I ended up talking to the Post reporter on the phone and e-mailing with the Post's ombudsman. The ombudsman told me that the FCC confirmed to the Post that the "free Wi-Fi" story was correct, which is odd, because I also talked to people at the FCC who said the exact opposite. Similarly, a TechCrunch reporter wrote that "my contact at the FCC told me that there was no such plan" as the one reported by the Post.

The Post reporter was genuinely nice and seemed eager to correct the record, but the execution was lacking. She followed up with a more realistic piece titled "Five things to know about 'free' public Wi-Fi." It explains some of the realities of the situation, such as the fact that the FCC won't be building any networks itself and that whatever networks are built won't necessarily be used to provide free Internet access.

The Post's follow-up story was all well and good, but the original story was never corrected or retracted. In addition to getting the front-page treatment, the initial Post story was coupled with a cringe-inducing video titled "FCC offers path to free Internet access." A host begins the spot by asking, "What if Wi-Fi didn't come from a router in your living room but instead from powerful TV antennas? And better yet, what if you didn't have to pay for it? That possibility could become a reality across the US thanks to a new proposal by the Federal Communications Commission." (Have I made it clear that the proposal is not new and never required "free access," either?)

Parsing Kang's story a little bit more since posting this, I've become even more confused. In her tweet she says she's talking about the white spaces in the incentive auction NPRM, but those couldn't possibly be used for a nationwide wireless network since they'd be low-power Part 15 type bands. Also, unlicensed in the 600 MHz guard bands are not Chairman Genachowski's design, they were allowed by Congress when they gave the FCC auction authority. So what is Kang referring to? Most likely it is the Chairman's initiative, announced at CES earlier this month, to clear 195 MHZ in the 5 GHz band to improve Wi-Fi.... Bottom line, I think Kang conflated two separate proceedings into one big non-story that made it past the Washington Post's editors all the way to the top left corner of the front page. I hope there is a correction tomorrow.

The FCC recently developed provisions for unlicensed devices to operate on TV channels that are not used at any given locations, called "white spaces." Interference is avoided by controlling access to the spectrum through a database of protected service areas. The white spaces in the TV spectrum offer an opportunity for a new generation of products such as Super Wi-Fi and wireless broadband services for communities, particularly in rural areas. In the incentive auction proceeding, the FCC proposes to make a substantial amount of additional spectrum available for unlicensed uses. First, the Commission proposes to continue allowing the operation of white space devices in the broadcast television spectrum in the newly repacked band. In addition, the FCC proposes to make the guard bands in the new band plan available for unlicensed use. Under the plan discussed above, the two proposed guard bands would be 6 MHz wide and could be larger when accounting for the addition of "remainder spectrum" resulting from the uneven division of 6 MHz wide television channels into 5 MHz blocks. Furthermore, the FCC proposes allowing unlicensed devices to operate for the first time on Channel 37 by establishing appropriate protections for existing operations in the white space database. Taken together, the FCC's proposals will enable a substantial amount of spectrum use by unlicensed devices. A significant portion of this spectrum will be available on a nationwide basis, which is important because there currently is little or no white space in the TV bands in parts of many major markets. In making these proposals, the FCC seeks to promote greater innovation in new products and services, including increased access for wireless broadband services across the country.

In short, because there's that first reverse auction in which broadcasters are supposed to be incentivized to cough up existing spectrum (again, which taxpayers gave them for free...), it's not entirely clear how much 600 MHz spectrum will be available to be auctioned off to anyone. Basically, they have these two chunks, starting at 608 MHz and counting down, and another at 698 MHz and counting down -- and the total amount available will depend on how much the broadcasters agree to cough up in the reverse auction. At the "bottom" of that range, the FCC has proposed a 6 MHz guard band for each of these chunks, and making much of that subject to the existing white space rules and hopefully allowing something useful to be done with that unlicensed spectrum, especially if it's combined with other available white space. The "guard bands" are called that, as they're supposed to "guard" between interference between licensed spectrum on either side, though there's a fair bit of debate over how much space is really needed to "guard" such interference. That argument leads to some suggesting that the FCC is offering up too much for the guard bands in an effort to get more unlicensed spectrum on the market.

The fight is over how much spectrum is used for unlicensed and how much for licensed. The telcos, like AT&T, want to limit the unlicensed spectrum, while internet companies, like Google, want as much of it as possible. Similarly, there are some in Congress who are against offering very much (if any) unlicensed spectrum, taking the really dumb short term view that any unlicensed spectrum (even if it leads to tax-creating innovations) is leaving money on the table, since telcos are expected to spend billions buying up any licensed spectrum available. Again, though, that's the same old story.

In short: there's an ongoing fight about how much spectrum in newly auctioned 600 MHz spectrum will be "unlicensed," which is important for some cool things. But, that's got little to do with a magic "free" nationwide internet service. This is important stuff, but the reporting by many folks has been abysmal.

Speaking to analysts, AT&T's chief strategy officer John Stankey yesterday acknowledged the company is now well-positioned on the spectrum front -- even before the company starts moving on their new plan to use WCS spectrum for LTE deployment.

"Even under ideal circumstances, getting new spectrum on the market in the next five to seven years is aggressive," Stankey said. "But what we do know is that AT&T is well-positioned now...These deals give us confidence that we can meet our LTE objectives for next two years and they will allow us to deliver competitive performance."

Executives from the nation's largest wireless carriers now seem to be pretty pleased with their spectrum positions. AT&T CEO Randall Stephenson recently said the carrier has a solid spectrum position for the next three to five years if it gains approval for its pending spectrum purchases. Verizon Communications CFO Fran Shammo said that with its recently completed $3.9 billion purchase of nationwide AWS spectrum from cable companies, Verizon Wireless now has enough spectrum to handle its capacity needs for the next four to five years. Sprint Nextel CEO Dan Hesse said the carrier's Network Vision plan will give Sprint a strong spectrum position through the end of 2014 and that date will be extended to 2016 with the addition of spectrum from Clearwire. And T-Mobile USA CTO Neville Ray said the carrier is busy refarming its 1900 MHz PCS spectrum and now has enough 1700 MHz AWS airwaves to deploy 10x10 MHz channels across 90 percent of the top 25 U.S. markets when it launches LTE next year.

"I think it [the spectrum crunch] was overblown. And everyone had an interest in pumping up a spectrum crisis," said TMF Associates analyst Tim Farrar. He said the FCC wanted to promote itself as the agency that could spur innovation and expand broadband access; Verizon and AT&T didn't want the FCC to cap the amount of spectrum available to them; companies that speculated with spectrum did not want the market to think they had worthless assets; and smaller carriers wanted more spectrum on the market to lower the price of all spectrum. "Everybody had an interest in talking it up and no one had an interest in saying the emperor has no clothes," he said.

Spaccarelli has posted online the documents he used to argue his case and encourages other AT&T customers copy his suit. Legal settlements usually include non-disclosure agreements that would force Spaccarelli to take down the documents.

In its letter, AT&T asked Spaccarelli to be quiet about the settlement talks, including the fact that it offered to start them, another common stipulation. Spaccarelli said he was not interested in settling, and forwarded the letter to The Associated Press.

New businesses are the key to job creation and economic growth, and the Internet is one of the most fertile platforms for new businesses ever established.

We believe deeply in the value of decentralized, emergent, bottom-up innovation, and we want to shape public policies that will allow it to flourish.

1. Suggest your own topics that should be part of an innovation agenda by responding to the main post.
2. Vote on existing topics to show which ones are more important... and which ones are less important.
3. Comment on the existing topics to provide feedback or suggest ways to improve them.

Perverse incentives like this are an inevitable consequence of the FCC's Soviet-style process for assigning spectrum usage. As long as the uses for spectrum are decided by fiat by the FCC, current licensees are going to play these kinds of games to ensure they get the biggest slice they can, even if they waste spectrum in the process. A better way to handle the transition (and still a good idea today, for that matter) would have been to give the broadcasters a fixed spectrum allocation and then allowed them broad flexibility on how to use it—including the right to lease or sell unused portions to third parties. That way, if they found a way to transmit television signals with less spectrum, they would have been able to lease out the unusued portions to third parties who could put it to more productive use.

In addition to promoting more efficient spectrum use in the short run, putting more spectrum on the market (as they're doing in the UK) would have positive effects on the overall telecom market. By driving down the price of spectrum it would make it easier for new firms to get into the wireless market. So far, the relatively small number of licenses that have been put on the market has allowed incumbents to snapped them up and keep out new entrants. Putting more spectrum on the market would make this strategy a lot more difficult to pull off.

About 30 percent of the respondents indicated they had plans to ready themselves for the transition, even though they do not have to do anything to maintain service.