Satellite Bcstg. & Communications Assn. (SBCA) is “disappointed and concerned” with FCC ruling that will allow multichannel video distribution and data services to share spectrum with satellite companies in 12.2-12.7 GHz band. Group said ruling didn’t “appear to adequately reflect results” of independent tests for interference. “This decision is particularly difficult to understand in light of the fact that there is ample spectrum available outside” DBS band, SBCA said. It said it would wait to see text of order before determining whether future DBS subscribers would be adequately protected.
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.
House Commerce Committee Chmn. Tauzin (R-La.), ranking Democrat Dingell (D-Mich.) and 50 co-sponsors unveiled bill Wed. that would direct FCC to delay upcoming 700 MHz auctions indefinitely, tying future timing to resolution of other thorny spectrum issues. Legislation would delay June 19 auction of upper and lower bands at 700 MHz, requiring FCC within one year to report to Congress on proposed rescheduling. Proposal outlines panoply of other spectrum proceedings that await resolution and would instruct FCC to not hold 700 MHz auction until there was plan to resolve 800 MHz interference issues for public safety. Backed by bipartisan bill, CTIA late Wed. filed application at FCC seeking full Commission review of Wireless Bureau decision earlier this month that kept June 19 date intact. Prospects for companion bill in Senate appeared to be somewhat less clear, although Sen. Brownback (R-Kan.) told reporters Wed. he might support similar bill if administrative actions failed.
Another postponement of scheduled June 19 auction of upper 700 MHz band would require FCC “to ignore clear congressional directives,” Spectrum Clearing Alliance said in letter to FCC Chmn. Powell Mon. Responding to request by private wireless operators (CD April 17 p4), Alliance said further delay also “would undermine years of regulatory effort” to clear band of TV stations for nonbroadcast users and would “directly and substantially harm the interests of public safety agencies and the public generally.” In seeking postponement, Alliance said wireless operators’ request “is based entirely on… speculation” on future uses of 700 MHz, citing only “vague and uncertain possibilities” as justification.
Rural Telecom Group (RTG) told FCC it was ready to take Commission to court, along with others such as Paxson Communications, if 700 MHz auction were delayed beyond current statutory mandate. RTG said “any delay” of June 19 auction planned for Ch. 52-59 “will slow the delivery of spectrum-based services to rural America.” FCC now plans to auction both upper and lower bands of 700 MHz starting June 19. Earlier this month, Wireless Bureau turned down request by CTIA to postpone date. RTG said that for first time many rural phone companies are preparing to participate in auction because FCC has decided to auction portions of 700 MHz spectrum in metropolitan statistical areas as well as rural service areas (RSAs). “The use of RSAs will enable rural telecommunications carriers, who are committed to building out and serving less densely populated regions, to concentrate their attention on rural regions,” RTG wrote to FCC Chmn. Powell on April 22. “RTG members plan to use the 700 MHz spectrum to augment their current cellular systems for 3G capability and/or for wireless broadband applications and are anxious to acquire spectrum.” RTG said in letter that it suspects that calls by larger carriers for delay in auction “stem from financial concerns rather than spectrum clearing concerns.” RTG noted that in many areas of lower band of 700 MHz, particularly rural markets, spectrum is unencumbered by analog broadcasters, meaning spectrum could be used immediately for wireless applications. Group noted that FCC faces statutory mandate to deposit proceeds from auction in U.S. Treasury by Sept. 30 for lower band. “Even a slight delay in the auction to give Congress more time to pass legislation delaying the auction makes no sense when there is no clear consensus in Congress for a delay,” RTG wrote: “Last-minute legislation is speculative.”
Vincent McBride, who was small business bidder in NextWave re-auction, asked FCC Chmn. Powell last week not to delay June 19 700 MHz auctions, saying in April 19 letter: “Any further delay… undermines the Commission’s efforts to ensure that small businesses are given full opportunity to participate in the wireless industry. We ask the Commission to remain confident in the numerous small businesses, which have shown a high interest in the 700 MHz auctions.” Separately, wireless provider Southern LINC, which was formed by energy company Southern Co. in 1993 to provide land mobile radio service to affiliated electric distribution utilities, also backed delay. FCC Wireless Bureau turned down CTIA request earlier this month to delay June 19 start for upper and lower bands in that spectrum. Southern LINC is commercial mobile service provider that also serves public safety agencies and other users. In April 15 letter to Powell, carrier cited “open issues” that it said remained on 700 MHz spectrum, including availability of spectrum for 3G services and role that 700 MHz could play in improving public safety communications that now experienced interference at 800 MHz. “Because of these significant uncertainties surrounding the future of the 700 MHz band, prospective bidders have inadequate information on which to develop business plans, assess market conditions and evaluate the availability of equipment,” Southern LINC wrote.
Echoing legal concerns raised by FCC Chmn. Powell over 700 MHz auction earlier in week, FCC Comr. Abernathy said Fri. that “absent a statutory change, I believe it is responsible for the FCC to move forward with the auction of this band before the end of the year.” Speaking to reporters after speech at World Computer & Internet Law Congress in Washington, Abernathy didn’t rule out “very brief” temporary delay to give Congress time to weigh in on statutory deadline of Sept. 30, 2002, for lower portion of the band. “It’s a very difficult situation,” she said. “The question for us is how do you explain not following a statutory mandate.”
PGTV’s business plan “is long on promises but short on details,” and company doesn’t even plan to hire its first full-time employee unless it wins 700 MHz auction, Spectrum Clearing Alliance said in ex parte FCC filing opposing PGTV’s bid to delay auction (CD April 16 p5). “The mere possibility that PGTV might participate in and win the auctions and then one day provide new services in the band cannot justify the substantial harm that any delay of the auctions would cause to the expeditious provision of much-needed spectrum for public safety agencies and new commercial wireless services,” Alliance said. Group also said PGTV shouldn’t expect FCC to shelve 2 years of auction planning to launch rulemaking on changing 700 MHz power limit: “PGTV should bid for the spectrum first and then, if successful, request the changes necessary to facilitate its proposed service.”
Commerce Secy. Donald Evans urged FCC Chmn. Powell, in letter released Thurs., to postpone June 19 auction of 700 MHz band, even without congressional action. Writing on behalf of Administration, he warned that until there was more certainty about spectrum clearing, auction “would be premature and contrary to public interest.” While lauding recent FCC proposal for voluntary steps for accelerating DTV transition, Evans said: “Significant uncertainty remains today about the date on which the spectrum in those bands will become available for new wireless services.” He said Administration still believed legislative postponement of auction deadlines was “preferable” and that it would continue to work toward that. But he said FCC previously had “exercised its discretion” to delay 700 MHz auction and urged it “to do so again.” Evans’ letter came day after Powell testified before House Appropriations subcommittee that in absence of legislative change, he would be uncomfortable about delaying auction again and violating congressional mandate (CD April 18 p1).
FCC issued memorandum opinion and order Thurs. that, among other issues, rejected arguments that Commission shouldn’t consider use of band manager licensing in future for private wireless services. Decision, unanimously adopted March 14, addressed order and further notice on 1997 Balanced Budget Act changes to Sec. 309(j) and 337 of Communications Act. Action: (1) Reiterated that public safety radio services exemption of Sec. 309(j), which authorized FCC to award spectrum licenses through auction, applied to services and not specific users. FCC affirmed dominant use test previously laid out by Commission as way to ascertain whether particular service qualified for public safety exemption. (2) Retained mandatory 5-year holding period for modification of 800 MHz private land mobile radio service authorization to permit commercial use. (3) Affirmed earlier FCC decision that applicant must demonstrate there was no public safety spectrum available to “satisfy the public safety service use before it can be granted a waiver” under Sec. 337. On band managers, which FCC adopted for 700 MHz guard bands, Commission rejected arguments by several utilities that allowing band managers in utility bands such as 900 MHz appeared to be way to circumvent auction exemption for public safety radio services. “In essence, these entities equate band manager licensing with the use of competitive bidding, which they oppose in the private services,” Commission said, noting it had rejected such arguments in past. Objections of utilities are “premature” because FCC has said it would examine eligibility restrictions in future on service- specific rulemakings, agency said. FCC previously examined scope of public safety radio services exemption and how it would handle cases in which mutually exclusive applications were filed for public safety services. At that time, it concluded exemption applied to specific services, not users. Nearly dozen petitioners argued exemption should apply to specific users and that all private radio spectrum users who met terms of statutory exemption were “auction-exempt.” Energy companies Cinergy and Entergy, for example, argued that FCC lacked authority to conclude that spectrum allocated for use by utilities was subject to competitive bidding. Commission disagreed, noting that Congress specifically referred to “services” in statute. In other areas, United Telecom Council asked FCC to clarify certain spectrum issues for private wireless services, such as whether there would be future allocations for public safety and whether utilities, pipelines, metro transit systems and railroads would have access to existing public safety allocations. FCC said it could create separate designation for public safety services under Part 90, either by allocation or service rules, but it declined to speculate on amount of spectrum that would be available, saying it would be decided in specific proceedings.
Paxson Communications said Spectrum Clearing Alliance had added dozen new members since FCC Wireless Bureau last week turned down CTIA request to delay June 19 date for 700 MHz auction. Paxson, which has urged FCC not to delay auction for upper and lower bands, also contended that some wireless carriers were “eager to participate,” citing examples such as Council Tree Communications and Nextel. Council Tree, which is investor along with AT&T Wireless in Alaska Native Wireless, which had won spectrum in NextWave re-auction, recently urged FCC to not delay auction, citing interests of small bidders. But Nextel spokeswoman said that carrier hadn’t publicly stated position on auction date. She said she couldn’t comment on Paxson press release that she said she hadn’t seen. Paxson also listed board members to Spectrum Clearing Alliance elected at NAB convention. They included Andrew Hobson, Univision Communications; Lowell Paxson, Paxson Communications; Leon Brown, Clear Channel Communications; Walter Ulloa, Entravision Communications; Bennett Smith, Shop at Home; William Smith, Unicorn Communications; Benton Miller, Trinity Bcstg. Network; Christian French, WRNN-TV; Joe Kelley, Josie Park Bcstg. Alliance has planned to negotiate with 700 MHz bidders on compensation for broadcast incumbents and is working on “private market mechanism” for clearing Ch. 60-69.