MONTREAL -- Nextel officials were still reviewing the Commission’s 800 MHz rebanding report on Mon. The order, released late Fri. (CD Aug 8 Special Report), spells out in detail how the rebanding will work, potential penalties Nextel faces for noncompliance, and milestones for completion. A few critical issues remain, especially working out agreements with Canada and Mexico on cross-border issues, officials said, and the rebanding requires Nextel’s agreement.
Bundling strategies that pit cable companies against DBS companies and their partner RBOCs in the race to provide video, voice and data are evidence of “the intensity of the competitive rivalry” in the video provider marketplace, NCTA said in comments to the FCC. Cable implored the FCC to acknowledge that a “vigorous rivalry” exists between cable and DBS, as satellite has continued to erode cable marketshare, from 91% in 1995 to 73% today. NCTA said DBS companies are forming alliances with RBOCs to offer Internet and telephone service, and DBS has grown to more than 23% of the market. Comments were due Fri. in the FCC’s annual assessment of the status of competition in the delivery of video programming.
The deadline for submitting bids in NextWave’s private auction, scheduled for Thurs., came and went Tues. without a decision from the FCC that Nextel would get the 1.9 GHz spectrum it has been seeking. That was a potentially negative development for Nextel, which had pushed for a decision prior to the deadline. The FCC last week put a Nextel order on its agenda for Thurs.’s Commission meeting.
If the FCC hands down an order giving Nextel 10 MHz of spectrum at 1.9 GHz, as expected as part of the rebanding plan (CD June 25 p5), it could drive up prices in NextWave’s election scheduled to start July 8, with bids due July 6, Legg Mason suggested in a report Fri. “Although not directly linked, the Nextel and NextWave spectrum proceedings could affect one another,” Legg Mason said. “We believe that if the Commission stays with the 1.9 GHz option… this could increase the bidding for the NextWave spectrum because carriers will not have another shot at 1.9 GHz spectrum.” Analyst firm Kaufman Bros. said Nextel’s pending win at the FCC makes its stock look like an attractive buy, especially given its weakened price. “We believe the situation at the FCC is unusual because of the interference that is being caused to public safety operations,” the firm said in a Fri. research report. “The solution appears to us to meet the needs of all parties and does not represent a give-away of spectrum, in our view.” Medley Global Advisers said Nextel appears to be winning, but several details still must be worked out: “Some of these issues include the specific price Nextel will pay for 1.9 plus rebanding costs, time lines for relocating private and public licensees in 800, and other aspects of the consensus plan that could involve forcing Nextel to give up some spectrum in the 700 band.” Medley said the FCC must still evaluate the litigation risk presented from siding with Nextel.
CTIA and other wireless carriers launched a massive, last minute offensive Thurs. aimed at turning around the FCC’s expected decision to give Nextel 10 MHz of spectrum at 1.9 GHz. CTIA said in a filing that NextWave auction reserve prices confirm that giving Nextel 1.9 GHz as part of a rebanding scheme would constitute a “massive giveaway.” Meanwhile, an alternate public safety group held a press conference to denounce the plan.
The FCC is expected to release a public notice as early as today (Fri.) establishing an auction starting in 6 months of 2,400 MHz of spectrum divided among multiple locations, including spectrum returned by NextWave. Major wireless carriers made a last-min. push to open all licenses to all carriers and do away with designated entities (DE) restrictions. But those efforts largely fell flat in recent days, sources said.
With WiMax potentially at the breakthrough point, the WiMax Forum is putting much of its emphasis on establishing a certification program for products, similar to a good housekeeping seal of approval, officials said. As carriers start to launch WiMax services, the forum is gently reminding the public that so far no products have been certified.
BOSTON -- Office of Engineering & Technology Chief Edmond Thomas said the pending 2nd report and order on ultrawideband, to be ready in the next few months, probably won’t break new ground beyond the first report, which UWB promoters say has helped spur rollout of the new technology. Thomas said the one issue of substance the order “may” take on is changing the rules for frequency hopping (FH), which has been one of the most contentious technical issues on UWB. Thomas was here late Wed. to make brief remarks ITU’s Task Group 1/8, which is struggling to develop an international position on UWB (CD June 10 p5).
Reaction was generally positive to the FCC’s adoption Thurs. of new band plans for the wireless, educational and satellite industries. “The hard work by the Commission and relevant stakeholders will lead to huge benefits for the public in receiving advanced wireless services under flexible use conditions, whether the user seeks mobile, portable or fixed services as optimal,” said Wireless Communications Assn. (WCA) Pres. Andrew Kreig.
The Wireless Communications Assn. asked the FCC to take at least 6 MHz of spectrum allocated to the Mobile Satellite Service to be used for the relocation of MDS channels 1 and 2 in an expanded 2.5 GHz band. An official said Fri. without the extra spectrum “it’s going to be virtually impossible to relocate MDS 1 and 2 licensees in markets that have not transitioned to the new bandplan. Unless the Commission does this the winners of the [advanced wireless services] licenses in those markets may not be able to deploy.” WCA also expressed the “strong sentiment” in a separate filing that the FCC shouldn’t freeze processing of new licensing applications between adoption of ITFS/MMDS rules and the implementation dates. The Commission is expected to adopt revised rules next week (CD June 4 p1). WCA made its case in a meeting with Wireless Bureau Chief John Muleta this week. “WCA does not believe that there will be any material harm caused to the transition process by allowing the continued submission and processing of applications during this period,” the group said: “To the extent that any application may be filed during this interim period that is designed to secure an unfair post-transition regulatory advantage, rather than to provide new or expanded service, the petition to deny process will allow interested parties to raise the issue and give the Commission ample opportunity to assure that the transition process is not delayed.”