RCA Asks FCC to Extend 700 MHz Buildout Deadline by Two Years
The Rural Cellular Association asked the FCC to extend the buildout deadlines for lower 700 MHz A-block licenses for at least two years, in a petition released Friday. The extension is needed, RCA said, because at this point small carriers are having difficulty buying handsets without an interoperability mandate. RCA said the buildout deadlines should be extended for at least two years after the FCC wraps up a rulemaking on whether to impose an interoperability mandate. Without an extension, carriers face a June 13, 2013, buildout deadline for the licenses, which were sold in a 2008 FCC auction.
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"The lack of interoperability in the Lower 700 MHz spectrum has prevented competitive carriers from building out their networks,” said RCA President Steve Berry. “Without assurance that they will have access to interoperable devices and seamless roaming for their customers, how are smaller and regional carriers supposed to build out their networks and compete? The financial risk is enormous without clear direction from the FCC.”
Licensees also face interference from Channel 51 TV operations that complicate buildout in the 700 MHz A block, RCA said. CTIA and RCA jointly asked the FCC 16 months ago to prohibit the future licensing of TV stations on Channel 51, freeze all applications for new or modified broadcast facilities on the channel and accelerate channel clearing (CD March 17/11 p11). “Faced with these substantial obstacles, competitive carriers unequivocally qualify under the FCC’s standard that allows extensions when a licensee is hindered by causes beyond its control,” Berry said.
In the years since the 700 MHz auction, Lower 700 MHz A Block licensees have faced substantial and unforeseen difficulties in deploying that spectrum for wireless services, largely because of the lack of device interoperability across the 700 MHz Band,” said the RCA petition. “Without access to interoperable devices and network equipment, licensees in the Lower 700 MHz A Block have been significantly hindered in planning for, securing financing for, and purchasing the necessary equipment and infrastructure for building out the Lower A Block spectrum in their geographic areas.” Granting a waiver “would be consistent with Commission precedent, including past decisions to extend the deadline for deployments in the Wireless Communications Service (WCS) and Local Multipoint Distribution Service (LMDS) bands,” the petition said. “If, on the other hand, the Commission fails to grant an extension or waiver, many Lower 700 MHz A Block licensees would be unable to meet the build-out benchmarks altogether, while others would be forced to devote substantial funds and resources to build out networks with little expectation that interoperable handsets would make such networks economically viable."
Carri Bennet, general counsel to the Rural Telecommunications Group, said RTG supports an interoperability requirement across both the lower and upper 700 MHz bands. “Without interoperability, the data roaming rules are gutted,” Bennet said. “Both interoperability and enforcement of the data roaming rules in the 700 MHz bands are critical for there to be 4G competition. With respect to the A block extension to meet the buildout requirements, RTG supports a limited extension of time to allow A block licensees to meet their build out requirements. This can be accomplished through a blanket waiver of the build out rules or on an individual case basis."
Verizon Wireless announced in April it will sell its 700 MHz A- and B-block holdings, if the FCC approves its buy of AWS-1 spectrum from SpectrumCo and Cox. Questions arose immediately about the offer, given the pending buildout deadline and Channel 51 issues (CD April 19 p1). Verizon Wireless did not comment on the RCA petition.
"While not normally in favor of extensions on buildout obligations, it seems justified in this case,” said Public Knowledge Senior Vice President Harold Feld. “Carriers trying to make decisions on network deployment are in a real bind trying to figure out whether to rely on the current situation, which means very limited equipment at high cost, or wait for interoperable equipment, which will be cheaper and open the possibility of roaming on AT&T’s systems. Obviously, this has huge impact on buildout decisions. Given that the FCC has an open proceeding on interoperability, and has pledged to try to resolve that proceeding before the end of the year, a modest extension of the buildout obligations for lower 700 MHz A block licensees is reasonable."
"Free Press certainly agrees that competitive carriers have been hindered by lack of access to interoperable devices, thanks to the maneuvering by some companies to design their own proprietary band classes,” said Policy Director Matt Wood. “We haven’t yet reviewed the extension request though, or decided whether to weigh in on it.”