WASHINGTON-The Federal Communications Commission is expected this week to announce it will consider lifting the spectrum cap-the restriction that a telecom carrier can control no more than 45 megahertz in a geographic area-at its Sept. 15 meeting.
A staff proposal suggests modifying the cap in rural service areas to 55 megahertz and allowing carriers in larger markets to ask the FCC to waive the cap if they can prove it is in the public interest. The FCC should also re-evaluate the spectrum cap in another two years, the staff reportedly suggested.
The FCC has wanted to the consider the issue at its September meeting, and it appears the agency will issue a final order.
About a year ago, the Cellular Telecommunications Industry Association petitioned the FCC to stop enforcing the cap. Under rules of the telecom act, the commission must rule on such a request within a year. However, the agency could get a 90-day reprieve from ruling on the issue if necessary.
The Personal Communications Industry Association has been fighting the CTIA request in a split indicative of smaller carriers, represented by PCIA, vs. larger carriers, represented by CTIA. PCIA believes the spectrum cap should be lifted at some point, but not today.
The five commissioners should begin voting this week, as soon as the sunshine notice is issued on Wednesday, whether to accept, change or reject the staff proposal.
The sunshine notice stops all outside contacts on agenda items. Until then, stiff lobbying will continue. Lobbying has already been going strong, with CTIA President Thomas Wheeler meeting with FCC Chairman William Kennard on Aug. 31.
The spectrum-cap decision is a good political tool for the FCC to decide now, industry sources believe, with PCIA’s trade show, PCS ’99, coming up later this month. If the cap remains largely in place, the FCC will be able to tout it has been listening to smaller carriers, some industry insiders said.
