Kevin Martin, the Chairman of the SEC, is set to propose new rules for next years 700Mhz spectrum auction that will require an open network. He says:
“Whoever wins this spectrum has to provide … truly open broadband network — one that will open the door to a lot of innovative services for consumers,” Martin said in an interview Monday. What this would mean in practice: “You can use any wireless device and download any mobile broadband application, with no restrictions,” Martin explained. The only exceptions would be software that is illegal or could harm a network.
This is a huge shift from the traditional closed network such as cellular carriers who dictate what and how devices are used on the network. He believes (rightly) that an open network will create a new burst of innovation as application developers will be free to try and distribute applications for wireless devices. The carriers are of course upset that this could decrease the value the network and what profit they could make. However this value would be reduced at the front end resulting in lower auction prices for spectrum. However this is a perfectly valid use spectrum for policy reasons. You can read more here.
