The Justice Dept. approved Cingular Wireless’ (CW) acquisition of AT&T Wireless (AWS) on Mon., on the condition that Cingular divest holdings in 13 markets. The license transfers still require FCC approval, but the DoJ decision marks a big step forward in the process. The DoJ said CW agreed to the conditions, which require Cingular to sell AWS mobile voice assets in some areas and to sell AWS mobile broadband assets in other areas.

The Wireless Bureau is conducting a mock spectrum auction today (Thurs.) for students at McKinley Technology High School in D.C. “The students participating in the mock auction will better understand software development processes and also how auctions impact their daily lives (e.g., mobile phones, eBay auctions),” the bureau said. “The auction will also give them the opportunity to ask candid questions about potential careers.”

Wireless carriers led by CTIA are weighing a petition seeking reconsideration after the FCC issued an order late Fri. denying 3 carrier petitions seeking an end to designated entity (DE) set-asides for small players in the upcoming Auction 58. In a positive note for carriers, the FCC delayed the critical PCS auction 2 weeks to Jan. 26.

Chmn. Powell said Thurs. he hasn’t decided whether the Commission should take steps on its own to clear the 1.7 GHz spectrum occupied by the Dept. of Defense if Congress fails to pass the spectrum relocation trust fund bill (HR-1320). The comments came after the Commission approved 5-0 a “clean up” order that addresses some of the remaining parts of clearing the spectrum, which ultimately is to be auctioned for advanced wireless services (AWS).

The FCC’s Advisory Committee on Diversity for Communications in the Digital Age approved a resolution supporting a designated entity set-aside in upcoming Auction 58. The set-aside is controversial, with wireless carriers mounting a campaign to open up auction rules. “The often times capital-intensive nature of communications businesses and the difficulties experienced by entrepreneurial companies in accessing capital make it virtually impossible for entrepreneurial companies to secure valuable spectrum licenses when bidding against well-capitalized incumbents,” the committee said. “Entrepreneurial companies will be successful in raising the capital needed to acquire and build out valuable spectrum licenses only if the capital markets perceive that the FCC’s Designated Entity eligibility rules will remain stable and certain.”

Wireless carriers acknowledged Fri. they seem to be making little progress on getting the FCC to change course on upcoming Auction 58, the major PCS auction slated for Jan. Carriers led by CTIA have been pushing the Commission to changes the rules of the auction to eliminate the set-aside for “designated entities” of more than 1/2 the 234 10-MHz licenses up for sale.

CTIA said in an ex parte filing at the FCC the Commission should change the rules for Auction 58 scheduled for Jan. to move away from the designated entity set-aside since that spectrum is within the small amount that will likely be made available to carriers soon. The ex parte noted that spectrum scheduled to go for advanced wireless services is “unlikely to be fully cleared or available for auction in the next few years.” Meanwhile, “substantial time” will be required to implement the transition to a new bandplan to open up 2.5 GHz spectrum. And 700 MHz spectrum bands “remain heavily encumbered by incumbent broadcast operations; FCC is unlikely to conduct another auction.”

The FCC said its Automated Maritime Telecom System (AMTS) spectrum auction raised $1,057,365, with 4 bidders winning 10 licenses. The licenses are being offered to carriers that plan to provide marine voice and data communications, similar to a wireless phone system, to tugs, barges and other water vessels. The qualifying bidders were the AMTS Consortium, Paging Systems, Telesaurus-VPC and Thomas Kurian.

The Minority Media & Telecom Council said in an FCC filing that while the designated entity (DE) set-aside in spectrum auctions isn’t a perfect mechanism, it mustn’t be scrapped. “Like most federal programs, the DE program is imperfect and can be improved,” the group said in an ex parte filing at the FCC, in a docket exploring a wireless carrier proposal to eliminate such set-asides: “If a ‘compromise’ is to be struck, then, it should be for the Commission to continue the DE program in its present form, while at the same time taking note of legitimate criticisms… raised by both its supporters and opponents.” CTIA and T-Mobile met with Comr. Adelstein last week to lobby him to back an end to set-asides. T- Mobile argued: “An analysis of the top auction winners demonstrates that the DEs overwhelmingly either are in financial distress or have sold their licenses.” T-Mobile said at a minimum the licenses returned by NextWave should be sold without set-asides. “FCC has fiduciary responsibility to ensure that the NextWave licenses are open to all bidders to maximize the benefit to U.S. taxpayers,” T-Mobile said. CouncilTree, a leading DE, met with Chmn. Powell last week to urge the FCC to “stay the course” on the auction. “Any further weakening of the DE rules/closed licenses denies broadband PCS entry opportunities for: small businesses; new entrants; minority and women-owned businesses.”

Senate Commerce Committee Chmn. McCain (R-Ariz.) will propose a $1 billion subsidy for DTV converter boxes when the Committee takes up new legislation designed to set a 2009 deadline for broadcasters to vacate the analog spectrum. The Commerce Committee is scheduled to mark up the bill Wed. The bill relies on estimates that auction proceeds from that portion of the 700 MHz band of spectrum could net the govt. $30-$70 billion and quotes both testimony from FCC Chmn. Powell and New America Foundation figures.