WASHINGTON-The Clinton administration last week cast doubt on large-scale sharing of spectrum designated for third-generation mobile systems, a development likely to shift the government’s focus to broadcast spectrum and to clearing military, educational, religious and broadband Internet licensees off the 1700 MHz and 2500 MHz bands to make room for 3G services.
Interim 3G spectrum reports, released by the National Telecommunications and Information Administration and the Federal Communications Commission last week in accordance with President Clinton’s Oct. 13 executive memorandum, were nearly overshadowed by highly critical remarks by FCC Commissioner Harold Furchtgott-Roth.
Speaking to reporters the day after the reports were released, Furchtgott-Roth blasted FCC Chairman William Kennard for walking in lockstep with Clinton’s directive rather than exercising discretion as an independent agency.
“I was flabbergasted the chairman of the FCC would participate in a joint press conference saying, `Of course, we will march, stand at attention and say, Jawohl!”‘ said Furchtgott-Roth, referring to the Oct. 13 press conference call on the presidential directive that included Kennard, NTIA head Gregory Rohde and White House staff.
The FCC was not immediately available for comment.
While government officials said the Pentagon and 3G mobile-phone carriers both might be able to use the 1755 MHz-1850 MHz band, they all but ruled out sharing the 2500 MHz-2690 MHz band. The 2500 MHz band is occupied by wireless cable TV, broadband Internet, educational and religious licensees.
The two bands, along with the 698 MHz-960 MHz band, were identified for 3G services at the June World Radiocommunication Conference in Istanbul. The Clinton administration, which has identified 3G as a top economic priority, faces a challenge not faced by other nations in that global spectrum earmarked for next-generation mobile services is occupied by thousands of licensees in the United States.
The International Telecommunication Union estimates an additional 160 megahertz is needed to support 3G services by 2010.
For the United States, the stakes couldn’t be higher. The global market for mobile devices that connect with the Internet and provide high-speed voice, data, video and multimedia services is expected to be worth billions of dollars, with business opportunities not only in industrialized countries but also in developing nations with poor telecom infrastructure. Some see 3G evolving into the next generation of the Internet.
“I said from the start this was going to be a challenging process,” said Gregory Rohde, director of NTIA. At the same time, Rohde said initial findings “don’t slam the door on anything. I think all the assessments are still on the table.”
The interim reports will be subject to comment and discussion as part of the government’s industry outreach program. The FCC will use its 2500 MHz study as the foundation for a 3G spectrum proposal later this year.
Final 3G spectrum reports will be released by March 30. The FCC will propose 3G spectrum, service and auction rules by July 30. Final rules will be issued by mid-December 2001. The 3G auction will be held in June 2002 and licenses issued by September the same year.
“In the 2.5 MHz band, it’s not workable,” said James Fisher, a spokesman for long-distance giant Sprint Corp.
While Sprint PCS is a top mobile-phone carrier, the parent company has invested $1 billion for licenses at 2500 MHz to provide fixed Internet services to residents and businesses. WorldCom Inc., the nation’s No. 2 long-distance company, also has spent $1 billion on fixed Internet licenses at 2500 MHz. Both firms claim fixed use of the 2500 MHz band furthers the local competition goal of the 1996 telecom act.
Travis Larson, a Cellular Telecommunications and Internet Association spokesman, said the trade group is encouraged the process is moving forward.
“At first blush, the report shows there are challenges involved with this issue and highlights the point that we all need to work together,” said Larson.
The mobile-phone industry is assembling a group of technical experts to assist the administration on the 3G project.
“We are encouraged the Commerce Department found there are possibilities for sharing spectrum used by the Department of Defense,” said Sprint’s Fisher.
While government officials said spectrum sharing and band segmentation may allow joint use of the 1700 MHz band by the Pentagon and 3G mobile-phone firms, they said making it work will require regulatory, technical and operational changes.
“The DOD recognizes this is a priority issue. … We’re not going into this thing, saying, `Absolutely not,’ ” said Linton Wells, principal deputy assistant secretary for command control, communications and intelligence at the Pentagon.
Wells said 3G spectrum initiatives will survive the change in administration, regardless of who occupies the White House.
When asked to elaborate, Wells said the studies would still be valid and useful going forward. Wells added he did not mean his comment to suggest whether the next administration will embrace the Clinton’s executive memorandum on 3G.
The Pentagon has tried to project itself as a willing team player, despite the fact that military top brass have battled with the mobile-phone industry in recent years over spectrum. In 1993, Congress ordered 235 megahertz of federal government spectrum to be freed up for emerging technologies in the private sector. The Pentagon was forced to surrender some spectrum, a setback that irks the military to this day.
NTIA’s interim report did not include spectrum analyses on a variety of military uses (precision guided munitions systems, aeronautical mobile applications that include high resolution video data links and land mobile video systems) of the 1700 MHz band.
Rohde said there was not enough time to complete those assessments.
Given the clouds hanging over the 2500 MHz and 1700 MHz bands for 3G sharing, the government is expected to shift its attention to securing alternative spectrum for 3G and to relocating users currently on the two bands.
Thomas Sugrue, top FCC wireless regulator, said the 3G spectrum proposal in December will seek comment on alternative bands-such as the 700 MHz and 1710 MHz-1755 MHz bands. Those bands were not identified by WRC-2000 for global roaming.
“It might increase our incentives” to move TV broadcasters off the 700 MHz band, said Sugrue. “We already have strong incentives right now.”
In October, FCC Chairman William Kennard proposed that TV broadcasters pay a “spectrum squatter’s fee” for use of analog spectrum held past Jan. 1, 2006.
Broadcast licensees each got a free TV channel to use during the transition to digital TV.
The administration is looking at analog TV spectrum-valued at $70 billion-for 3G mobile systems. But reclaiming spectrum from TV broadcasters and their powerful lobby will not be easy.
Relocating military, educational, religious and broadband Internet licensees on the 2500 MHz band to other frequency bands is not without obstacles either. First, finding spectrum for those users could be difficult in an environment of scarce airwaves.
“One of the bands is where FCC licensees are currently allocated and currently operating. It is very surprising to me and I am quite sure it is surprising to those licensees that the FCC will be conducting a study about the viability of creating entire new services in a spectrum band which they currently have license to. What’s going to happen to them? Does this give them any confidence the license they hold has any value? Does this give them any confidence that the agency that goes around talking about secondary markets that they are very serious about it?” asked Furchtgott-Roth.
Second, any spectrum identified for relocation would have to be comparable in terms of technical and operation characteristics. DoD can rejec
t spectrum deemed unsuitable for meeting military requirements. The Pentagon might have political cover for resisting relocation in an administration headed by GOP Texas Gov. George W. Bush and Dick Cheney, former secretary of defense under the administration of Bush’s father.
Third, 3G mobile-phone carriers would have to directly reimburse relocated users. Having spent billions for spectrum and system buildout (including 2 GHz relocation costs) carriers may not be in the mood or financial position to agree to pay a heavy price to relocate 1700 MHz and 2500 MHz licensees.
NTIA said it is currently crafting relocation reimbursement rules.
