CTIA Raises Interference Concerns on Dish Waiver

"DISH’s proposed service would create the significant potential for harmful interference to incumbent PCS networks,” CTIA said (http://xrl.us/bmgf6k). “The recent LightSquared proceeding demonstrates the importance of identifying and resolving known interference concerns prior to taking action on a waiver petition. In that proceeding, the Commission granted LightSquared’s modification application while leaving unresolved the significant interference issues that were raised by LightSquared’s proposed operations.” CTIA said the Dish application raises questions that should be looked at as part of “a proceeding of general applicability, rather than in a review of an individual transaction.”

LightSquared (LS) questions complicate FCC approval of Dish’s application, conceded Tim Farrar, president of analyst firm TMF Associates. “I think the perceived ‘windfall’ for LS, which is now a big part of the GPS industry campaign, creates a perception issue for Dish if they were to get the waiver for free,” Farrar said. “I suspect they are going to have to make some offer of compensation by either giving back part of the spectrum or structuring some payment to the Treasury -- perhaps linked to what is paid for the adjacent AWS-2 2020-25/2175-80 block -- if that pairing is maintained -- in a future auction."

But Public Knowledge Legal Director Harold Feld questioned whether carriers would ultimately want to block grant of the waiver. “I don’t think the wireless industry is in much of a position to stop or condition the application,” Feld said. “The FCC wants to see new competitors in this space. With LightSquared now up in the air, Dish is the most promising new entrant on the horizon."

The Dish application could be hard to turn down, given the FCC’s push to find additional bands for wireless broadband, said Jeff Silva, analyst at Medley Global Advisors. “While I expect the FCC to take the views of wireless carriers and other parties into account -- especially those regarding potential interference -- it’s quite possible Chairman [Julius] Genachowski will find Dish’s 4G LTE proposal attractive because it tends to further the same spectrum, competition and universal broadband policy objectives (especially with respect to rural areas) associated with the agency’s conditional ... waiver grant to LightSquared. In that sense, Dish seems to have a lot going for it,” Silva said. “At the same time, given the extensive industry and political controversy over LightSquared interference issues, one would expect the FCC to exercise extreme caution in evaluating the Dish plan.”

Also raising concerns, MetroPCS urged the FCC to require more information from Dish before acting on its waiver application (http://xrl.us/bmgf9h). “DISH paints a picture with broad strokes about the resulting wireless network that will provide a competitive alternative to the emerging duopoly in the wireless industry -- AT&T and Verizon,” the carrier said. “However DISH fails to provide the detail necessary for the Commission -- or interested parties, such as MetroPCS -- to fully understand how and when DISH plans to use this very valuable resource -- 40 MHz of prime spectrum.” More competition in wireless is a good thing, but “DISH provides no basis for concluding that DISH actually will provide such competition.” MetroPCS said Dish’s 40 MHz band is “one of the only viable near-term options remaining” for meeting an FCC goal of reallocating 300 MHz of spectrum to wireless broadband over the next five years.

Sprint Nextel said the FCC should require Dish to pay its share of the cost of the broadband auxiliary service (BAS) transition before acting on Dish’s application. “Sprint Nextel finished clearing the 2 GHz [Mobile Satellite Service] spectrum on July 15, 2010, but has not received any reimbursement payments by either MSS licensee to date,” Sprint said (http://xrl.us/bmgfqi). “Under the Emerging Technologies doctrine, and as specifically applied to these proceedings, Sprint Nextel is entitled to reimbursement payments by subsequently entering MSS licensees for their pro rata share of the relocation costs.”

Globalstar said waivers to allow Dish to provide terrestrial wireless service (http://xrl.us/bmggen) will enable MSS licensees “to attract the critical mass of MSS ATC subscribers necessary to establish a viable terrestrial offering.” Denial of the waiver requests would “preclude arrangements with handset manufacturers, limit consumer choice, and stymie the growth of the MSS ATC customer base,” the company said. The FCC should also give similar flexibility to MSS companies providing “substantial satellite service,” Globalstar said. The agency can adopt rules of general applicability in the pending MSS rulemaking, likely the most efficient way for the FCC to increase terrestrial flexibility, Globalstar said. Globalstar should be able to gain similar flexibility if the agency continues to consider MSS terrestrial service on a case-by-case base, Globalstar said. Globalstar is in the process of regaining compliance with ATC requirements.