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Key FCC decisions delayed, but hope for white spaces and Clearwire

By CAROLINE GABRIEL

Published: 4 November, 2008

READ MORE: Clearwire | Spectrum | Regulation

US election day, and whatever happens at the White House, the day looks set to be an anticlimax at the FCC. Chief Kevin Martin had hoped to vote on a whole series of important issues today, ahead of a possible change of FCC make-up early next year, but has now delayed decisions on intercarrier compensation and the universal service fund, and there may still be deadlock on opening up the white spaces within TV spectrum. However, it should go ahead and vote on the Sprint-Clearwire joint venture proposal.

Although many are expecting that the FCC will have to revisit the white spaces issue, which is being debated between the unlicensed wireless community and the broadcasters, one Commissioner, Robert McDowell, said this week he remains "optimistic" that the vote would go in favour of opening up the spaces for low cost broadband wireless.

But the intercarrier debate - on how phone companies pay one another for long distance calls that traverse their networks - will have to wait for another meeting. Martin favors a radically different and simplified system, with uniform charges nationwide, and also a change in how fees are assessed for the Universal Service Fund, which helps telcos provide service in rural areas. Both issues are highly controversial, but could be revisited as early as December 18.

"I am disappointed that we will miss the opportunity for comprehensive reform," Martin said. "I would like to be encouraged by my colleagues' commitment that they will truly be ready to complete this much needed reform on December 18. The nature of the questions they would like to include makes me doubt they will have found their answers with an additional seven weeks."

Martin's proposals were largely seen as beneficial to the large telcos and were opposed by consumer advocates, smaller carriers and state regulators.

Clearwire CEO Ben Wolff said this week that he was confident that the FCC vote would go in favour of the Sprint venture, with no significant conditions. "Everyone understands it's a pro-competitive deal," Wolff said. "It creates a new nationwide broadband network. It's not a partisan issue. It's just good policy." If the FCC votes yes, Clearwire shareholders will vote on November 19, the last major hurdle to cross, and the transaction could then be completed by year end as planned.

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