FCC Proposes Modernization of Cellular Service Rules
The FCC proposed to change how the cellular service is licensed -- from a site-based to a geographically based regime. The spectrum covered, in the 800 MHz band, was the first used for cellphones. The FCC also proposed eliminating data filing requirements in seven areas. The proposed rules approved by commissioners at Wednesday’s meeting would put cellular licensees on the same footing as other bands, including PCS, AWS and the 700 MHz band. CTIA sought the rule changes in an October 2008 petition. The notice and an accompanying order were not controversial and didn’t spark much discussion on the eighth floor prior the vote, agency officials said.
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The FCC proposed a two-stage process for moving to geographic licensing. Cellular overlay licenses would be offered in stage one for all cellular blocks that meet a proposed “substantially licensed” test, the agency said. In those markets, site-based licensing would end and overlay licenses would be assigned through competitive bidding.
In other blocks, site-based licensing would continue for seven years, before shifting to geographic licensing. The Wireless Bureau is offering a digital map for every authorized cellular area, which is to be posted on the FCC’s website. A commission official said preliminary indications are that 80 percent of cellular blocks would meet the test for quick transition. The rulemaking notice wasn’t released by our deadline.
"The 800 MHz Cellular Radiotelephone Service is the band that spawned the mobile revolution roughly 30 years ago, and its unique site-by-site licensing model helped bring mobile service to all Americans, even in remote rural areas,” said FCC Chairman Julius Genachowski. “But the original licensing model has outlived its original utility. It’s time to transition from the old site-based licensing model to a more flexible geographically-licensed model."
"Adopted decades ago, the current site-based cellular licensing rules are now obsolete and create unnecessary burdens for both licensees and commission staff,” said Commissioner Robert McDowell. “The notice is detailed and broad in scope, setting forth an array of ideas. The order suspending certain filings associated with cellular licensing will permit the orderly and effective resolution of the fundamental changes and issues raised today.”
The original licenses were offered some 30 years ago, said Commissioner Mignon Clyburn. “Licensees were given five years to build networks in any part of a geographic location,” she said. “Any area, which was not built out during that time period, was then relinquished, and the FCC would subsequently re-license those unconstructed areas on a site-by-site basis. This licensing approach helped to drive construction of mobile wireless networks across the nation. But now we find that many of the site-based rules in this cellular service have become outdated."
AT&T and CTIA both hailed the rulemaking. “We are pleased that the commission is proposing a transition to a geographic-based licensing regime, which makes records maintenance easier and enables licensees to promptly implement network changes in response to customers’ needs,” said AT&T Vice President Joan Marsh.