LAS VEGAS -- NAB and the Assn. for Maximum Service Television (MSTV) will tell the FCC that it shouldn’t allow unlicensed spectrum devices into broadcasters spectrum until the DTV transition is complete, David Donovan of MSTV said at the NAB convention here. The FCC has an inquiry under way on unlicensed devices in the broadcast spectrum, with comments due April 17. Donovan said at this point there was very little room for unlicensed spectrum in the broadcast spectrum, particularly in large markets. “The last thing we want is more victim receivers,” Donovan said. Bruce Franca of the FCC said there were some unique features of the broadcast frequencies that made it worth studying for unlicensed usage. “We think these technologies can use these bands,” he said, stressing that issue still was under study. “The most important goal for us is to protect the existing usage of the band.”
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 Communications Assn. (WCA) petitioned the FCC for reconsideration of part of a recently adopted proposal that would move away from a broadcast-style regulatory approach for the Instructional TV Fixed Service (ITFS) and Multichannel Distribution Service (MDS). WCA urged the FCC to reverse its decision that immediately froze the filing of applications for new or modified ITFS and MDS facilities. The FCC opened what it called a “comprehensive” examination of MDS and ITFS rules to promote competition and investment in wireless broadband services. WCA asked the FCC to limit the applications freeze so it would ban only ITFS stations located outside of existing protected service areas that essentially would be seeking licenses for ITFS “white space” or unassigned spectrum. “WCA is not questioning the Commission’s authority to suspend the filing of applications for new or modified facilities,” the petition said. “However, it does question the wisdom of that action under the circumstances present here.” The group argued that although the FCC’s review of the ITFS and MDS rules was designed to encourage competition and investment, a freeze on applications for new or modified stations would be “contrary to those objectives.” WCA said the scope of the freeze wasn’t clear because part of the decision talked only about freezing ITFS applications but elsewhere it referred to MDS stations. WCA said it agreed applications to serve unassigned ITFS spectrum shouldn’t be accepted until the Commission had finalized rules for auctioning unassigned ITFS spectrum. “Despite the well-documented difficulties associated with licensing MDS/ITFS facilities that can be used to deploy wireless broadband services, a small but not insignificant number of system operators have chosen to undertake the costly and unnecessarily burdensome licensing process rather than await new rules,” WCA said. “The Commission’s impositions of a freeze threatens to leave a wide variety of interests in the proverbial lurch,” WCA said. It said unless the freeze was lifted: (1) Licensees wouldn’t be able to deploy new wireless broadband wireless systems. WCA said 24 wireless broadband systems had been under development for a 2003 rollout, but couldn’t emerge because of the application freeze. (2) Capital expenditures in the wireless broadband sector would be put on hold as investors reacted to the uncertainty of the freeze. (3) Pending acquisitions of MDS licenses and leases of ITFS excess capacity would be put off until new entrants could open facilities. “WCA is aware of at least 2 transactions ready to close within the next 2 weeks where the acquiring party is threatening not to close because of the freeze.” (4) Operators of existing wireless broadband systems would be unable to add cells or conduct upgrades at existing cells to expand capacity. “As a result, operators will be unable to serve consumers for no other reason other than a lack of network capacity,” WCA said.
Outlining changes under examination in the FCC’s spectrum regulatory regime, Wireless Bureau Chief John Muleta in a speech Thurs. stressed spectrum access and flexibility but said such reforms couldn’t be viewed in a vacuum. Addressing the Land Mobile Communications Council (LMCC) annual meeting in Washington, Muleta said one challenge the bureau faced in contemplating changes teed up by last fall’s Spectrum Policy Task Force report was to assess “the applications that can ride on this spectrum and then make the access to spectrum available.”
The House Telecom Subcommittee plans to mark up the spectrum relocation trust fund legislation April 9, following a hearing last week in which Pentagon officials expressed concerns about timetables. The proposed Commercial Spectrum Enhancement Act, by subcommittee Chmn. Upton (R-Mich.), is considered key to clearing Defense Dept. incumbents from spectrum earmarked for advanced wireless services. Last year, the Defense Dept. agreed to clear most of the 1710-1755 MHz band, which is part of 90 MHz being made available for advanced commercial wireless services. Stephen Price, deputy asst. secy. of defense for spectrum, said at a subcommittee hearing last week that DoD would need more time than allotted in HR-1320 to evaluate spectrum relocation. Current law requires commercial entities to reimburse federal users for the costs of relocating from reallocated spectrum. The proposed spectrum relocation trust fund would change the current system of direct payments from commercial entities to federal agencies to a central relocation fund financed from auction receipts. The markup will be at 10 a.m., Room 2123, Rayburn Building.
House Telecom Subcommittee ranking Democrat Markey (Mass.) reintroduced legislation Thurs. to create a “spectrum commons” for the public through unlicensed spectrum. The spectrum allocations are designed to provide more room for Wi-Fi, Bluetooth and other wireless protocols, he said. Markey said opening such spectrum would create more spectrum efficiency as well as spur innovation. “The ’spectrum commons’ will also help to propel economic growth and innovations by opening up the airwaves to new marketplace entry by individuals and entities unaffiliated with established network providers, such as incumbent cable, telephone or wireless carriers,” Markey told the House.
NEW ORLEANS -- The Bush Administration is close to releasing a proposed bill that would give the FCC authority to set user fees on unauctioned licensed spectrum, which was part of the White House’s budget package for fiscal 2004, NTIA Dir. Nancy Victory said at the CTIA Wireless 2003 show here late Tues. She also said NTIA was “actively” examining whether fees or some other incentives could help increase the efficient use of govt. spectrum, although the agency hadn’t reached any conclusions on whether such a system would be workable. On the same panel, FCC Comrs. Abernathy and Adelstein said the agency’s Spectrum Policy Task Force report, while proposing potentially major changes, wasn’t taking a one-size-fits-all approach to spectrum management.
As expected, House Telecom Subcommittee Chmn. Upton (R- Mich.) introduced legislation to create a spectrum reallocation trust fund. His proposed Commercial Spectrum Enhancement Act (HR-1320) would create a fund for agencies that relocated spectrum options to a different band or switch to non-spectrum-dependent facilities to transmit telecommunications. The trust fund would be created from spectrum auctions that must total at least 110% of the total estimated relocation expenses, Upton said: “There is a tremendous need for this bill. We must relocate federal government incumbents to comparable spectrum in order to make way for the commercial wireless industry, but the road to relocating government entities to comparable spectrum is unpaved and filled with potholes.” He said. “This legislation would pave that road, establishing procedures to ensure a timely, certain, and privately -- yet fully -- funded relocation of federal incumbent to comparable spectrum.” The Bush Administration included the trust fund in its FY 2004 budget and Upton introduced similar legislation late last year. Co-sponsors include Commerce Committee Chmn. Tauzin (R-La.), Reps. Towns (D-N.Y.), Boucher (D-Va.), Terry (R-Neb.), Green (D-Tex.). Senate Commerce Committee Chmn. McCain (R-Ariz.) has said he will introduce comparable legislation in the Senate.
The FCC Thurs. approved a proposal that teed up far- reaching questions about how Instructional TV Fixed Service (ITFS) spectrum should be regulated, including the controversial issue of whether educators should be able to sell licenses. Less contentious are parts seeking feedback on potential changes that would move away from a broadcast- style regulatory approach for ITFS and Multichannel Multipoint Distribution Service (MMDS) bands to one that would speed deployment of next-generation systems for wireless broadband. The notice looks at expanding access to the spectrum with options such as auctions, provisions for unlicensed uses and rule changes that would put into effect a previous decision to add a mobile allocation to the band.
FCC released filing requirements, minimum opening bids and other procedures for the May 28 auction of licenses in the lower 700 MHz band. In Jan., the Wireless Bureau had pushed the start date of the auction of these licenses from April 16 to May 28 to provide additional time for bidder preparation and planning. The spectrum to be auctioned includes 251 C-block licenses at 710-716 MHz and 740-746 MHz. Also included are 5 D-block licenses at 716-722 MHz, which had been unsold in the lower 700 MHz auction that closed in Sept. Last year, the FCC adopted allocation and service rules for the lower 700 MHz band, reallocating the entire 48 MHz there to fixed and mobile services and retaining the current broadcast allocation for new broadcast services and incumbents during the DTV transition. FCC will hold an auction seminar on April 2, with short form applications due by April 11. Upfront payments are due May 2, with a mock auction set for May 22.
Senate Commerce Committee Chmn. McCain (R-Ariz.) said he would introduce spectrum reallocation trust fund legislation “in the near future.” He made the announcement during a hearing Thurs. on the future of spectrum policy. His proposal will be designed to pay relocation costs of federal spectrum users that are forced to move to different spectrum.