WASHINGTON-A confluence of factors are converging that may force the Federal Communications Commission to relax the commercial wireless 45 megahertz spectrum cap, an antitrust check that some feel has outlived its intended purpose and even may be hindering wireless industry development.
The emergence of mobile phone competition, the prospect of wireless carriers competing with landline phone companies and the global development of third-generation wireless technology have called into question the utility of the spectrum cap.
The Cellular Telecommunications Industry Association last week petitioned the FCC to forbear from enforcing the spectrum cap, which was adopted in 1996 under former FCC chairman Reed Hundt at the time when the agency was in the process of transforming a duopoly cellular phone market into a competitive one with the introduction of five new personal communications services licenses in each market.
The spectrum cap is intended to keep the broadband commercial wireless market competitive by preventing carriers from controlling too much spectrum in any one market.
“Forbearance from the CMRS [commercial mobile radio service] will permit carriers increased flexibility to provide service more efficiently in response to consumer demand; ensure the continued deployment of advanced technologies and innovative services; and allow carriers to position themselves more readily as local service competitors, without sacrificing either the commission’s regulatory authority or its CMRS policy goals,” stated CTIA.
On a separate track, a federal appeals court here is considering BellSouth Corp.’s challenge of the spectrum cap rule. Oral argument was held a week-and-a-half ago.
There are signs the FCC is open to relaxing the rule.
“There are reasons related to the new market that suggest, without predicting an outcome, that it’s time to re-examine the cap and see what makes sense for the commission to do in the future,” said Dan Phythyon, chief of the FCC’s Wireless Telecommunications Bureau.
Phythyon said the bureau is drafting a notice of proposed rule making and hopes to have it before the commission by the end of the year.
CTIA’s forbearance petition has the effect of forcing the issue, since the FCC must respond to such filings within a year’s time.
Meanwhile, the FCC is exploring spectrum implications of 3G. Some have suggested to the FCC that nearly 500 megahertz will be needed to support a 3G mix of voice, data and multimedia services.
In comments filed with the FCC last week, the two major commercial wireless trade associations staked out decidedly different positions on the migration path to 3G.
CTIA emphasized the need for spectrum cap liberalization and was largely silent on the question of a new 3G spectrum allocation.
“As part of its policy on third-generation wireless, the commission should preserve carriers’ ability to use their current spectrum licenses and spectrum already allocated for CMRS to advance new telecommunications technologies,” said CTIA.
The Personal Communications Industry Association said some 3G services can be accommodated in the existing 800 MHz cellular and 2 GHz PCS frequency bands. “However, if consumers are to benefit from the full menu of 3G applications, new allocations will be necessary in the United States,” said PCIA.
