WASHINGTON-The regulatory landscape for the personal communications services industry is
dominated not by issues that are PCS-specific but by issues impacting the entire commercial mobile radio services
industry.
“Even though there may be some rules that are different (for PCS carriers than for cellular carriers),
I think the industry (as a whole) has benefited (more) from the 1993 creation of the commercial mobile radio services
(distinction),” said Brian Fontes, senior vice president for policy and administration for the Cellular
Telecommunications Industry Association.
Wireless issues such as spectrum caps, digital wiretap implementation
and the cost of regulatory mandates will dominate the regulatory landscape in the coming months.
The only issue
that seems to be geared toward the PCS industry is the re-auction of C-block licenses, set to occur later this month.
“One of the big developments is the re-auction of the C-block licenses … It really doesn’t matter how many
participate because (Global System for Mobile communications) carriers will be active” trying to fill in holes in
their networks, including Chicago and Dallas, said Mary McDermott, senior vice president and chief of staff for
government relations for the Personal Communications Industry Association.
If more cellular carriers gobble up
PCS players at auction, more consolidation could occur, which could lead to even further melting of PCS and cellular
services.
While most issues are not PCS-specific, the wireless industry speaks with more than one voice to policy
makers. Indeed, on the issue of spectrum caps, the two major trade associations are on opposite sides.
Spectrum
cap
CTIA has asked the FCC to “forebear” from enforcing the spectrum cap, which restricts the amount
of spectrum a carrier may control in any given geographic area to 45 megahertz. The FCC must rule on the CTIA
request by the end of the year.
PCIA favors maintaining the spectrum cap, arguing in a recently submitted report to
the FCC that PCS carriers have “minimal market share in the vast majority of the top 200 markets.” To
back up this claim, PCIA submitted a study by HAI Consulting Inc. using data from Telecompetition Inc. (See chart at
right.)
Portability
At one point, the cellular and PCS industries differed on the issue of wireless number
portability, with PCS carriers arguing number portability is necessary for competition. Portability allows customers to
keep their telephone number when switching carriers. The FCC has maintained local number portability is necessary
for competition to develop.
In the end, however, PCS carriers joined cellular carriers in claiming WNP is not
necessary for competition and the amount of money it would cost makes it prohibitive. Last month, during the CTIA
convention in New Orleans, the FCC granted CTIA’s forbearance petition on WNP until the end of the PCS buildout in
November 2002. WNP could be re-imposed on all wireless carriers before November 2002 if the FCC deems WNP to
be necessary to conserve numbers.
Wiretap wars
The implementation of the Communications Assistance for
Law Enforcement Act of 1994 has particular concerns for PCS carriers because of a grandfather clause that requires
government to reimburse telecom carriers for CALEA-related upgrades to equipment in place before Jan. 1, 1995. Any
equipment in place that has not been upgraded significantly and that the government chooses not to pay to be upgraded
would be considered in compliance.
PCS carriers want the date extended because they did not exist in 1995.
Without a technical standard, these carriers argue, it would have been impossible to put in place CALEA-compliant
equipment. The FBI has not been so generous, saying carriers should have built out their systems to the FBI’s view of
the functional requirements.
The FCC has no control over the grandfather date. “We’re back up on the Hill
talking to Congress. It seems to us that having the FCC act on the technical standards is important,” PCIA’s
McDermott said. However, she noted Congress is reluctant to act on extending the grandfather date while there is so
much uncertainty.
Other issues
The costs of regulatory mandates greatly concern the wireless industry, including
PCS carriers. Issues such as 911 implementation and disability access cost carriers money to put into place. The
industry wants the FCC to consider these costs when they impose such mandates, but the FCC maintains some
regulation is necessary for the common good. “Competition is great to get us to lower prices and consumer
responsiveness, but if there are some things that competition won’t get us, then intervention may be necessary,”
said Thomas Sugrue, chief of the FCC’s Wireless Telecommunications Bureau.
