[opendtv] Re: Auction Hi-lights

On Tue, Mar 25, 2008 at 11:03 AM, Manfredi, Albert E <
albert.e.manfredi@xxxxxxxxxx> wrote:

> Craig Birkmaier wrote:
>
> > I strongly suspect that the first thing these companies will
> > do is move much of their traditional voice traffic into the
> > 700 MHz spectrum.
>
> > I would expect to see more voice in the 700MHz bands, freeing
> > up the higher frequencies now used for voice for the rapidly
> > growing 3G data services.
>
> I'm not so sure. First off, the 800 MHz spectrum already "owned" by
> these cellular carriers is being freed up now that analog cellular is
> being allowed to switch off. So it would seem that cell companies can
> use that spectrum for digital, along with the 1.9 GHz band they are
> already using. And digital phones should already be set up for the 800
> MHz band, so no problem with another migration.
>
> The other point is that 3G is supposed to carry voice as well as
> broadband applications. My cell phone is 3G. It's supposed to be
> compatible with both narrow and wideband CDMA channels. I've read that
> most of the 3G bands are, in practice, only being used for more voice
> calls. So it's not like 3G service has to be separate from voice
> service. They coexist in wideband channels. Matter of fact, cdma2000 can
> also use three separate narrow CDMA channels to create a single 3G
> wideband channel.
>
> And, the deal with the FCC was that devices using this spectrum had to
> be open. Not walled garden. To me, that hints that the new band will be
> dedicated to non-traditional services, not more of the same cell
> service.


Only the C block and maybe they will still try to do something different
with the D block yet to be auctioned successfully. The A, B and E blocks are
all wide open as to use.

>
>
> > Since a big chunk of the 700MHz spectrum comes with the new rule
> > of open device attachment, Best Buy is betting that they can
> > take a large chunk of the retail market as the carriers close
> > these expensive storefronts and let consumers pay the full cost
> > of the devices in return for the ability to connect them to any
> > network.
>
> Okay, but I don't take that to mean that walled garden cell phone
> service will cease. The Forbes article merely said that these carriers
> will use retail outlets like Best Buy, rather than sell their phones in
> their own stores.
>
> > The old models don't apply here. The mobile market is not moving
> > toward subscription service - it is moving away from these
> > services. Mobile consumers are going to look for services, not
> > channels. Services that provide exactly what they need, that
> > take advantage of 24/7 connectivity to push the service to the
> > mobile handset for on demand usage.
>
> I don't know why you imply these different models are mutually exlusive.
> The DVB-H services in Europe seem to be by subscription, for example.
> Makes no difference whether the material is transmitted in real time, or
> destined to storage (which seems to keep your interest, year in and year
> out).
>
> >> The money might be going in the Treasury in the short term,
> >> but somehow AT&T and Verizon are planning on making back many
> >> times that amount.
> >
> > Indirect taxation.
>
> Exactly. That's why this whole operations bothers me. It bothers me to
> have a government agency getting all excited by the outrageous amounts
> it pried out of the carriers coffers. The consumer ultimately pays, and
> yet, WE OWN that spectrum.
>
> Bert


The  money  collected in the sale of the spectrum is like a one time tax.
It takes a  hit on the economy one time and depending on how and for what
and how fast the Government recycles it it may have some small effect. At
the moment the government is doing a very good job of infusing money into
the economy so a $19 Billion hit is small, very small potatoes in the US
economy.

As to the buyers as soon as they write the checks it is sunk capital. Any
decision they may make after mailing that check should/would/will be the
same whether they bought the spectrum for $1 or $1 Billion. They will/should
do whatever makes the most money. If they manage the spectrum based on what
they paid for it in any way they will be managing it badly to some degree.

Bob Miller

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