So now AT&T has joined Verizon (and Frontline) in challenging the FCC's 700 MHz proposed rules. 

AT&T's beef is not about the no-locking, no-blocking rules - rather, they're focused on the block of spectrum that a commercial private actor is supposed to use to build out a network for public safety's purposes (the "public/private partnership").  They're saying it's too hard to do a deal with public safety officials before the auction.  There just isn't enough information coming from public safety about what it needs. 

I'm focused on two things:  (1) Verizon's arguments (we should know more in the next few weeks, when they file their statement of issues due October 10), and (2) the lawfulness of the entire "reserve price" scheme.

Think about it.  How can the FCC condition regulations (about what should be a common-carriage public service anyway) on the payment of money?  And then have the rules dissolve if it doesn't get the money?  This is such a pure quid pro quo - it's government for sale.  Completely screwy.  But how do you say "completely screwy" in legalese? 

Sure, it's arbitrary.  But is there some constitutional dimension to the arbitrariness?