The FCC Fri. released a further notice of proposed rulemaking that would block wireless carriers from partnering with designated entities (DEs) to buy spectrum at cut rates in FCC auctions. The FCC said it plans to wrap up the proceeding in time for the rules to take effect before a June advanced wireless services (AWS) auction.
Howard Buskirk
Howard Buskirk, Executive Senior Editor, joined Warren Communications News in 2004, after covering Capitol Hill for Telecommunications Reports. He has covered Washington since 1993 and was formerly executive editor at Energy Business Watch, editor at Gas Daily and managing editor at Natural Gas Week. Previous to that, he was a staff reporter for the Atlanta Journal-Constitution and the Greenville News. Follow Buskirk on Twitter: @hbuskirk
The 90 MHz of 700 MHz spectrum set to be auctioned by the FCC by 2008 probably will be the last big block of spectrum below 2.5 GHz to reach market for many years. A June auction of advanced wireless services (AWS) spectrum (CD Feb 2 p5) will draw big firms. But the auction of 700 MHz spectrum to be cleared by the end of analog broadcasting (CD Feb 2 p1) may see the long-rumored entry into that spectrum by nontraditional players. Verizon Wireless and T-Mobile, which lobbied hard for the law authorizing the auction, are considered likely participants. The AWS auction is carriers’ first priority now, because it’s “first in the queue,” an industry source said.
T-Mobile and Verizon Wireless are widely expected to emerge as the major bidders, with the role Sprint Nextel and Cingular will play in the auction less clear, when the FCC sells 90 MHz of advanced wireless services (AWS) licenses in an auction slated to start June 29, which could raise $15 billion based on 2005 estimates from the Congressional Budget Office.
The FCC proposed financial penalties against Alltel and AT&T on accusations of failure to certify they have properly protected customer proprietary network information (CPNI). Each would have to pay a $100,000 “forfeiture” unless it can show it has the required certificates. The FCC also ordered all carriers, wireless and wireline, to submit a copy of their compliance certificates to the Commission by Jan. 6. The actions come with Chmn. Martin expected to testify today (Wed.) at a House Commerce Committee hearing on why phone records aren’t safe from “pretexting.”
Chmn. Martin said he’s not certain if 800 MHz rebanding -- the outgrowth of the landmark 2004 order by the FCC, remains on track. Martin also warned Mon. that the FCC likely will take a tough stance as it evaluates requests for waiver from the tier-one wireless carriers who failed to meet a Jan. 31 deadline that 95% of their subscribers use “location-capable” handsets as part of the move to E-911.
An FCC-sponsored panel Mon. kicked off a 5-month probe of what failed and what to change in emergency communications and other networks based on lessons from Hurricanes Katrina and Rita. Comr. Copps urged the panel be fearless and press hard: “If you ruffle feathers, so be it.” Chmn. Martin expects a list of recommendations of changes the FCC can make on its own and changes it must undertake with other agencies, he said.
Sprint Nextel Fri. filed a lawsuit in Fla. against the parent company of 4 online data brokers it alleges use “illegal and deceptive practices” to obtain and sell customer call records. The lawsuit, the first by Sprint against a data broker, means all 4 major national carriers have filed such suits. Meanwhile, Senate Commerce Committee announced Fri. it will hold a hearing Feb. 8 in the consumer subcommittee chaired by Sen. Allen (R-Va.) to look more closely at the theft of consumer cellphone records. The House Commerce Committee plans a hearing Feb. 1.
The major national wireless carriers clashed with smaller carriers in reply comments at the FCC over whether to revise rules to guarantee equitable roaming rates across the U.S.. With each side accusing the other of overcharging, comments on an advanced notice of proposed rulemaking are getting close scrutiny because the FCC is interested in rural issues, sources said. Commission Democrats, in particular, have raised concerns about roaming.
The GSA delayed by 9 months, until early 2007, its target dates for picking winners of the Networx contracts to provide communications services to the federal govt. worth about $20 billion over 10 years. Sources in govt. contracting told us Thurs. they were surprised by the delay’s length, though not that the agency was unable to pick winners within its original timetables. GSA likely needs more time because the bids are so complex, not because there was an unexpectedly larger number of them, sources said. Under the revised schedule, the broad Universal contract will be awarded in March 2007; the more narrowly focused Enterprise contract, in May 2007. GSA is expected to award multiple contracts.
Wireless carriers cautioned the FCC against imposing a mandate that they be able to broadcast emergency alerts to subscribers, warning that the delivery of millions of alerts would choke networks, possibly during times of national emergency when subscribers need to place other calls. Carriers also advised the Commission that the costs for wireless carriers would be significant and shouldn’t be imposed without federal support.