WASHINGTON-The Federal Communications Commission this week is expected to release auction and service rules that will make 30 megahertz of spectrum available for commercial use, setting aside six megahertz for private wireless use. If this happens, the Cellular Telecommunications Industry Association intends to sue because 36 megahertz of spectrum is available with the transition to digital TV and CTIA wants it all.
“This constitutes a de facto re-allocation and is subject to legal challenge. We are authorized to go to court,” said Brian Fontes, CTIA senior vice president for policy and administration.
The government is transitioning channels 60-69 (746-806 MHz) from TV use to other areas. Twenty-four megahertz was allocated for public-safety uses and 36 megahertz was set aside for commercial purposes.
The FCC plans to start auctioning this spectrum by April 25.
Since the 60-69 spectrum is considered prime real estate by the wireless industry, every sector has tried to convince the FCC to give it a piece of the pie. Proposals have included everything from using all of the spectrum for third-generation wireless to setting aside some spectrum for private wireless uses.
Congress has ordered the FCC to hold an auction for licenses to offer services using this spectrum and collect the money by Oct. 1. Due to this accelerated auction schedule, the time line for the 60-69 auction is six months shorter than normal.
By far, the most controversial item has been whether private wireless should gain access to six megahertz of spectrum.
“There is as much attention on the six megahertz as the rest,” said Thomas Sugrue, chief of the FCC’s Wireless Telecommunications Bureau.
The debate over the six megahertz was triggered when the FCC’s Office of Engineering and Technology agreed with public-safety concerns that out-of-band emissions could cause public-safety communications systems interference. A guard band concept was created, where public-safety spectrum would be protected.
Motorola Inc. and the Industrial Telecommunications Association suggested that spectrum could be used by the private wireless industry, noting private wireless systems are similar to public-safety systems so interference from private systems is less likely to be a problem.
In addition, private wireless users claim they are spectrum starved. ITA-which heretofore had objected to obtaining spectrum through auction-said it would participate in the auction if the spectrum was set aside for its use only and rules were structured so that only band managers could bid.
Band managers would be similar to frequency coordinators, except they would own the spectrum.
Freespace
Private wireless believes the concept will not work if others are also allowed to bid.
Enter Freespace Communications.
Freespace is developing a concept that will allow high-speed wireless Internet access, but it needs spectrum. It says it can meet any technical restrictions placed on the guard bands.
“In any event, we can meet the technical perimeters. This is a perfect fit,” said Freespace founder Mike Farmwald.
Freespace also believes private wireless systems waste spectrum.
“We think it is a ridiculous notion that valuable spectrum be used by private [wireless entities.] They are wasteful because they don’t compress and they have large cell sites,” Farmwald said.
Freespace has been vocal at the FCC about its plans, aggressively lobbying campaign that it should be able to compete for the guard-band licenses. Freespace doesn’t think it can prevail in an auction against large wireless companies vying for the other 30 megahertz, said Farmwald.
Bliley’s ire
The controversy has gotten the attention of the chairman of the House Commerce Committee.
Rep. Thomas Bliley (R-Va.) sent a letter to Kennard asking a series of questions that would require the FCC to defend allowing private access to this spectrum.
“Congress (and, in particular, the Committee on Commerce) carefully crafted the spectrum-related provisions in the [1997 balanced budget act] to ensure that the spectrum reallocated therein would be put to its most intense and efficient use. Toward that end, [the budget act] explicitly directs the [FCC] to reallocate 36 [megahertz] of [the 60-69 spectrum] `for commercial use,’ ” Bliley said in his letter.
Kennard is required to respond to the letter by tomorrow.
“The burden is upon the FCC to justify why private would better protect public safety than commercial uses,” said a staffer at the House Commerce Committee.
Other issues
There seems to have been little debate over a number of other issues regarding the channels. Today it appears the spectrum cap would not apply to the 60-69 spectrum.
If six megahertz is kept aside for the public-safety guard bands, then the current plan is to license one block of 20 megahertz of spectrum (a pair of 10 megahertz blocks), and one block of 10 megahertz (a pair of five megahertz blocks).
This would seem to allow two competitors in each market. This was another of CTIA’s concerns. In a letter last week to Kennard, CTIA President Thomas Wheeler said ideally three competitors would be licensed in each area but at least two would be necessary.
“No fewer than two licensees in each area-From the earliest days of [FCC’s] policy on wireless, there has always been at least two competitors in each spectrum plan. Under no circumstances should the 36 megahertz being auctioned be awarded to fewer than two licenses for each license area,” Wheeler said.
