FCC Head Hopes 700 MHz Public Safety Network Will Draw BiddersFCC Head Hopes 700 MHz Public Safety Network Will Draw Bidders

With Frontline Wireless out of the bidding for a license to build a nationwide public safety network in the 700 MHz band, FCC Chairman Kevin Martin has expressed hope that another company will step forward and bid for the spectrum.

With the auction scheduled to get underway in two weeks, time is running out. "I'm still hopeful that there will be someone who will emerge as being willing to take on that challenge," said Martin in a meeting with reporters.

The main challenge for any bidder is money, because the single-license public safety network in the D-Band would cost at least $10 billion, according to industry estimates. Frontline, which ceased operation earlier this week, had assembled a strong team of technologists, politically-connected executives, and venture capitalists, but it needed to pony up $1.28 billion to participate in the auction and the tight credit markets made it impossible to raise the necessary capital.

"Interest in the D-Band won't disappear," said spectrum expert Joe Nordgaard in an interview Thursday. "Clearly, only a deep-pocketed player would go after it. Large companies like AT&T and Verizon could do it on their own. They each have a history of proven work in public safety and military networks."

Nordgaard, who is managing director of wireless consultancy Spectral Advantage, said a group of smaller companies also could make a bid for the spectrum.

AT&T recently paid $2.5 billion for spectrum in the 700 MHz band, although none of it was in the D-Band. Nordgaard said the company will likely add to its holdings in the auction. Verizon also has said it plans to bid in the 700 MHz band. And Google, a newcomer to FCC auction bidding, has indicated it will bid in the auction and has earmarked $4.6 billion to participate.

With impetus from Congress, the FCC has set aside spectrum for a national public safety network, aimed at police, firefighters, and emergency first responders, that could be shared with commercial interests.