WASHINGTON-Wide-area specialized mobile radio operators and broadband personal communications services licensees now will be subject to the same resale rules under which cellular carriers have been operating since 1983.
The Federal Communications Commission June 12 adopted interim rules that would prevent PCS and enhanced SMR providers from restricting resale on their networks or to “unreasonably discriminate against resellers.” Small SMRs and radio common carriers were not included in this docket.
The commission’s resale ruling will allow new carriers in the process of building out their networks to resell services using an incumbent’s network. “Record evidence also suggests that resale is an established proactive with regard to most other commercial mobile radio service licensees, and competition appears to be vigorous,” the FCC stated.
“This is taking another pro-competitive step toward telecom bill goals,” commented Commissioner Susan Ness. “We don’t want to put any artificial constraints on these carriers. This will encourage facilities-based competition instead of competition based on arbitrage.”
Commissioner Rachelle Chong agreed. “I watched resale flourish in the cellular arena, and it helped waylay the headstart problem.”
The new edict will enjoy only a short period, as it is scheduled to sunset five years after the last broadband PCS licenses are issued. “The commission expects that the availability of numerous facilities-based suppliers of wireless services will make the condition unnecessary at that time,” the FCC’s statement added.
Despite the commission kudos, the National Wireless Resellers Association reacted explosively to the sunset clause. “This is a disappointment to the small business community, and it flies in the face of congressional intent,” said David Gusky, president. “The only way small business can get into wireless is through resale. While we appreciate the new rules on PCS, they are virtually negated by the sunset.” Gusky said the same people who controlled cellular will end up controlling PCS, and resellers could be left out if mandates are discontinued.
FCC Chairman Reed Hundt told RCR, “They’ve got their worries ahead of the realities. If there is not enough competition in the marketplace at the end of five years, they can make a case to extend the sunset rule. But the burden of proof will be on the resellers.”
