Commerce Secy. Donald Evans met with wireless industry Thurs. on 3rd generation wireless issues, sending signal that all spectrum bands still were on table, sources said. Evans held hastily-called 30-min. meeting with wireless carriers and equipment manufacturers in advance of final reports that are set for release today (Fri.) from FCC and NTIA on options for additional spectrum for advanced wireless services. “The report that is coming out tomorrow is a first step in the process,” Evans spokesman said. Several sources indicated meeting appeared to be proactive step by Administration to allay industry concerns over serious questions raised by Dept. of Defense on challenge of sharing spectrum with commercial wireless systems in short term.
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.
FCC seeks comments by May 14 on notice of proposed rulemaking (NPRM) that starts process of tapping Ch. 52-59 in 700 MHz band for auction to wireless operators and other providers of advanced services. Reply comments are due June 4 for NPRM that Commission approved this month (CD March 19 p1). Item addresses lower channels in 700 MHz, which must be auctioned by Sept. 30, 2002, and are occupied now by broadcasters who face digital TV deadlines for leaving band. Broadcasters must vacate spectrum by 2006 unless certain service penetration criteria are met. Among issues on which proposal seeks comment are whether agency should consider ways to facilitate DTV transition ahead of deadlines to make spectrum available to successful bidders sooner. NPRM said possible applications for spectrum included mobile wireless, wireless local loop, video and multimedia. Proposal also would allow companies to obtain licenses in that spectrum to provide broadcast services, such as mobile TV. Comment is sought on “whether this broad allocation is appropriate.” FCC requested feedback on whether restrictions on allocation were needed to protect adjacent channel broadcast operations. As example, NPRM asked whether there was need for guard band or separate allocation at lower end of band limited to low-power service because TV channels would remain adjacent to band on Ch. 51. “Alternatively, would the 698-746 MHz band be more useful for fixed services than mobile services in light of the high number of incumbent broadcasters that operate on the spectrum?” On that point, proposal sought comment on whether “fixed services may be more successful than mobile services in structuring their systems to avoid interference with incumbent broadcasters.” Agency asked for comment on appropriate amount of spectrum for each license in 698- 746 MHz band, specifically whether it should be licensed as single 48 MHz block or in smaller increments.
PEBBLE BEACH, Cal. -- Because so few consumers get their TV over air, broadcasters may soon have difficulty justifying their continuing control of big block of spectrum unless they refocus on public service, analyst Thomas Wolzien said in speech opening NAB Futures Summit here Sun. Although he said figure probably was inflated by various factors, Wolzien said recent auctions indicated broadcast spectrum could be worth as much as $367 billion, even though total market value of all TV stations is only about $100 billion.
Verizon Wireless urged FCC to defer granting licenses won at C- and F-block PCS auction in Jan. until U.S. Appeals Court, D.C., rules on NextWave’s appeal. Verizon Wireless won $8.8 billion in licenses of $17 billion raised by auction, in which most formerly belonged to NextWave but were cancelled for missed payment. Earlier this month, NextWave asked agency to delay spectrum awards until D.C. Circuit issued opinion (CD March 13 p4). Verizon Wireless told FCC in its comments that nothing in NextWave request “requires the Commission to issue a stay.” But awaiting D.C. Circuit’s ruling on NextWave “before granting the applications, and allowing winning bidders up to 30 days after the public notice announcing license grants to submit their final payments, would serve the interests of interested parties and would not undermine the Commission’s goals for the re-auction,” Verizon said. It argued that agency had leeway to allow auction winners more than 10 days to pay balance of winning bids. “The presumptive period of 10 days is an unrealistically short window for bidders to amass and arrange for the transmission of billions of dollars to the Commission,” company wrote. Thirty days would provide more “reasonable time to plan,” company said. Verizon asked FCC to deny NextWave petition, which seeks deferral of auction or conditional approval. In other comments, Alaska Native Wireless (ANW), designated entity with financial backing of AT&T Wireless, challenged standing of TPS Utilicom. TPS had petitioned to deny ANW license applications, saying carrier had failed to comply with FCC rules on entrepreneur status and very small bidder status and that its application lacked “requisite candor.” ANW told FCC that TPS wasn’t party in interest on its applications because it was “eligible to bid on none of the 44 licenses for which Alaska Native Wireless has applied.” TPS didn’t present “specific allegations” needed to raise question of fact that would warrant delaying grant of applications, ANW said. It also disputed TPS contentions that AT&T Wireless had de jure and de facto control of designated entity.
Australia Communications Authority (ACA) raised $576.8 million from 3rd-generation wireless auction that closed Thurs., with Telstra making highest overall bids of $149 million. Australian govt. said Telstra won 15 MHz of paired spectrum in all capital cities, 10 MHz paired spectrum in regional areas and 5 MHz of unpaired spectrum in all capital cities. Other successful bidders included 3G Investments, Hutchison Telecommunications Australia, Optus Mobile, Vodafone Pacific, CKW Wireless. Australian officials said licenses allow successful bidders to determine technology that will be used and that winners have committed to using Wideband CDMA and cdma2000. ACA Chmn. Tony Shaw said winning bidders include new market entrant CKW.
LAS VEGAS -- Wireless industry pitches for more spectrum were almost as prevalent at NTIA convention here as wireless calls themselves. Customer demand for wireless spectrum will exceed supply by 2004 or 2005, Verizon Wireless Vp-Legal Mark Tuller said, and industry will need twice as much spectrum by 2010. He said increasing spectrum efficiency and technology couldn’t meet demand, and key sources were likely to be military spectrum (1755- 1850 MHz) and 2 GHz bands used by MMDS and ITFS wireless communications and educational TV services.
LAS VEGAS -- Key to wireless Internet success is “total package” of consumer value, not whether system is wide area protocol (WAP) based or i-mode or any other technology, said Takeshi Natsuno, exec. dir.-gateway business for NTT DoCoMo. NTT already has 21 million wireless Internet users in Japan, generating average of $20 revenue (plus voice fees) per month, with more than 800 companies providing more than 40,000 Web sites of Internet content adapted for wireless devices, he told CTIA convention here. Despite talk of delivery modes, other speakers agreed content was key for new service.
LAS VEGAS - Govt. should consider rebates or other restructuring of spectrum auction fees in order to create available capital to continue buildout of wireless networks, Motorola CEO Chris Galvin said in keynote session at CTIA convention here Wed. Galvin said rebates could be as large as 50% of auction fees paid by wireless carriers, and govt. also should restructure way future spectrum was allocated: “As any new technology is created, the rules and regulations need to be modified.”
LAS VEGAS -- Several Latin American regulators, speaking on prelude to CTIA Wireless 2001 show here, urged greater regional harmonization of wireless rules and frequency selections as policymakers wrestled with issues such as how to bolster universal service and roll out 3G. “We have not achieved total integration in Latin America to facilitate communications,” Argentina’s Communications Secy. Henoch Aguiar said, noting that in some cases it’s more expensive to connect between 2 countries in region than with callers elsewhere.
In long-awaited move to free up more spectrum for advanced wireless services, FCC approved notice of proposed rulemaking (NPRM) Fri. that begins process of tapping Ch. 52-59 in 700 MHz band for auction. Lower channels in that band must be auctioned before Sept. 30, 2002, one year after Sept. 12 auction for Ch. 60- 69. Commission approved item, with Comr. Tristani dissenting in part on voluntary band-clearing proposals to help relocate incumbent broadcasters ahead of 2006 digital TV deadline. FCC didn’t address budget blueprint by President Bush that would delay several wireless auctions, including proposed move of Ch. 52-59 auction until 2006.