen, founder of Soonr, which gives consumers access to PC data from any mobile device or network; (7) Alex Asseily, who founded Aliph, which created audio technology for wireless phones and the Jawbone headset.
Real-World Problems
In the letter to the FCC, the Coalition describes the time-consuming and costly roadblocks that would continue to stymie wireless innovation without E block Open Access requirements, including a need for developers to obtain approval
from carriers before deploying new devices or services on a network. This could take months of waiting for “compliance testing,” even when a device is a small variant to a previously tested device. In other cases, carrier Terms of Service
may prevent deployment of innovative applications that require passing data traffic “over the top” of carrier networks.
The “mother may I approach” to innovation embraced by the Big 4 carriers can slow time to market and increase risks and costs for the entrepreneur. In addition, applying Open Access to the E Block represents just a small portion of
the 700 MHz spectrum and only about 2.7 percent of the spectrum that will be allocated for commercial use following this auction.
Need for Openness
The Coalition is calling for three forms of Open Access in the E Block:
Open Services: The only limits on new services ideas should be the imaginations of developers, not terms of service of wireless operators,
who block basic Internet-style applications such as VoIP and webcams.
Open Devices: There is no need to subject entrepreneurs, or customers, to needless bottlenecks. An Open Device rule would ensure users may
connect any device they choose to a wireless network as long as it met certain specified technical standards. This would create a “a wave of
opportunity in the device space, including the evolution of cell phones toward ‘broadband communicators.’”
Open Auction: Frontline and Google got it right when they said recently that part of the E Block wholesale capacity should be made available to all comers via an open auction. This would lead to important new innovations, including the possibility of someone offering a less expensive
wireless service alternative subsidized by location-based advertising. “Over time, the provision of Open Access services by at least one carrier in the market could apply competitive pressure to the others to open up as well,” the Coalition said. “A slight regulatory nudge could result in a major push by market forces.”
Source: Wireless Founders Coalition for Innovation