WASHINGTON-The Federal Communications Commission’s review of the spectrum cap has turned
into a big vs. little battle with the Cellular Telecommunications Industry Association and most large wireless carriers in
favor of lifting the cap, while the Personal Communications Industry Association and smaller carriers argue it needs to
stay. The spectrum cap limits carriers to 45 megahertz in a given geographic area.
In November, the FCC began a
review of the spectrum cap spurred in part by a forbearance petition from CTIA. Congress established procedures in the
Telecommunications Act of 1996 that allow entities to ask the FCC to forebear from enforcing rules that have become
moot because of competition.
CTIA pushed for eliminating the spectrum cap, especially in light of the emergence of
third-generation wireless technologies. The spectrum cap “may impair wireless carriers’ ability to provide
services competitive with local exchange (carriers) and to provide [3G] wireless services with existing spectrum
allocations,” CTIA said.
PCIA disagreed. “The spectrum cap is a catalyst to competition in what is still
a young [personal communications services] industry. We don’t want the FCC’s hard-fought efforts to foster new
competition to start down a slippery slope,” said Mary McDermott, PCIA senior vice president and chief of staff
for government relations.
Not all players joined the warring associations. Omnipoint Communications Inc. said the
cap should be raised to 70 megahertz and D&E Communications Inc. said it could be “retained in all but the
largest urban markets.” D&E maintains an interest in a PCS system in central Pennsylvania.
