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Verizon Wireless fights FCC rules for spectrum auction

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From Dow Jones / the Associated Press

Verizon Wireless has launched an appeal against the Federal Communication Commission’s final rules for next year’s auction of prized radio spectrum, calling them arbitrary and capricious.

The company urged the U.S. Court of Appeals for the District of Columbia Circuit to strike down rules establishing so-called open-access conditions. It said they exceeded “the commission’s authority” and were “unsupported by substantial evidence and otherwise contrary to law.”

With encouragement from Internet companies such as Google Inc. and EBay Inc., the FCC decided to attach two conditions on a large chunk of spectrum being sold in a bid to encourage a potential new entrant into the wireless broadband market.

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The rules say that whoever buys a certain part of the spectrum must allow any handset device to be attached to the wireless network that is subsequently built. They also require the winning bidder to allow any software application to be downloaded onto handsets over the network.

Both of these conditions would potentially shake up a wireless industry in which incumbent players such as Verizon Wireless exert strict control over the devices and applications their customers can use.

Verizon Wireless is jointly owned by Verizon Communications Inc. and Britain’s Vodafone Group.

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