FCC Comments

Letter to Chairman Martin Re: Reauction of D Block

Docket No. 06-150 and 06-229
| March 19, 2008

Chairman Kevin Martin
Federal Communications Commission
445 Twelfth Street, SW
Washington, DC 20554

Re: Service Rules for the 698-746, 747-762, and 777-792 MHz Bands
WT Docket No. 06-150

Implementing a Nationwide, Broadband, Interoperable Public Safety Network in the 700 MHz Band
PD Docket No. 06-229

Dear Chairman Martin:

With the conclusion of Auction 73, the Public Interest Spectrum Coalition (PISC)1 write to ask that the Commission not move immediately to reauction the D Block. Rather, as consistent with public statements made by several members of Congress and Commissioner Adelstein, PISC requests that the Commission sever the D Block from auction 73, reveal the results of the auction, and conduct a thorough investigation into why the D Block failed to attract bidders. After conducting the investigation, the Commission should place any proposed changes or remedies, including a decision to award the D Block to the current bidder, on public notice.

In particular, PISC asks the Commission to investigate carefully the allegations surrounding a purported meeting between Frontline, its financial backers, and Morgan O’Brien of Cyren Call that may have had the effect of preventing Frontline from attracting needed capital and discouraging other bidders. PISC does not suggest that – even if the facts detailed in press accounts are correct – any wrongdoing or violation of Commission rules necessarily took place. Nevertheless, the Commission must determine whether concerns over the possible financial exposure of the D Block winner and/or the role of Cyren Call as an intermediary played a role in the failure of D Block to attract bidders. 3PISC notes that, in addition to the failure of the D Block to reach its reserve price, eight licenses in other blocks attracted no provisional winning bids (PWBs) and remain in the hands of the Commission.

Only on a full examination of all relevant facts can the Commission propose a viable solution.