Lobbying intensified before an expected Wednesday sunshine notice on what model FCC members should approve March 17 for auctioning frequencies at 3.45 GHz, filings showed. Cable and satellite stakeholders were among those seeking changes to the auction draft rules so that bidding resembles that used in bidding for citizens broadband radio service airwaves. Others seek for the regulator to stick with the C-band auction approach, which is what the original draft that recently circulated would do.
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.
The Wireless ISP Association asked the FCC to auction the upper 40 MHz of the 3.45 GHz band by county, rather than by partial economic area, in calls with aides to Commissioner Geoffrey Starks and Nathan Simington. Other groups also sought smaller license sizes (see 2103040061). WISPA would leave the remaining 60 GHz to be sold as PEAs. “Using county-based licenses for the upper 40-megahertz will promote greater participation in the auction by smaller providers interested in obtaining licensed mid-band spectrum for rural coverage,” WISPA said. T-Mobile urged 10 MHz rather than 20 MHz licenses and sought a simplified out-of-band emissions (OOBE) mask. Adopting citizens broadband radio service rules wouldn’t work, the carrier said. “While CBRS-style rules support lower-power operations and may have been appropriate for the 3.5 GHz band because of the need to protect incumbent radars and to address coexistence concerns, those circumstances do not apply to the 3.45 GHz band,” T-Mobile said: It wants a 40 MHz limit on buys by any bidder. New America's Open Technology Institute asked a Starks aide to model rules on those for CBRS: “CBRS is already proving that an integrated band with both licensed spectrum and shared [general authorized access], operating under common technical rules, promotes innovation, competition and more localized deployments by a wide variety of ISPs, enterprise and other institutions.” The “unique issues that led to lower power levels in the CBRS band are not present here, and allowing power levels comparable to C-band will maximize the efficient use of the 3.45-3.55 GHz band,” the Competitive Carriers Association said in a call with an aide to acting FCC Chairwoman Jessica Rosenworcel. Proposed aggregation limits “will invite greater participation in the auction and promote competition by ensuring at least three licensees in each market,” CCA said. Lockheed Martin raised interference concerns for its three primary radar manufacturing and test facilities in New York and New Jersey. Filings were posted Monday in docket 19-348.
Stakeholders suggested changes to rules for a 3.45 GHz auction, in recent calls with eighth-floor FCC staff. Public Knowledge asked the agency to allow shared use of spectrum not sold in the auction. Rather than selling the licenses in a future auction, the commission should add them to the citizens broadband radio service database and “permit general authorized access (GAA) pursuant to the CBRS service rules,” PK said in calls with aides to Commissioners Geoffrey Starks, Brendan Carr and Nathan Simington. “Extend the CBRS framework on a more permanent basis into the 3.45-3.55 GHz band,” the group said: “Doing this will ensure valuable spectrum will be used without leaving GAA dependent networks stranded when licensees deploy.” Rationalize the CBRS rules with rules for 3.45 GHz, Dish Network urged: “Such an effort could provide the Commission with a win-win outcome that raises revenue for the U.S. Treasury … while preserving the investment-backed plans of the many entities that successfully participated in the CBRS auction." Offer county-sized, 10-MHz licenses, consistent with the CBRS auction, Southern Linc asked a Carr aide and staff from the Wireless Bureau, Office of Economics and Analytics and Office of Engineering and Technology. “In addition to nationwide, regional and rural service providers, the licensing framework for the CBRS band drew participation from electric utilities and other private network operators with a pressing need for spectrum to support operations that play a crucial role in the US economy,” Southern Linc said. Filings were posted Friday in docket 19-348. The FCC is unlikely to backtrack from acting Chairwoman Jessica Rosenworcel’s approach on the auction (see 2102240063), Cowen’s Paul Gallant told investors Friday. “Although the agency is currently split 2-2, we doubt Chairwoman Rosenworcel would have circulated it unless it was going to be adopted,” he said: “It would set C Band-like rules rather than CBRS rules that helped Comcast and Charter win 3.5 GHz spectrum last year.”
In support of appellants Northstar Wireless and SNR Wireless, Dish Network will argue that FCC denial of AWS-3 auction bidding credits to the Dish designated entities deviated from policy and precedent by creating "competitive inequities among participants in FCC spectrum auction processes." That's according to Dish in a notice of intent to participate (in Pacer, docket 18-1209) Thursday in the U.S. Court of Appeals for the D.C. Circuit.
Google, NCTA and 20 others urged leaders of the House and Senate Commerce committees Wednesday to address “current estimated costs to clear the 3.45 GHz band of federal users,” which “could jeopardize” FCC “ability to conduct a successful auction and meet its obligation to ensure that a wide variety of applicants have access to spectrum.” Commissioners vote March 17 on beginning an auction for early October (see 2102230065). NTIA in January estimated relocation costs “at more than $13.4 billion, meaning that the auction reserve price that bidders would have to meet in order for a successful auction would be nearly $15 billion, likely putting licenses out of reach for all but the three largest nationwide wireless operators,” stakeholders also including Comcast, Hewlett Packard Enterprise, Public Knowledge, the Rural Wireless Association and Wireless ISP Association said in a letter to Senate Commerce Chair Maria Cantwell, D-Wash.; ranking member Roger Wicker, R-Miss.; House Commerce Chairman Frank Pallone, D-N.J.; and ranking member Cathy McMorris Rodgers, R-Wash. “Wireless providers’ large financial commitments in the recent C-band auction and related build-out obligations make it all the more appropriate to encourage other sources of capital in a second mid-band spectrum auction in the same year.” Congress “should encourage the FCC to consider licensing policies akin to those adopted in the [citizens broadband radio service] CBRS band that could increase competition, lower costs for prospective new entrants, and better ensure that the benefits of 5G are enjoyed by all consumers,” the entities said. They want lawmakers to “work closely with NTIA, affected federal spectrum users, and the FCC to consider ways to refine and reduce the federal government’s relocation cost estimate.”
The FCC appears unlikely to hold a 2.5 GHz auction before mid-December, based on the deadlines in a notice in Tuesday's Federal Register, industry experts said. With the 3.45-3.55 GHz auction expected to start Oct. 5, the 2.5 GHz auction would likely follow.
"Incredible" proceeds of the C-band auction "changed the game somewhat" in federal spectrum management, greasing the path for more federal agency participation in sharing or relocation, FCC Commissioner Nathan Simington said Thursday in a Lincoln Network talk. The $81.2 billion in auction proceeds (see 2102180041) show how valuable some spectrum is to commercial operators, making it clear there will be ample funds available for spectrum relocation fund (SRF) uses and "mitigating somewhat" the pain of federal relocation from those bands, he said.
In an apparent win for carriers, acting FCC Chairwoman Jessica Rosenworcel is proposing a standard auction for the 3.45-3.55 GHz band, offering the big license sizes favored by national providers. The auction would start Oct. 5 and use an ascending clock format. The FCC also released its open radio access network notice of inquiry and public safety items for the March 17 commissioners’ meeting.
FCC acting Chairwoman Jessica Rosenworcel said 5G issues will be a focus at the March 17 commissioners’ meeting, circulating a draft order to start an auction of the 3.45-3.55 GHz band in early October (see 2102230046). She plans a notice of inquiry opening a “formal discussion” on open radio access networks, the FCC said Tuesday. Rosenworcel announced Monday commissioners will vote on rules for the $3.2 billion emergency broadband benefit program (see 2102220065).
Verizon dominated the record-setting C-band auction with $45.4 billion in bids, almost twice the $23.4 billion bid by AT&T, the FCC announced. T-Mobile was third at $9.3 billion, as it further buttressed its midband holdings. UScellular bid $1.3 billion. The auction started Dec. 8 and closed Feb. 17 at $81.2 billion after the assignment phase. That doesn’t include roughly $13 billion in accelerated clearing payments. The FCC sold all 5,684 spectrum blocks up for bid.