By Brendan McGarry

WASHINGTON, July 3, 2007 – AT&T Senior Vice President Robert Quinn, Jr., on Monday told the Federal Communications Commission that the agency should reject encumbrances on radio frequencies that the agency is scheduled to put up for auction.

In a letter filed with the Federal Communications Commission and made public on Tuesday, Quinn said that Frontline Wireless was "overreaching" when it claimed that "lots of bidders" would be attracted to the restricted-use spectrum.

The spectrum at issue is within the 700 Megahertz (MHz) band of frequencies to be made available after broadcasters switch to digital television.

The AT&T letter is the latest shot in a lobbying squabble since the Center for Public Integrity's "Well Connected" Project reported that AT&T was considering a bid for the restricted-use spectrum – even if the telephone giant had to share those airwaves with competitors and public safety agencies.

"It's a different business model for us, but one that we'd be looking at," Quinn said in the interview. "If, in the end, that spectrum is attached to public safety, and for example there's a wholesale requirement, we'll take a look at it."

AT&T has not disputed the accuracy of the quotation.

In its latest filing, AT&T repeated its position "that, like any other potential bidder in the 700 MHz auction, AT&T would examine the Commission's final service rules" before deciding whether to made a bid.

The article reporting Quinn's statement soon became lobbying fodder for Frontline, a startup company attempting to build a nationwide broadband wireless network to be used by both first responders and consumers.

Frontline's plan calls for the FCC to award 10 MHz, of the 60 MHz that are scheduled to be auctioned by January 2008, to a licensee that would operate a wireless network on a wholesale, open access basis.

With the transition to digital television, police and firefighters are scheduled to receive 24 MHz of adjacent spectrum to allow interoperable radio communications by first responders.

In a June 27 letter to the FCC, Frontline used the Center's report to bolster its case for putting restrictions the so-called "E Block," or the 10 MHz at issue.

Frontline is a politically connected company led in part by Clinton Administration FCC Chairman Reed Hundt. They want to pair the E Block frequencies with 12 MHz of spectrum set aside for public safety to build a new nationwide broadband wireless network that could be used by both first responders and consumers. The plan calls for the winning licensee to operate the network on a wholesale, open access basis.

Frontline included the Center's article in a June 27 letter to the FCC, arguing the story "confirms" that the company's proposal will attract lots of bidders; that wholesale, open access operation of the spectrum is a workable business model; and that such conditions aren't a "poison pill," the term used to describe provisions designed to discourage incumbent carriers from participating in the auction.

The "Well Connected" Project's June 25 story also reported that AT&T was awaiting "final service rules before deciding whether or not to place a bid." It also quoted from previous AT&T filings rejecting open access.

In its July 2 filing, Quinn claimed that the previous story "completely mischaracterized the conversation" and "attempt[ed] to turn a non-position into a newsworthy" article about AT&T's interest in bidding on the restricted-use spectrum. Quinn didn't return a call seeking clarification on Tuesday.

"Our filings clearly indicate our position," AT&T spokesman Michael Balmoris said Tuesday. "We are against mandated open access requirements."

"Mandated wholesale requirements or 'open access' conditions placed on the upper 700 MHz E Block or any other licenses in the 700 MHz band should be rejected by the commission, as should the 'poison pill' laden proposal put forth by Frontline," Quinn said in his July 2 letter.

"The commission should continue to allow market forces, and not regulatory fiat, to shape the development of telecommunications services," the letter continued. "The Frontline proposal is inconsistent with this principle and forces public safety agencies to rely on an untested business plan."

AT&T wants the commission to designate three commercial blocks of spectrum in the upper 700 MHz band – two 11 MHz blocks and one 10 MHz block – to encourage greater auction participation, according to the filing. "Retaining a single large 20 MHz (or 22 MHz) block in the upper 700 MHz band (along with a possible 10 MHz block for a public-private partnership) will discourage participation in the upcoming auction and inhibit the development of new competition in this band," it states.

Also on Tuesday, Frontline responded to a group of lawmakers who, in a June 29 letter, urged FCC Chairman Kevin Martin to reject the company's proposal. The 16 legislators, including Reps. Joe Barton, R-Texas, and Fred Upton, R-Mich., criticized Frontline for attempting "to get valuable spectrum on the cheap."

In their Tuesday response, Frontline said: "Unfortunately, you have been given incorrect information about the Frontline Plan and about the auction. This misinformation goes to the heart of the positions taken in your letter."

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