The FCC had set aside 10 Megahertz of spectrum in the D Block for sale to be shared by public safety users and commercial users. The winning bidder of that segment must negotiate a sharing arrangement with a public safety group designated by the FCC.
The sole bidder, Frontline Wireless LLC, a startup with several prominent backers, did not submit the $128 million down payment to the FCC needed to qualify to bid.
“Frontline Wireless is closed for business at this time. We have no further comment,” the company said in a Jan. 12 statement. Company officials could not be reached for comment.
Media reports have speculated that Frontline was unable to get enough financing to cover the minimum required reserve bid of $1.33 billion for the D Block, an amount set by the FCC.
Before we hand over the public safety spectrum for the entire country to one company we should be sure that the company is solvent.
See also FCC’s unanswered questions.