Telecom and technology are finally converging, but the FCC has been slow to keep up with the change, Commissioner Brendan Carr said Tuesday at FCBA's first “all chapter” virtual event, with members watching from across the U.S.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
Verizon signed deals with tower companies Crown Castle and SBA Communications to rapidly deploy equipment as it launches 5G and fixed wireless broadband in C-band spectrum. “Deploying 5G Ultra Wideband on this spectrum requires new network equipment including basebands and antennas to be placed on existing towers,” Verizon said Monday. The terms weren’t announced. The carrier secured an average of 161 MHz of C-band spectrum nationwide in the recent FCC auction (see 2103110034).
FCC Commissioner Nathan Simington said ensuring "the highest and best" intense use of spectrum and easing the path to infrastructure investment are among his top policy priorities. During a virtual AGL event Thursday, he said shrinking guard bands could be a potentially viable route. Simington said he's "skeptical" that a nationwide fiber buildout could be accomplished at $80 billion and cautioned that a Title II regulatory approach to broadband could raise the threshold for what constitutes a viable community for a broadband provider to offer connectivity. The FCC has done "quite well" in making low- and high-band spectrum available for commercial wireless, but midband needs remain, and that spectrum has a strong ability to drive 5G updates, Simington said: The FCC has the tools to make more spectrum available for terrestrial wireless, but the most effective way to use those tools is clear and open communication with federal users. "Often it's important to not let things get too far down the road before engagement." Simington said he hasn't heard any discussions about a twilight towers agenda item, though the issue could be under study at the staff level. Asked about Communications Decency Act Section 230 action at the FCC, he said it seems clear the agency has authority to take action, but whether it should is less clear. Congress might take up Section 230 without the FCC, he said, and the agency isn't likely to move any item forward before it has a fifth commissioner. He was largely critical of municipal broadband, saying systems frequently require ongoing taxpayer subsidization. Muni broadband "has on occasion filled gaps in some areas," but it's not an effective systemic solution to unserved areas, he said. Asked who will be permanent FCC chair, Simington said he has no insider knowledge, but acting Chairwoman Jessica Rosenworcel “has been doing a fantastic job. We are transacting business at a nice brisk clip.” Aurora Insight CEO Jennifer Alvarez said this fall's 3.45-3.55 GHz band auction won't be "quite as high-priced" as the C-band auction because while both represent midband spectrum, 3.45-3.55 GHz has to be shared with incumbent users. Localities lawyer Jonathan Kramer of Telecom Law Firm said small-cell deployments are varying widely in density, with two to three per square mile in some jurisdictions and 30-plus in others. He said local governments have pressing interests in knowing the numbers, locations and designs, because they are "the ones who will live with these things the next 30, 40 years."
The upcoming 3.45 GHz auction and yet-to-be-scheduled 2.5 GHz sale are likely to get broad interest from smaller carriers, industry officials said during a Competitive Carriers Association virtual conference Wednesday. They warned that holding three midband auctions in a short time poses financial issues.
Making more spectrum available for such ISPs is as important as subsidies for increasing broadband, Wireless ISP Association President Claude Aiken said on a webinar Wednesday. “We need to have a multifaceted solution to getting incredibly high speed broadband … to 100% of Americans.” WISPA called for localizing spectrum policy, with more licenses for WISPs and other players “to supercharge competition” and get to 1 Gbps. Subsidies should focus on current providers, “resulting in significant savings today while still delivering evolutionary capabilities of the future,” the plan said. Aiken urged the FCC to offer smaller geographic licenses than proposed in the 3.45 GHz auction (see 2103170061). The partial economic area licensing model “forecloses participation by some of these smaller providers that serve rural communities today,” he said. WISPA wants use-it-or-share-it rules in future auctions, he said. Aiken said some WISPs need utilize unlicensed spectrum, though thousands of megahertz of licensed spectrum goes unused. Federal subsidies aren’t reaching the least populated, hardest-to-reach areas, he said: “We’re wary of programs that would subsidize connectivity in suburbia before it really gets out to rural America.” Infrastructure rules, especially on pole access, are important, he said. "All the money in the world isn’t going to do much good if you can’t get into a right of way or onto a pole or onto a tower.”
Commissioners approved 4-0 an item that moves the agency closer to a 3.45-3.55 GHz 5G auction starting in early October. A notice proposes a standard FCC auction, similar to the C-band auction, rather than one based on sharing and rules similar to those in the citizens broadband radio service band. The draft public notice got several tweaks, as expected, including offering 10 MHz rather than 20 MHz blocks, but keeps larger partial economic area-sized licenses (see 2103150052). Commissioners Brendan Carr and Nathan Simington concurred on parts of the order because of lingering concerns.
Aides to the other three commissioners have been working with the office of acting Chairwoman Jessica Rosenworcel Monday on possible changes to a public notice proposing rules for an October auction in the 3.45 GHz band, said FCC and industry officials. The order is expected to be approved 4-0. It could get a few tweaks from the draft, officials said. They expected discussions to continue Tuesday.
FCC Commissioner Brendan Carr laid out a “road map” for actions he hopes the regulator will take this year on spectrum, during an American Enterprise Institute webinar Monday. He wants the FCC to finalize broadband maps this fall, suggesting it focus on relatively basic ones that could be finished more quickly. Until maps are completed, the FCC is “a bit stalled” on launching a Rural Digital Opportunity Fund Phase II or 5G Fund auction, he said: “Congress provided us a lot of funding … to get that job done. … Then if we want to add to those maps over time, we should.” Carr expects continuing problems and “tough calls” to make more federal spectrum available for wireless. He hopes “we end up with the right leadership to push forward.” Carr said that if the FCC returns to Communications Act Title II rules for net neutrality, 5G could suffer. “You may bless an individual use case, but you could cast doubt” on others, he said. The challenge in the 12 GHz band, the subject of a January NPRM (see 2101130067), is mainly “a technical one,” Carr said. “If we can get 5G terrestrial use in 12 and continue to get the public interest benefits that come from this new generation of low-earth orbit satellites, that’s great,” he said. “That’s what the engineering at this moment is sorting through.” Carr wants a federal lands desk at the FCC on siting issues: “There’s not a ton that we have authority to do with respect to federal lands,” but a desk “would at least give people on the outside a one-stop shop to bring their issues.” Complete work on the 6 GHz Further NPRM, allowing very low-power devices to operate at 14 dBm, Carr urged. Schedule a 2.5 GHz auction as soon as possible, he said, and launch a proceeding to look at updating rules for the U-NII-2C band (5470-5725 MHz). “Equipment manufacturers don’t even bother to include the band in many 5 GHz Wi-Fi devices.”
AT&T has no regrets about the $27.4 billion it bid in the C-band auction and will have the cash flow to pay for the spectrum, CEO John Stankey said on CNBC Friday. Executives had a similar message during an investor/analyst day presentation. Verizon defended its C-band spending Thursday (see 2103110034).
T-Mobile and AT&T countered Dish Network arguments on FCC rule changes for a 3.45 GHz auction (see 2103090034), aligning them more closely with citizens broadband radio service rules. Filings were posted Thursday in docket 19-348. Others also made arguments before Wednesday’s sunshine notice. T-Mobile cited “DISH’s history of enriching itself while delaying the deployment of spectrum and services.” Dish proposes changes “that would limit competition in the auction for that spectrum and … relax the proposed build out requirements in a way that would delay deployment,” T-Mobile said. The proposal “would enable DISH to acquire the spectrum at artificially depressed prices without any legitimate justification or demonstrated ability to put it to prompt use,” AT&T said. AT&T supported Dish arguments in favor of a “coherent spectrum-aggregation policy,” saying “every provider needs nationwide mid-band spectrum in large contiguous blocks to compete effectively.” Dish didn’t comment. OnGo Alliance representatives raised concerns about interference for CBRS band users, in calls with aides to acting Chairwoman Jessica Rosenworcel and Commissioner Nathan Simington. They discussed problems for CBRS environmental sensing capability providers from “uncoordinated” 3.45 GHz operations and the need for “coordination rules,” the group said. ARRL, which represents amateur radio operators, urged the FCC to allow amateurs to continue using 3.3-3.5 GHz, in calls with commissioner aides and staff from the Wireless Bureau, Office of Engineering and Technology and Office of Economics and Analytics. “Amateurs have applied their technical expertise -- much of it acquired through self-training -- to use the bits and pieces of spectrum in the 3400 MHz band that are not used by the primary operators,” the group said. Ericsson urged rethinking the proposed two-step out-of-band emission limit, in calls with Office of Engineering and Technology and Wireless Bureau staff. “It would force the development of unique, U.S.-only products for the 3.45 GHz band, and would preclude use of globally harmonized … base station equipment,” the company said. “Extending elements of the CBRS framework is the best way to make the 3.45-3.55 GHz band available to a wider variety of users and use cases,” the Open Technology Institute at New America told Rosenworcel aides.