Sorry, Sprint, T-Mo. The FCC isn’t letting you collude in the upcoming spectrum auction
Kevin Fitchard
You can’t blame Sprint and T-Mobile for trying, but the Federal Communications Commission is heading off a potential caper involving the two ganging up in next year’s broadcast spectrum incentive auction. In a blog post, FCC Wireless Bureau Chief Roger Sherman said the commission is proposing new rules that would prevent nationwide mobile carriers from jointly participating in future auctions.
Assuming the commission adopts these rules, that would effectively kill any plans for Sprint and T-Mobile to form a separately funded joint venture to bid in the auction. Last month, the Wall Street Journal reported that such venture was in the works. From Sherman’s blog post:
“We must make sure that the biggest providers are not able to limit broad participation in the spectrum auction. As promised in the Mobile Spectrum Holdings Report and Order, we now seek comment on whether and how we should restrict the ability of wireless companies to combine their bids during an auction.
“Our goal is to promote the participation of as many parties as possible in the auction. If two of the largest companies are able to bid as one combined entity in the auction, their combined resources may have the effect of suppressing meaningful competition. Therefore, the item tentatively concludes that joint bidding arrangements between nationwide providers should not be allowed.”
If Sprint and T-Mobile do merge, they’re actually in a pretty tough spot. Such a blockbuster deal would take a year to get over any regulatory hurdles, and there’s a good chance that the FCC or the U.S. Department Justice might shoot it down completely. Meanwhile, the most significant spectrum auction of the decade is scheduled for mid-2015.
The complicated incentive auction hopes to transfer a huge chunk of the 600 MHz UHF TV airwaves over to the mobile carriers for 4G use, and the results of the auction could dictate the winners and losers’ mobile broadband strategies for years to come. Sprint and T-Mobile likely won’t know until the auction is over whether they would combine their license winnings or be forced to make do with the licenses they win individually. They can’t plan ahead.
The situation is even more complex now that Sprint isn’t T-Mobile’s only suitor. On Thursday French ISP Iliad revealed it has made a $15 billion bid for half of T-Mobile’s shares.
While the FCC is cracking down on the big carriers, it is also taking to steps to open up future auctions to smaller players. Sherman said the FCC wants to lift rules that today limit participation in the auction to carriers that build their own networks – a rule that is often sidestepped anyway (just ask Comcast).
That could potentially open up the mobile industry to small businesses and even startups. Instead of building their own networks they could lease out their spectrum to carriers or partner with larger companies to finance new network construction.
But it also seems to me that such policies could encourage more spectrum speculation, something we’ve already had a problem with in recent years. Companies could just squat on the public airwaves, waiting for a deep-pocketed carrier to meet its asking price.
Unlocking Your Cell Phone In The U.S. Is Officially Legal Again
Greg Kumparak @grg
For the past 2 years, unlocking your cell phone without your carrier’s permission has, for absolutely ridiculous reasons, been illegal in the United States.
Not anymore!
As we covered at greater depth last week, the US Congress and Senate were both in agreement that unlocking a cell phone should not be an illegal act (punishable by up to 5 years in jail, no less!)
The only thing left was for the President to put his stamp on it. Consider it done. The bill is set to be reviewed every 3 years so things may very well change moving forward — but for now, you’re good.
So go! Be free! As long as your phone is paid in full (read: you can’t just go grab a phone at a deep discount then disappear into the ether), you’re free to unlock it without that lingering fear that you might be that one person who actually gets busted for something so dumb.
Google developing Moto Maker-like smartphone customization tool called “Workshop”
Mark Hearn @MisterHearn
Google is reportedly in the process of developing a new platform that will let users create custom smartphone cases and wallpapers. Referred to as “Workshop,” the budding project only works with the Nexus 5 for now, but it’s possible that it may support other devices whenever Mountain View officially opens it up to the public. Still in its infancy, Workshop is comprised of two tools: MapMe and Moments.
MapMe lets users design custom wallpapers and cases based on a specific location, but Workshop will also feature pre-loaded options like special landmarks. After selecting a location, users can add color and text to their project to spice things up a bit. Custom wallpapers will be interactive and will have the option to display location specific information, such as tweets, weather and other localized content.
Workshop’s Moments feature lets users import photos from their computer or Google+ albums and set them as custom case images and live wallpapers. Similar to MapMe, people can add personalized text that can be positioned at the top, middle or bottom of their Moments designed case.
Google’s ownership of Motorola Mobility may have been short-lived, however it’s obvious the company’s Moto Maker platform left a lasting impression on the search giant. Workshop is still in its early development stages, so pricing and release information are unknown at this time.
Apple’s $450 million ebooks antitrust settlement approved by judge
Chris Welch @chriswelch
Apple’s $450 million ebooks case settlement received preliminary approval from US District Judge Denise Cote today, though the ultimate sum distributed to consumers will hinge on the outcome of Apple’s appeal. If the original verdict is upheld, $400 million will go to consumers that were “harmed” by the price-fixing scheme between Apple and book publishers, with $50 million directed to lawyers’ pockets. If Apple somehow pulls an upset and wins on appeal, the company won’t have to pay anything. And then there’s a third scenario: the appeals court could overturn Cote’s verdict and kick the case back down to her for another go. Should that play out, Apple will pay consumers $50 million, with lawyers still earning a healthy $20 million payday.
Cote, who was originally concerned about this possibility, now seems more confident that the appeals court will affirm her finding that Apple and publishers violated antitrust laws. Apple, by contrast, still refuses to admit any wrongdoing. “We did nothing wrong and we believe a fair assessment of the facts will show it,” the company said last month when the settlement was made public. “If we are vindicated by the appeals court, no settlement will be paid.”
YouTube’s ‘MVP’ Shiva Rajaraman Just Bolted For Spotify
Jillian D’Onfro
YouTube’s consumer products lead Shiva Rajaraman is leaving the company to join Spotify, according to Re/Code’s Peter Kafka.
Rajaraman was responsible for helping YouTube launch its own music subscription service, which is supposed to launch this fall. He’s one of several YouTube execs to leave in the last few months.
The response to the news on Twitter has been overwhelmingly positive towards Rajaraman, with several current and former employees making it clear how much they loved working with him.
One former YouTuber told Business Insider that Rajaraman was very fun and charming, with great interpersonal skills. He built constructive relationships with everyone, by working incredibly hard and producing top tier work, while always crediting his team and colleagues. Oh, and of course, he’s very smart, our source says.