The Deal
Monday, November 23, 
12:38 am

A new wrinkle in the 700 MHz auction process

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As the countdown to the federal 700 MHz auction continues, a new company has entered the fray with an argument sure to please the energy-conscious among the FCC. Arcadian Networks, which said today that it has raised $30 million (for a total of $90 million) in a closing led by Goldman, Sachs & Co., argues that it plans to use its available 700 MHz spectrum for better communications among power plants. This could save energy by enabling the plants to better manage demand. While Arcadian says it has plenty of spectrum for its current plans, it may elect to purchase more spectrum in the open market or at auction.

If it does seek more spectrum, the energy angle is a new argument for an old debate. Typically, companies such as Cyren Call and Frontline Wireless have spouted a public service rhetoric around their 700 MHz plans, in hopes of convincing the FCC to influence spectrum auction rules in their favor. They argue that while they will use the spectrum to provide wireless services for consumers, they will also hold some in reserve for public safety use. The image of police officers and fireman unable to communicate in an emergency has proven successful before in convincing the FCC to influence the allocation of spectrum rights. 

Will the link between melting polar icecaps and services that allow utilities to send a wireless message to various power substations to conserve power to help Arcadian get its share of the 7000 MHz pie? We’ll have to see once the rules are set and the auction finally takes place.—Stacey Higginbotham

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