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S-Band Uncertainty

FCC Denies Dish Waiver Request But Will Seek Comment on Service Rules

Dish Networks got some but not all of what it was asking for from the FCC Friday. In an order, the FCC approved Dish’s purchase of TerreStar and DBSD, but denied its request for a waiver of the integrated services rules for the spectrum. The order was handed down by the International Bureau and did not require a vote by commissioners. On Wednesday, FCC Chairman Julius Genachowski circulated a notice of proposed rulemaking asking questions about the service rules, which is set for a vote by the full commission at the FCC’s March 21 meeting.

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FCC officials hope to wrap up the rulemaking by the end of the year, when Dish could potentially get full terrestrial use of the spectrum without the limitations that could have come with an early waiver. With LightSquared spectrum off the table, the S-band has been getting increasing attention from a wireless industry anxious to see more spectrum come online.

Dish Chairman Charlie Ergen warned during a recent financial call that the company’s plans to launch a wireless network as a fifth national carrier, using S-band spectrum, were contingent in part on quick FCC approval of a waiver (CD Feb 24 p5). The FCC recommended reallocating the S band for broadband as part of the spectrum provisions in the National Broadband Plan.

"Since the release of the National Broadband Plan two years ago, the commission has been clear and consistent about its intent to remove regulatory barriers in this band through a rulemaking to unleash more spectrum for mobile broadband,” an agency spokesman said. “In light of the unique characteristics of this spectrum band, including the possibility of converting it to full terrestrial use, and based on the record in this proceeding, the rulemaking process will best serve the public interest and maximize the long-term value of the spectrum for the American economy."

The FCC decision may be in part a way to avoid controversy, said MSS consultant Tim Farrar.