FCC Wireless Bureau will hold auction for C- and D- blocks of lower 700 MHz spectrum on Aug. 27, bureau announced Wed. While other blocks of lower band of 700 MHz spectrum auction were ordered delayed last week by Congress through Auction Reform Act, bill ordered C- and D-blocks auctions be conducted between Aug. 19 and Sept. 19.
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.
Tension between FCC Chmn. Powell and Comr. Martin is “extraordinary” and often complicates decision-making process at agency, according to lobbyists and others familiar with workings of agency’s 8th floor. Opinions vary on why 2 Republicans disagree fairly frequently. In interviews over last several weeks, some sources said it was because their regulatory philosophies varied greatly on many issues. Some called it personality conflict. Handful accused Martin of trying to grab power, view disputed by many other sources. Almost no one wanted to be quoted by name. “The problem is worse under the surface,” said source who described himself as “very informed.” He said “the problem is in the process. Even the routine becomes difficult with Martin’s office.” It won’t continue, he said, particularly since it has become public. “It’s one thing to squabble behind the scenes,” source said. “It’s unacceptable to do it in public.”
NextWave told U.S. Supreme Court in brief filed Fri. that FCC’s revocation of its PCS licenses for missed payment was “obvious violation” of Bankruptcy Code. Friend-of-court briefs included one by 7 members of Congress, including Senate Judiciary Committee Chmn. Leahy (D-Vt.) and ranking Republican member Hatch (R-Utah). In lengthy filing, bankrupt C-block bidder disputed arguments by Commission in its appeal of U.S. Appeals Court, D.C., ruling last year. FCC argued to high court earlier this year that nothing in Bankruptcy Code was at stake in D.C. Circuit’s NextWave ruling that barred agency from enforcing regulatory conditions on disputed wireless licenses. Sec. 525 of Bankruptcy Code bars govt. agencies from revoking licenses of debtor or bankrupt entity solely because they haven’t paid dischargeable debt. “The FCC’s only answer to the plain text of Sec. 525 is to spend page after page restating, in many guises, the single point that Sec. 525 should not apply because NextWave’s licenses were revoked for regulatory rather than pecuniary reasons,” NextWave said. “But Sec. 525 contains no regulatory exception for the FCC, express or implied, and creating one would be at odds with Sec. 525 and the code generally.”
CTIA proposal for dedicated public safety network using commercial wireless technology has drawn skeptical review from Assn. of Public-Safety Communications Officials (APCO). CTIA Homeland Emergency Response Operational Enhancement System (HEROES) would devote unspecified continuous block of spectrum for public safety uses. Commercial wireless technology could be used to create more efficient public safety network that would handle more users and foster interoperability, CTIA Pres. Tom Wheeler said. While APCO supports concept of more spectrum for public safety, commercial wireless technology architecture doesn’t necessarily fit well for public safety, said Robert Gurss of Shook, Hardy & Bacon, representing APCO.
Following what wireless industry called “Herculean effort” in Congress that passed legislation delaying 700 MHz auctions, FCC followed suit Wed. by postponing bidding and planning for much smaller auction this summer, as directed by Congress. After whirlwind of Senate and House votes derailed timing of lower 700 MHz auction late Tues., attention on Hill and industry turned to larger spectrum issues that new law buys extra time for policymakers to address, including proposed spectrum relocation fund, 3G viability assessment, 800 MHz reconfiguration proposals. Rep. Pickering (R-Miss.) told reporters Wed. that moving bill that would create trust fund to reimburse federal agencies that had to relocate from bands auctioned to commercial users was “achievable priority” this year. Industry sources said they also expected release shortly of viability assessment from Administration that could free up close to 90 MHz, rather than 120 MHz that industry had sought, for 3G services, with trade-off being that bands would carry assurances of being usable in relatively short term.
On eve of start of FCC auction for Ch. 52-59 spectrum, Senate late Tues. approved and House later also endorsed compromise legislation that would delay bulk of 700 MHz auctions indefinitely. Exception would be C- and D-block licenses in lower 700 MHz band, which have been scheduled with rest of lower band for today’s auction. Bill would delay auction of those licenses until at least Aug. 19 and bill would eliminate legislative deadlines for rest of lower and upper 700 MHz band. Senate approved bill by unanimous consent, clearing substantial hurdles such as threats of holds by rural senators and dwindling timeline to act before auction starts today (Wed.) for lower 700 MHz band. What 11th hour Senate passage of compromise bill means for FCC plans to hold bidding as scheduled wasn’t clear at our deadline, particularly with House passage and presidential signature still needed. Several industry sources had said that if Congress took last-min. action to derail all or part of lower 700 MHz band, Commission could delay start of bidding as late as Wed. morning, although what agency planned wasn’t clear at our deadline.
FCC filed in opposition at U.S. Appeals Court, D.C., late Mon. to emergency motion for partial stay by 2 state agencies that operate public TV stations. Central Wyo. College and Idaho State Board of Education had argued they were eligible to be exempt from auction of lower 700 MHz band because they were seeking spectrum for noncommercial educational broadcasting. Two agencies filed at D.C. Circuit last week after FCC didn’t act on June 12 request for similar action on auction that starts Wed. (CD June 17 p1). Central Wyo. and Idaho board sought partial stay that would affect only licenses in their state that they sought as part of lower 700 MHz auction. Commission argued that even partial stay of auction “would cause substantial harm” to many carriers that had qualified to participate. “The court should deny this last-minute motion to stay an important FCC auction that has been scheduled for more than three months,” agency said: “The motion was filed just 3 business days before the auction is to begin, even though the moving parties knew at least by May 8, 2002, that their plans to apply for this spectrum would be complicated by the scheduled June 19 auction date.” Commission also said 2 state agencies hadn’t shown that harm they might suffer if bidding went forward as scheduled would be irreparable. FCC said award of any licenses as result of auction would be subject to resolution of any pending petitions for review and “therefore could be undone if necessary.” Both state agencies were found not eligible to participate in auction by FCC Wireless Bureau. Bureau said licenses selected by these agencies are subject to resolution of pending issues raised by their applications, including determination of whether applicants for such licenses are noncommercial educational broadcast stations under provisions of Communications Act that stipulate competitive bidding authority doesn’t apply to such stations. FCC said in filing it decided on its own motion last week that noncommercial educational broadcasters aren’t eligible to apply for initial licenses for new services in lower 700 MHz band.
FCC decision on use of terrestrial repeaters is likely to determine fate of New ICO, Vp-External Affairs Gerry Salemme told us Fri. Past filings by company have said it couldn’t survive without Commission approval to use terrestrial spectrum for proposed satellite broadband service (CD May 31 p3). Project may be scrapped despite $3 billion investment, including $660 million from Chmn. Craig McCaw, ICO filings and McCaw have said in recent comments. McCaw has struggled with what to do with ICO after pulling it out of bankruptcy, industry sources said. Company has faced major opposition from wireless industry in effort to gain regulatory approval for revamped service, including Cingular, Sprint and AT&T. “We would be in a very difficult” position and we would have to “review our business plan,” Salemme said.
Agreement to delay spectrum auction was reached on Hill, according to draft of bill Communications Daily obtained. Spokesman for Senate Commerce Committee said amendment to delay auctions would be added as amendment to House Commerce Chmn. Tauzin (R-La.) bill that would delay auction (HR-4560). Bill says C- and D-blocks would go forward as early as Aug. 19, 2 months later than June 19 date now scheduled. Senate Commerce spokesman said Sens. Hollings (D-S.C.), Stevens (R- Alaska), Kerry (D-Mass.) and Ensign (R-Nev.) agreed to amendment. House Commerce Committee spokesman Ken Johnson said agreement was in place and Tauzin was “hopeful and optimistic” that issue could be resolved legislatively in next few days. Johnson said he couldn’t supply details of agreement. Spokeswoman for Stevens said he wanted agreement to include specific dates for FCC to hold auction, but didn’t detail what time frame was acceptable.
FCC approved notice of proposed rulemaking (NPRM) at Thurs. agenda meeting that for first time would allow commercial use of 71-76 GHz, 81-86 GHz and 92-95 GHz. Proposed rules would cover fixed point-to-point operations in that spectrum, which developers have been eyeing for rollout of gigabit-per-sec. broadband capacity with fixed wireless applications in areas where fiber capacity can’t reach easily. “The proposal we are making today will promote greater sharing between federal and non-federal users and encourage commercial deployment of technologies developed in military type environments,” said Office of Engineering & Technology Chief Ed Thomas. Potential uses of spectrum include high-speed wireless local area networks, broadband access systems and point-to-multipoint and point-to-point communications, FCC said. Spectrum now is undeveloped, although new technology developments have made commercial uses practical, officials said.