CTIA Senior Vp. Govt. Affairs Steve Berry told reporters after Congressional Internet Caucus lunch Tues. that wireless industry wasn’t interested in altering “integrity” of 1999 Defense Authorization Act as part of proposed 3rd-generation wireless solutions. That authorization act had guaranteed that Defense Dept. spectrum couldn’t be taken away without military users’ being compensated for moving and given comparable spectrum. Industry isn’t interested in “repealing or significantly changing” 1999 act, possibility that Defense Dept. has raised in recent weeks as being problem if that’s part of 3G wireless legislation (CD June 6 p1). Instead, industry, which has been discussing 3G draft legislation on Capitol Hill, is working to meet DoD concerns that it be given more stringent safeguards that military users will be paid to move and that any potential transition out of existing spectrum would occur in phased-out manner that would protect operations, Berry said, in response to questions. “We're having really good discussions with DoD,” he said. He characterized as positive recent reports in defense trade press that U.S. Air Force had put price tag of nearly $3 billion on potentially moving some of its systems. Berry said he didn’t think it was likely that 3G bill would drop in Congress before July 4 recess. Extra time is positive because it means DOD “can get comfortable” with concepts in draft legislation, he said. Interest of industry is in bill’s moving forward on timeline that allows workable solution to be reached, Berry said. “Right now we want to keep our options open,” he said, reiterating that CTIA would like to see Administration push back July target for FCC to make spectrum allocation decision. That change can be made without budget scoring impact because delay in allocation decision wouldn’t have immediate impact on end date for auction, he said.
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.
Dept. of Defense (DoD) is developing draft legislation that would provide funding for upgrading military communications equipment, thus allowing it to vacate some spectrum for commercial 3G applications, House Minority Leader Gephardt (D-Mo.) said Mon. Addressing Computer & Communications Industry Assn. (CCIA) 2001 Washington Caucus, Gephardt said language soon would be shopped around Hill to both authorizers and appropriators, adding: “I don’t know how successful that will be in working its way through the House and Senate.” Gephardt outlined DoD’s plans after his formal speech, but in that speech he did make passing reference to 3G spectrum: “A lot of people recently have told me we need to move the Defense Department [from some potential 3G spectrum]. That’s probably a wise thing to do.”
AT&T Wireless, Cingular Wireless, Sprint PCS and Verizon Wireless urged FCC last week to defer grant of 2 GHz mobile satellite service (MSS) applications until after it seeks comments on March 8 New ICO filing. New ICO CEO Craig McCaw had sought FCC approval of plan that would allow him to develop terrestrial spectrum using radio spectrum allocated to MSS operators such as New ICO (CD April 4 p1). New ICO’s March filing raised concerns that “the MSS services as applied for may not be viable,” carriers told FCC Chmn. Powell in June 13 letter, citing commercial wireless industry’s keen interest in such spectrum for 3G. Wireless carriers want FCC to defer acting not just on New ICO’s request, but on all pending 2 GHz MSS applications. Carriers said New ICO had reached collaboration agreements with 2 other MSS applicants and that there was “uncertainty” in business plans of other applicants. If Commission decided MSS spectrum was suitable for terrestrial services, it must be auctioned, carriers said. “Action on these applications should be -- and must be -- deferred until the broad spectrum policy and license processing issues raised by New ICO’s fillings are addressed,” they said. Arguments raised in letter expand on those made by CTIA last month in petition for rulemaking that asked Commission to reallocate “underutilized” MSS spectrum for other uses, including 3G. Four wireless carriers disagreed with New ICO contentions that latter was asking for modification of its original license applications. FCC should respond to CTIA petition before it grants any 2 GHz MSS authorizations, they said. They argued that because New ICO’s request would be “fundamental” change in original application, FCC must seek comment on modifications. “By submitting proposed modifications to its system architecture as an ex parte filing in a rulemaking proceeding, New ICO has essentially disregarded the Commission’s application processing requirements,” wireless carriers wrote. Carriers also contended New ICO’s request would: (1) Undermine FCC’s policies on satellite construction and build- out. “In essence, New ICO now has told the Commission that it will not meet the milestones for construction of the MSS system for which it applied.” (2) Contravene existing allocation for MSS, which doesn’t allow domestic terrestrial use. (3) Go against “long-held practices and policies for satellite services.”
Wireless spectrum allocation legislation being developed in House would migrate Dept. of Defense (DoD) spectrum to private sector for 3G network deployment while ensuring that govt. gave adequate financial compensation to Pentagon for spectrum migration, aide to Rep. Pickering (R-Miss.) said. Pickering and House Telecom Subcommittee Chmn. Upton (R-Mich.) are reviewing draft 3G bill, but haven’t finalized language, Pickering’s Deputy Chief of Staff Mike Chappell said Fri. at Progress & Freedom Foundation panel in Washington.
First proposals on how to reorganize FCC under project led by Mary Beth Richards, who is special counsel to FCC Chmn. Powell, are due out this summer, she said Mon. Proposal is part of first phase of comprehensive FCC reform project spearheaded by Powell, and recommendations will focus on short-term changes suggested by Commission staff, industry, consumer groups and others, she told American Mobile Telecommunications Assn. (AMTA). Second phase of project is “much more comprehensive,” probably spanning 1-3 years and “completely changing the FCC along functional lines” rather than traditional divisions between buckets of technologies, Richards said. “So there is a possibility that at the end of it there will no longer be a Wireless Bureau, there will not be a Common Carrier, but there would be another bureau that deals with particular functions,” she said at AMTA annual leadership conference in Alexandria, Va. She cited spectrum management as one possibility and said it was too early to forecast any changes.
FCC is widely expected to issue Further Notice of Proposed Rulemaking to examine more closely spectrum beyond main MMDS and Instructional TV Fixed Service (ITFS) bands as part of 3rd generation wireless decision-making, several sources said. Among spectrum blocks likely to be rolled into further notice would be mobile satellite services (MSS) issues teed up at Commission in CTIA petition for rulemaking last month asking for reallocation to “more efficient uses” of “underutilized” MSS spectrum at 2 GHz (CD May 21 p5). One source said further notice could come as soon as next month. From outset of 3G decision-making process, FCC has said it would consider broader array of spectrum than just that at 2.5 GHz used by MMDS and ITFS operators, but controversy over incumbents that would be moved from those bands has received most attention in recent months. Meanwhile, Dept. of Defense continued to take hard line against reallocating military spectrum at 1.7 GHz to commercial uses.
With FCC target deadline fast approaching for making 3rd generation (3G) wireless spectrum allocation decision, Dept. of Defense continues to take hard public line on risks of sharing or vacating military-occupied bands for commercial users. Rear Adm. Robert Nutwell said on TechNet International 2001 panel Tues. that although relocating incumbent military users might be feasible -- given enough time and money -- strategy still would carry risks for Pentagon. Timing and finding comparable spectrum remain 2 large impediments, he said, calling 3G “number one” spectrum issue for DoD right now. He said DoD estimates of up to $4.3 billion in relocation costs were bit low. “I guess given enough time and money you could do almost anything,” Nutwell said of relocation option, saying main impediment was where comparable spectrum could be found. On timing, he didn’t budge from earlier DoD estimates it would take until 2010 to move nonspace systems from spectrum now occupied mostly by military, with satellite systems taking until at least 2017. “These are probably a little bit optimistic in terms of the actual time because typically satellites last longer than they were predicted to, so it could be even a little bit worse than this,” he told Washington conference.
ATLANTA -- Wireless industry could find itself in cross hairs of regulators that want to set framework on service levels, Verizon Wireless CEO Dennis Strigl warned at Supercomm 2001 here. “My greatest fear… is creeping regulation. We have to keep the service quality up so regulators are not tempted to intervene,” he said in keynote Mon. Part of wireless carrier’s problem is PR, he said. “Day after day, the headlines cover major disappointments. But how can they say we failed to keep our promises on new technologies when the rollout of 3G is still on schedule?” All of wireless industry is guilty of “overhyping and overpromising,” especially in timing of wireless data, Strigl said: “We have ignored the basics, something we can’t afford to ignore. The industry has overcomplicated the business for the customer and needs to simplify applications from their perspective.” Carriers want to leapfrog to wireless data but don’t want to deal with basics of business to deliver useful wireless applications, he said. Fundamentals have been neglected, he said, with inability to get service because network is congested, areas with no service at all, 20-min. waits for service, switches down, confusion over calling plans, confusion where it is legal or illegal to use cellphone while driving, bad roaming experiences due to inadequate SS-7 networks.
FCC Wireless Bureau denied petition for waiver of installment payment rules filed by Capital Two-Way Communications. Capital had won two 900 MHz specialized mobile radio licenses in 1996 auction. Licenses were cancelled automatically after Capital failed to make payment following 180-day grace period. “The Commission has repeatedly emphasized the importance of full and timely payment,” agency said. “Strict enforcement of payment rules enhances the integrity of the auction and licensing process by ensuring that applicants have the necessary financial capacity and that spectrum is awarded to those qualified bidders who value the spectrum most.” Bureau also said Capital’s petition didn’t present unique or unusual circumstances.
FCC Wireless Bureau granted extension to Dec. 31, 2002, from Aug. 12, 2001, of construction requirement for all major trading area (MTA) licenses in 900 MHz band. Order responded to requests for waivers filed by Nextel subsidiary and Neoworld. FCC rules require 900 MHz MTA licensees to provide coverage to at least 1/3 of licensed area within 3 years and at least 2/3 within 5 years. Licensees also can demonstrate after 5 years that they are providing substantial service. FCC granted most of specialized mobile radio licenses in that band after 1996 auction, meaning 5- year construction date for most licenses is Aug. 12. Top 3 bidders were Geotek, Nextel and Paging Network, although Geotek and PageNet subsequently filed for bankruptcy. Nextel and Neoworld then acquired MTA licenses from Geotek. PageNet later merged with Arch Wireless, which filed for FCC approval to assign former PageNet licenses to Nextel. Bureau granted approval of that transaction Fri., as well. Neoworld told FCC in waiver request it wanted to use licenses for national digital dispatch system but it couldn’t obtain equipment by Aug. 12 deadline. Bureau declined declaratory ruling for Neoworld on substantial service demonstration. Nextel, which holds 379 licenses in 900 MHz band, had told FCC it could build analog facilities to meet Aug. 12 construction deadline, but such nondigital systems would run counter to public interest. Extension was needed because of lack of 900 MHz digital voice network equipment, Nextel said. It said more time also would allow it to integrate 900 MHz spectrum into its existing national 800 MHz network and enable it to roll out pico cell technology to ease interference between 800 MHz commercial operations and nearby public safety systems. Bureau said it was in public interest to grant extension to all 900 MHz MTA licensees because carriers planned to introduce advanced digital systems but equipment wouldn’t be commercially available in enough volume to meet 5-year construction deadline.