Alliance Forms to Push for 700 MHz Interoperability Mandate

Alliance members said Monday the time is ripe for the FCC to act, especially since the initial petition seeking 700 MHz device interoperability was filed in September 2009. Alliance members told us they believe two members of the FCC, Democrats Mignon Clyburn and Jessica Rosenworcel, are ready to vote to impose a mandate. The agency approved an interoperability notice of proposed rulemaking at its March meeting. Chairman Julius Genachowski said at the time regulation may not be the answer and encouraged industry players to come up with a voluntary solution (CD March 22 p2).

"As 4G LTE is deployed across the United States, it is critical that these advanced mobile broadband services and devices are available to all Americans,” said CCA President Steve Berry. “With an interoperable lower 700 MHz band, the FCC will provide operators and consumers with economies of scale to make a greater variety of devices available at lower costs and support rapid nationwide buildout, including in rural areas and regional markets.”

AT&T, which opposes a mandate, disputed comments by alliance members. “Having government mandates in this area will do nothing but slow down the deployment of next-generation mobile broadband, causing slower data speeds, poor reception and dropped calls for consumers,” a company spokesman said. “The commission should reject these calls for unnecessary government intrusion in the competitive wireless industry."

"The outlook for FCC action is positive,” said a carrier executive, who predicted at the launch that industry negotiations will not lead to a meaningful agreement. “After three years the FCC has amassed a heap of comments on this question and, more recently, substantial quantitative data from the impacted industry players and consumer groups,” the lawyer told us. “These comments and the technical data demonstrate a need for … no technical impediment to restoring interoperability at the Lower 700 MHz. There also appear to be at least two votes at the commission in favor of restoring interoperability at Lower 700MHz.”

New America Foundation’s Wireless Future Project supported calls for a mandate. “Convergence to a single technology -- LTE for 4G communications -- gives consumers seamless coverage across carriers, better service, and more competition,” said Michael Calabrese, representing NAF. “Without interoperability, American consumers and our economy will be denied the cost savings available from greater scalability, reducing consumer access to the most innovative 4G devices. We look forward to the FCC quickly restoring this key fundamental for a robust, innovative wireless future."

"The new Interoperability Alliance is a transparent attempt to pick winners and losers in the competitive wireless marketplace,” said Fred Campbell, director of the Competitive Enterprise Institute’s Communications Liberty and Innovation Project. “The U.S. has long implemented a policy of technological neutrality, which has resulted in the deployment of non-interoperable technologies by carriers in many bands, including WiMAX, CDMA, and GSM. Yet, this new alliance is seeking interoperability in only one band where there are unique interference issues from adjacent bands. The alliance members are seeking a competitive advantage from the FCC in the 700 MHz band while enjoying technological neutrality in their own spectrum."

The name change to CCA comes in advance of the group’s annual convention in Las Vegas Sept. 23-26. “Over the past several years, the wireless industry has seen increased consolidation and the emergence of a market duopoly,” Berry said of the name change. “In light of the duopoly and the threat of further industry consolidation, our members -- both large and small -- all share a common goal.”