[comp.dcom.telecom] Cellular License Lottery

gmp@rayssd.ssd.ray.com (Gregory M. Paris) (03/21/90)

On Monday (3/19), I got a chance to talk briefly with one of the
technicians at Metro Mobile cellular in Providence, RI while they
changed my service from NYNEX Mobile Communications to them (I didn't
like the quintupling of my monthly service charge that NYNEX
implemented without warning).

Of interest to me was why neither Metro Mobile nor NYNEX claim
Aquidneck Island (the "Rhode Island" in Rhode Island and Providence
Plantations) as part of their respective service areas.  I was told
that the FCC allocated a license for this area only just late last
year.  Further, that the FCC's procedure is to hold a lottery for the
license and sell (right word?) it to the lucky winner.  In this case,
as apparently often happens, the license went to neither of the
carriers in this area (unfortunately, I can't remember the name of the
winner).  So far, that company has not announced plans as to what
they'll do with the license -- use it (unlikely), or sell it for many
times what they paid for it.

I don't understand two aspects of this process.  First, why not
allocate the license for the area right off?  (I'd have appreciated
that.)  Second, what purpose does it serve to have a third party gain
the license and make a quick but seemingly undeserved profit from it?

One other thing the techs mentioned, which they debated amongst
themselves, was whether the Wampanaog (I'm sure I spelled that
incorrectly) Indians were successful in gaining the cell license for
the Cape Cod, Massachusetts area.  From what they said, the tribe 
claimed the license under their existing treaty rights.  Anyone 
know more about this?


Greg Paris <gmp@quahog.ssd.ray.com>
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