CTIA told FCC, in comments filed last week on reallocation of Ch. 52-59 in 700 MHz band, that it wouldn’t be technically feasible for advanced wireless services to share spectrum with “full-power broadcast licensees.” Comments from wireless and broadcast interests on notice of proposed rulemaking (NPRM) came as recently passed budget resolution retained proposals by President Bush to push back auction dates for both upper and lower band channels of 700 MHz. Rulemaking would reallocate lower 700 MHz band from incumbent analog broadcasters to advanced wireless services. NPRM also proposed retaining broadcasting allocation, which could include what CTIA called full-power broadcast operations. CTIA said that in related auction proceedings for Ch. 60-69, agency had rejected possibility of sharing those frequencies by broadcast and advanced wireless services. “The same conclusion is applicable to the lower 700 MHz band with equal or even greater force, given the large number of broadcast licensees on this band,” CTIA said. “There are simply too many technical, operational and regulatory challenges associated with the sharing of spectrum by full-power broadcast and wireless licensees.” Group said there was “home” for terrestrial broadcast TV services on Ch. 2-51. CTIA also urged FCC to not apply spectrum cap to lower band, which would reflect Commission decision on how Ch. 60-69 would be auctioned to wireless carriers. In other comments, Leap Wireless recommended FCC license and auction spectrum in basic trading area or metropolitan statistical areas, rather than in larger regional areas or through national licenses, which are possibilities on which agency sought feedback. Reallocation of spectrum would be “meaningless” to smaller carriers that serve secondary markets if spectrum were to be auctioned in those larger blocks, Leap contended. Rural Telecommunications Group (RTG) offered essentially same message on importance licensing of “smallest possible geographic areas” to ensure that rural communities weren’t left behind. RTG also urged agency to “provide rural telephone companies with auction incentives,” particularly bidding credits. It said “Commission should establish strict build-out requirements to ensure delivery of service to rural areas and to prevent stockpiling or warehousing of spectrum.” Qwest Wireless said Commission shouldn’t license new broadcast-type services “given the ongoing presence of incumbents. Mobile and fixed wireless services continue to strive to reduce their operating power requirements.” Carrier told FCC that broadcast operations had viable alternatives “and authorizing such services on this spectrum risks burdening new mobile and fixed wireless services.” Qwest said that if FCC decided to allow services other than fixed and mobile wireless in that band, new broadcast-type services should be subject to same technical and service rules, “thus precluding high-power broadcast operations in the spectrum.”
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.
New ICO wants “regulatory flexibility, not new spectrum” with plan CEO Craig McCaw has offered to FCC, Senior Vp-External Affairs Gerry Salemme told us Thurs. “This isn’t an attempt to change the rules. We want to take the rules as they are written to optimize our spectrum to bring service to rural and remote parts of the world.” McCaw wants Commission to approve plan that would allow him to develop terrestrial spectrum using radio spectrum allocated to MSS operators, including New ICO (CD April 4 p1). Motient and Cellsat have offered similar plans to FCC. There has been strong opposition to Motient plan from wireless industry, including AT&T, but Cellsat is concerned about latest McCaw proposal because it has been waiting 7 years for license and doesn’t want proceeding delayed.
With decisions still pending on 3rd generation wireless spectrum, ITU Secy.-Gen. Yoshio Utsumi warned in Washington Wed. that U.S. “is at this moment left aside from the world trend” of 3G licensing. “Unfortunately, the U.S. doesn’t have secure frequencies for this service,” he said at PCIA news conference. “The development of 3G in the U.S. market is very, very crucial for the success of these services.” In separate interview, Utsumi told us he believed World Telecom Standardization Assembly (WTSA) in Montreal last fall and March IP telephony forum in Geneva had helped narrow “conception gap” on certain Internet policy issues between U.S. and other countries. In arena of ITU reform, he said recommendation would be made to ITU Council next month to create Satellite Backlog Action Group, nicknamed SATBAG, to focus on solution to satellite filings challenge that has faced ITU for years.
CTIA asked President Bush to give Commerce Secy. Donald Evans “sufficient time” to complete 3rd-generation wireless spectrum assessment by delaying pending auctions. Govt. has been working toward July 31 deadline that FCC faces for spectrum allocation decision under timelines set out by President Clinton in executive memorandum last Oct. Request to Bush came as speculation has grown that Commerce Dept. wouldn’t necessarily be prepared to craft 3G decisions within tight schedule of executive memorandum anyway. Last week, House Telecom Subcommittee Chmn. Upton (R- Mich.) said panel’s hearings on issue were delayed because department wasn’t ready to unveil its “game plan” (CD May 14 p1). “Previous Administrations ignored this [3G] issue until it finally reached crisis proportions, leaving your Administration to inherit the crisis and make the tough decisions,” CTIA wrote Bush.
Flurry of back-and-forth ex parte filings is continuing at FCC on 3rd generation wireless allocation issues. Catholic TV Network (CTN) took exception to contentions by Verizon Wireless that reallocating up to 60 MHz of Instructional TV Fixed Service (ITFS) spectrum for 3G wouldn’t harm incumbents. Verizon had argued segmentation of 2.5 GHz band occupied by Multichannel Multipoint Distribution Service (MMDS) and ITFS licensees would be possible. Verizon argued MMDS operators who lease ITFS spectrum have no long-term ownership rights. “Given the independent and interleaved nature of ITFS and MDS operations, it is simply ludicrous to argue that the Commission could reallocate the same 60 MHz of spectrum in every market with no adverse impact to incumbent licensees,” CTN said. Verizon comments “are simply another attempt to distract the Commission’s attention from Verizon’s true intention: to derail the deployment of a service that will directly compete with Verizon’s own DSL service.” Separately, in ex parte filing this month, Motorola outlined benefits of using 1.7 GHz band occupied by military for advanced wireless services. Company argued Dept. of Defense global training and operational requirements aren’t compatible with global use of 1710-1850 MHz band for commercial mobile services. Instead, filing said use of this band for 3G in U.S. would provide “global spectrum alignment.” Motorola said Commission shouldn’t pair 1710-1755 MHz with 2110-2150 MHz, in part because this would provide 85 MHz of spectrum, which isn’t enough to meet demand through 2010. Motorola said this pairing wouldn’t leave room for future growth using additional spectrum at 1755-1850 MHz. On issue of reimbursement of govt. users who relocate, Motorola acknowledged existing law guarantees reimbursement but it is subject to congressional authorization. Company advocated “streamlined process” that would identify costs before auction with “clear rights for both parties” and use of auction revenue to directly finance relocation. This plan also would allow federal users to modernize systems, Motorola said. Motorola contended DoD doesn’t have to vacate 1.7 GHz band altogether to make room for 3G. This could be averted by developing “system-by-system” solutions for accommodating govt. requirements and crafting solutions that would “consider realistic 3G requirements and DoD requirements,” Motorola said. How to attain global spectrum harmonization for 3G services was among issues that also emerged last week during European Institute roundtable on telecom and e- commerce in Washington. Veena Rawat, deputy director-gen. of spectrum planning and engineering for Industry Canada, said she was heartened that U.S. is considering 1.7 GHz for 3G because this would align with choice Canada has already made. “Before we talk about global harmonization we must harmonize with our neighbors here,” she said. Ruprecht Niepold, head of European Union’s mobile and satellite unit, also stressed importance of 3G harmonization, but said he expects more serious discussion about flexible spectrum allocation when attention turns to phasing out existing 2G services.
MDS America has “proved Northpoint system can co-exist” with DBS on day-to-day basis, CEO Kirk Kirkpatrick told us Wed. in interview on proposed plans for U.S. service. FCC issued experimental license to MDS America Fri. (CD May 7 p7). Company could offer new challenge for Northpoint and to DBS, which is opposed to allowing terrestrial services in 12.2-12.7 GHz band (CD May 8 p7). FCC is considering several spectrum-sharing options for satellite services, but Northpoint debate has been most contentious. MDS America, which competes with Northpoint, may end up as ally in proceeding (CD April 27 p7).
Some wireless technology developers are recommending FCC set aside 5 GHz of spectrum or more when Commission finalizes proposal for service rules for spectrum at 92 GHz. Expectation is that as early as this fall FCC will launch rulemaking, although industry already has been bouncing ideas off Commission for what developers would like to see in that spectrum. On issue whether band should be made available on unlicensed basis or via licenses, panel organized by Wireless Communications Assn. (WCA) has floated idea of hybrid approach that would license some segments and allow others to be unlicensed at more restricted power levels, said Donny Burt, vp-advanced technology, e-xpedient/CAVU. Among “last mile” technologies that can be offered in that band, developers said, are gigabit ethernet-based systems that can connect buildings and extend metropolitan area networks.
Verizon Wireless in filing at FCC balked at request by New ICO (CD April 4 p1) seeking flexibility to offer terrestrial mobile services using mobile satellite service (MSS) spectrum. New ICO sent letter to FCC Chmn. Powell last month suggesting that it would have to fold unless it received approval for new spectrum from domestic and international regulators. Verizon said request would violate Sec. 309(j) of Communications Act, which requires that spectrum used to provide commercial terrestrial services be auctioned. “New ICO received its MSS licenses for free,” Verizon said: “Given the enormous sums that Verizon Wireless and other mobile operators have paid for licenses, this would yield a tremendous windfall to New ICO and confer on them an unfair competitive advantage.” Verizon said New ICO’s suggestion that “MSS is no longer viable” should mean that spectrum be reallocated for advanced mobile services. Carrier said 1990-2025 MHz and 2165-2200 MHz have been identified internationally for 3G services. “Given the difficulty that the Commission is having in identifying spectrum for 3G, it should not overlook this obvious opportunity,” Verizon Wireless wrote. On other 3G issues, Verizon cited “flawed assumptions” in recent FCC report on use of 2.5 GHz band for advanced wireless services such as 3G. It said band segmentation was possible without harming Multichannel Multipoint Distribution Service (MMDS). “Importantly, MDS operators have no long-term ownership rights to leased ITFS [Instructional TV Fixed Service] spectrum,” carrier said. “Thus, a reallocation of some ITFS spectrum would not undermine their spectrum rights. Moreover, if MDS operators believe that they need additional spectrum to deploy broadband fixed services, they can bid in the auction.”
Nextel said Tues. it bought assets of Let’s Talk Cellular & Wireless for $32 million. Assets include bulk of company’s holdings, including 200 retail stores, national distribution center based in Dallas, hq in Miami, store inventory. Nextel said stores would remain open and convert to Nextel brand. Separately, Fitch affirmed ratings for Nextel’s senior secured bank facility and senior unsecured debt. Fitch cited company’s strong first- quarter results, including adding 500,000 subscribers in each quarter last year, average $73 revenue per user, low customer churn. It said rating also reflected expectation that company had enough spectrum to pursue its business plans. “Nevertheless, additional spectrum would enhance Nextel’s competitive position and improve capital efficiency,” Fitch said. “The primary opportunity for Nextel to acquire additional spectrum would be in the much-delayed 700 MHz auction, currently scheduled for September 2001.” Nextel shares rose 15% on Nasdaq Tues. to close at $18.69.
Following meeting last month on interference issues, satellite digital audio radio service (SDARS) licensees and Wireless Communications Services (WCS) operators don’t appear to be closer to agreement on terrestrial repeaters. In recent ex parte filings at FCC, XM Radio and Sirius Satellite Radio proposed rules that would cap number of high-power repeaters that could be deployed without first coordinating with WCS licensees. WCS licensee AT&T Wireless (ATTW) offered counterproposal, providing technical analysis that carrier said would demonstrate why SDARS plan still would cause interference to fixed wireless operations. XM submitted draft rule to FCC for terrestrial repeaters in effort to rebut concerns that repeaters operating at levels above 2 kw could cause interference. XM told FCC that AT&T Wireless “recently disclosed that its concerns with terrestrial repeaters are based on its having designed the front end of its receivers to tune to the entire 2305-2360 MHz band, covering both the WCS and the DARS band, and that it has no filtering to eliminate DARS transmissions in the 2320-2345 MHz band.” XM said it shouldn’t have to bear costs of AT&T’s “failure to adopt reasonable engineering practices.” Sirius raised similar arguments, saying WCS licensees should have used receivers with enough front-end selectivity to reject “the amount of interference that the rules already permit from nearby WCS operations.” XM proposed rule that would: (1) Put no additional limitations on low-power repeaters. (2) Define “medium-power” repeaters as operating between 2 and 10 kw. Such repeaters provide more targeted transmissions that increase power in given direction, using sectorized antennas and focus energy into relatively narrow beamwidth. Such antennas decrease probability that WCS base station would be located within that range. Every medium-power repeater would be coordinated with WCS licensees. (3) Limit to 250 number high-power repeaters, operating at 10-40 kw, that XM would operate without coordination. In Mon. ex parte filing, AT&T referred to meeting last month in which SDARS and WCS licensees exchanged technical data. SDARS licensees provided details on planned repeaters in Atlanta, Boston and San Francisco. AT&T said its interference analysis found: (1) If SDARS licensees operated terrestrial repeaters at levels of 10-13 kw each, “interference to the ATTWS fixed wireless base station would preclude the provision of service to more than 171,000 households in Atlanta alone.” (2) If SDARS licensees operated repeaters at 40 kw, interference to base station would preclude AT&T fixed wireless service to almost 435,000 households there. (3) If high-power repeaters were replaced with multiple standard power repeaters operating at 2 kw, SDARS licensees could “achieve the same coverage for their own service but reduce the size of the exclusion zone in Atlanta” by 43.2%. Carrier wrote: “Both sets of licensees paid for their spectrum at auction or in the secondary market. It is reasonable to expect that both services should bear the burden of establishing a viable co- existence.” AT&T urged FCC to adopt rule in which SDARS licensees could deploy terrestrial repeaters at peak power of up to 400 w/MHz, evenly distributed across band for total of 2 kw per 5 MHz. Proposal also would limit out-of-band emissions generated by SDARS terrestrial repeaters to levels specified by licensees that have less than transmitter power levels.