WASHINGTON-The Federal Communications Commission has been deluged with a slew of special-interest requests for 36 megahertz of prime spectrum that Congress wants sold this year, a scenario with logistical and policy challenges that offer regulators an opportunity to adopt the kind of flexible rules embraced by free-market advocates and disdained by many in industry.
While the 1997 flexible wireless auction turned disastrous after some bidders walked away with $1 licenses, the FCC nonetheless appears ready to give it another try.
Like it was two years ago, money is the driving force behind an accelerated flexible auction of frequencies in the 746-764 MHz and 776-794 MHz bands-formerly held by UHF-TV and considered exceptional for wireless propagation.
Congressional and White House budgeters, facing strict spending caps, want to raise $2.6 billion from the auction.
Under normal circumstances, the FCC-before issuing rules-would have time to carefully analyze the many comments filed by mobile phone, paging, dispatch and broadcast operators; private wireless users; public-safety officials; manufacturers; and others seeking access to the 36 megahertz.
But the FCC may not have that luxury.
House and Senate Department of Defense appropriations bills require the 36-megahertz auction be held this year, instead of after Jan. 1, 2001, as mandated in the 1997 balanced budget act.
The two fiscal 2000 DOD appropriations bills are before a House-Senate conference committee, and appear well on the way to passage.
Barring a presidential veto, the accelerated auction provision could become law in September. In addition to differences on how 36 megahertz rules should be crafted, the wireless industry is split on the issue of an accelerated auction.
Startup wireless carriers largely oppose holding the auction this year, while established carriers-like AirTouch Communications Inc.-see it as an opportunity to nail down more spectrum now for Internet-friendly, third-generation mobile phone service that will be offered in the next decade.
The combination of time pressures and competing spectrum demands for the 36 megahertz appear to give the FCC plenty of political cover to enact highly flexible rules, even though such an approach lacks widespread support.
Many wireless manufacturers, carriers and private wireless users have strong reservations about such a policy, a position based as much on self interest as on policy altruism.
“Motorola (Inc.) strongly believes that this laissez-faire approach to spectrum management does not serve the public interest in part because it inhibits manufacturers from devoting resources to develop products for the allocation,” stated the Schaumburg, Ill., wireless vendor.
Though Congress designated the 36 megahertz for commercial use, Motorola said the FCC should give consideration to well-documented private wireless spectrum requirements.
In addition, Motorola said the FCC should ensure public-safety communications operating on frequencies adjacent to the 36 megahertz are not interfered with.
“Notwithstanding the potential accelerated time frame for this proceeding, the commission must find a way to focus upon and promote rational spectrum policies that fully consider the dire spectrum needs of the private wireless community,” stated the Industrial Telecommunications Association.
The Personal Communications Industry Association, which represents paging, mobile phone and some dispatch operators, warned that a flexible service allocation will create regulatory uncertainty.
The American Mobile Telecommunications Association, the voice of dispatch operators, asked that a slice of the 36 megahertz be set aside for specialized mobile radio services and the rest be available to other wireless services.
SBC Communications Inc., a growing Baby Bell, urged the FCC to permit fixed, mobile and broadcaster uses of the 36 megahertz.
