WASHINGTON-In a marked change from the private wireless industry’s anti-auction stance, the Industrial Telecommunications Association this week expects to work out details of a proposal that would allow for-profit entities to become band managers of spectrum won at auction.
The outlines of the proposal were presented to 14 Federal Communications Commission staffers in an Oct. 4 meeting.
ITA, which represents the private wireless industry, historically has battled any auction-related concept, believing private wireless spectrum should be allocated without having to participate in competitive bidding. But in an effort to gain access to the spectrum in the 700 MHz band (746-806 MHz), ITA is changing its tune. The spectrum is available with the transition to digital TV.
“ITA would be remiss if it did not explore every possible opportunity to secure spectrum for its membership … The bottom line is … I need spectrum … and it would be great if it was at 700 MHz,” said ITA President Mark Crosby.
Crosby emphasized FCC staff was presented an outline, and the ITA board of directors expects to fill in details at a meeting later this week. Among issues to be decided are eligibility requirements for becoming a band manager. Crosby believes the auction should be set up so that only band managers would be allowed to participate. The band managers then could enter into contracts with private wireless entities to use the spectrum. Crosby would like rules established so the spectrum only could be used for private uses. “What good is it if it goes to [commercial mobile radio services]?” he asked.
Band managers would not need to be part of a frequency advisory committee but would probably need to enter into an alliance with one to help with coordinating activities, Crosby said.
The government is transitioning channels 60-69 from TV use to other areas. Twenty-four megahertz was allocated for public-safety uses and 36 megahertz is expected to be auctioned for commercial purposes.
ITA said allocating six megahertz for private wireless use is compatible with the commercial use provisions of the Balanced Budget Act of 1997 because “neither the statute itself nor the relative conference report language specifically defines the nature of the `commercial’ services to be eligible for this allocation.”
Originally, the spectrum was not to be auctioned until 2001, but Congress, in its attempt to raise money to offset other priorities this year, has sent a bill to President Clinton for his signature that would require the auction be held before Oct. 1. The president has not yet signed the bill.
The Personal Communications Industry Association, which also represents the private wireless industry, has opposed auctions and expressed concerns about the band-manager concept, although the group believes some of the 60-69 spectrum should be allocated to private wireless users. PCIA’s private wireless section, known as the Private Systems Users Alliance, expects to consider ITA’s proposal at its November meeting, said Mary McDermott, PCIA senior vice president and chief of staff of government relations.
