Citing financial woes of mobile satellite industry, CTIA submitte...

and New ICO CEO Craig McCaw, who wants FCC to approve plan that would let him develop terrestrial spectrum using radio spectrum allocated to MSS operators such as New ICO (CD April 4 p1). Petition contends that New ICO’s request “is premised on an admission that MSS alone is not a viable business.” CTIA asked FCC to withhold grant of 2 GHz licenses to existing applicants while it considered petition. If agency decides to reallocate band for other uses, such as terrestrial wireless, it should be done through competitive bidding, group said. “In light of recent evidence that applicants in the 2 GHz band lack a viable MSS business plan, MSS spectrum could be used to help alleviate the shortage of spectrum for other services,” CTIA said. “The Commission should consider whether to reallocate this spectrum to other uses before licensing a category of MSS providers whose offerings may not be economically viable.” Much of petition point up market difficulties that CTIA said MSS providers have experienced, including bankruptcy filing of Iridium. Petition also cited SEC filing documenting $985 million losses that New ICO and Teledesic have suffered since their start. “Despite years of development and massive investment, MSS providers have been unable to make effective use of the extremely valuable spectrum that they received for free,” CTIA said. Petition said entities such as federal govt. users “may be relocated from their existing allocations.” Potential federal govt. relocation is reference to 3rd generation wireless decisions that FCC is examining in 2.5 GHz band, now used by MMDS and Instructional TV Fixed Service licensees, and that NTIA is overseeing in 1.7 GHz band, now used mainly by military.