• To avoid interference and get greater range, LARIAT tried to find LMDS or MMDS spectrum. No one would sell! Found problems with auction process and market. Many licensees appear to have bought on speculation, driving prices to absurd levels (>$6/pop). Some may have bought to foreclose competition. Licensees refused to partition (geographically) or to allow us onto even unused spectrum -- sometimes at any price. No concept of adverse possession. Deployment requirements not enforced. Equipment expensive.

 
• Why didn't we bid ourselves? Geographic areas too large; also, cell phone companies, with higher revenues, can always outbid wireless broadband.

 
• Auction abuse? One LMDS licensee appears to be a shell (No staff or sales; temp answers the phone; building owned by Echostar; "owner" of "small" business actually works at Echostar)

Lesson #5: The auction process should be reformed (or, for at least some spectrum, abandoned). Rules should prevent "gaming" the system. Some licensed spectrum should be designated exclusively for broadband; otherwise cell phone companies, etc. will drive prices too high for ISPs.