WASHINGTON-Associations representing private wireless users do not see a need for the petition, filed late Friday by the American Mobile Telecommunications Association, urging the Federal Communications Commission to auction large chunks of spectrum in the 450-470 MHz band.
“[The Personal Communications Industry Association] does not favor auctioning 450-470 MHz spectrum … PCIA does not favor any additional changes to the 450-470 MHz band until the full benefits of the refarming proceeding have been realized,” said Don Vasek, PCIA director for government relations.
“If I were in [AMTA’s] shoes, I might have done this, too. Do I think it is a good idea? No, I don’t think it is a good idea,” said Mark Crosby, president of the Industrial Telecommunications Association. “Do I think the industry will think it is a good idea? No, I don’t think the industry will think it is a good idea. Do I think it will seize the day at the [FCC]? No, I don’t think this will seize the day at the [FCC] … [AMTA is] alone on this one,” he added.
Both ITA and PCIA would be directly impacted by the AMTA petition. The 450 MHz band is used by companies for private internal communications. Most have developed their own systems, but some use commercially operated systems.
AMTA represents the operators of these commercial systems. Many of AMTA’s members say access to additional spectrum is their most pressing concern.
The petition, a draft of which RCR obtained before its was filed, would:
“Divide all non-Public Safety Pool spectrum in the 450-470 MHz [band] into a two [megahertz] allocation for continued shared (use), including low-power, … and a 10 [megahertz] allocation for private and commercial geographic systems with licenses assigned by auction;
“Limit eligibility for one-quarter of the auctioned spectrum to private, internal applicants;
“Limit all auction applicants to one system per market;
“Require incumbents on auctioned spectrum to either relocate to remaining shared frequencies in this band or accept service and replacement equipment from new geographic licensees;” and
“Require geographic licensees to implement more spectrally efficient technology.”
The proposal could severely hurt the pocketbooks of PCIA and ITA since both groups derive revenues from frequency coordination. Frequency coordination would be necessary only on the two-megahertz blocks left, but would not be necessary on the 10-megahertz blocks to be auctioned, said
AMTA’s Jill Lyon.
PCIA said for fiscal-year 1998, spectrum-management revenues were 21 percent of total revenue.
ITA said that fees for frequency coordination for this band represent 30 percent of its budget.
The petition was filed separately from comments on an FCC notice of proposed rule making implementing the Balanced Budget Act of 1997. Those comments are due today. AMTA said it was necessary to file a separate document because “of the more revolutionary nature of the instant proposal.”
AMTA said assigning licenses by auction is the only option the FCC has open to it, but it leaves open the use of spectrum lease fees if such fees are approved by Congress. ITA has been pushing a bill that would give the FCC the lease-fee option, but it has yet to be introduced.
Additionally, AMTA reminded the FCC that it has said in the past that purchasing licenses at auction leads to more efficient spectrum use.
Efficient spectrum use is the nub of AMTA’s argument.
The 450 MHz band has been the subject of the tortured refarming proceeding as the FCC has tried to get the private wireless industry to use spectrum more efficiently. One thing the refarming proceeding did not do was give a specific date for when users must transition into more spectrally-efficient equipment.
“The absence of a date certain, coupled with a lack of economic and/or operational incentives to encourage licensees to deploy more efficient equipment, have doomed this laudable and much-needed initiative,” AMTA said in explaining why this portion of refarming has not worked.
