WASHINGTON-The wireless industry last week received the strongest indication to date that securing third-generation mobile-phone spectrum will be difficult if not impossible, as an eclectic mix of military, educational, religious and fixed wireless licensees voiced serious reservations about leaving their frequencies to make room for 3G.
Last week’s developments indicate the 1700 MHz and 2500 MHz bands-two of the three bands identified by the World Radiocommunication Conference last year for 3G-not only have strongly mobilized constituencies, but constituencies politically aligned with key Bush administration programs that include education accountability, defense reform and faith-based outreach.
At the same time, the Bush administration-facing a wailing Wall Street-wants to avoid taking actions that could chill the development of a 3G industry that could become a major economic driver in coming years.
The choices for the Bush administration are neither easy nor clear.
The Federal Communications Commission was flooded with written comments from educators, religious leaders and fixed wireless firms objecting to the use of the 2500 MHz band for 3G.
“The Diocese of Brooklyn serves approximately 70,000 students and 4 million people. We are moving to a high-speed, two-way system that will provide streaming video, video-on-demand, wide-area networks and high-speed Internet access to service our schools, parishes and hospitals,” said Monsignor Michael Dempsey, president of the Catholic Television Network and director of Pastoral Communications at the Catholic Diocese of Brooklyn.
The National ITFS Association, a group representing educational licensees that operate in the 2500 MHz band, challenged fundamental assumptions underlying the 3G spectrum plan that the Bush administration inherited from President Clinton. ITFS stands for instructional television fixed service, which is regulated by the FCC.
“In considering the issue, the FCC cannot take for granted that particular amounts of spectrum are required for 3G, as recent events have cast significant doubt on consumer acceptance and the commercial viability of 3G services,” stated the group.
The National ITFS Association urged the FCC to focus 3G spectrum efforts on the 1700 MHz band, which other global regions are considering for next-generation mobile-phone service. In the United States, the Department of Defense and other federal agencies hold the 1700 MHz band.
Canada and Mexico, meanwhile, appear to have embraced the 2500 MHz band for fixed broadband wireless Internet services.
The Wireless Communications Association, a U.S. trade group that represents fixed wireless carriers, was direct in voicing its opposition to 3G use of its members’ frequencies.
“WCA’s position is simple: The mobile industry does not need the 2.1 GHz and the 2.5 GHz bands to provide 3G services, as ample spectrum is available elsewhere,” said Andrew Kreig, president of WCA.
Initial government and industry studies cast doubt on sharing the 2500 MHz band between fixed wireless and 3G operators. That leaves another alternative: clearing the 2500 MHz band and relocating licensees to other, yet-to-be-identified frequencies. 3G carriers would finance the relocation of 2500 MHz and 1700 MHz users alike, though some in the mobile-phone industry have talked of seeking legislation that would earmark a portion of 3G spectrum auction revenue for moving licensees to other frequencies.
Strong opposition to such a relocation likely would come from long-distance giants WorldCom Inc. and Sprint Corp., which have invested $1 billion each on fixed wireless licenses.
Thomas Wheeler, president of the Cellular Telecommunications & Internet Association, recently said the 1700 MHz band is preferable for roaming purposes.
But if the mobile-phone industry has given up on the 2500 MHz band, as Wheeler’s recent statements suggest, there still is no guarante spectrum in 1700 MHz band or in the 698 MHz-960 MHz bands will be available for 3G. TV broadcasters control the latter band.
On Capitol Hill last week, Senate Armed Services Committee Chairman John Warner (R-Va.) and President Bush’s pick for deputy secretary of defense-Paul Wolfowitz-signaled the Pentagon is not going to surrender the 1700 MHz band to 3G operators without a fight. The signals were subtle, but substantial just the same.
In written answers to advance questions from the Senate Armed Services Committee, Wolfowitz explained what he would do if the Department of Defense concludes there will be a significant cost and operational impact if military services have to relinquish the 1700 MHz band.
He answered: “If confirmed, I will need to be thoroughly briefed on the study to fully appreciate its findings. The department will continue to work closely with the National Telecommunications and Information Administration and the Federal Communications Commission in determining the best decision for the nation, balancing national security and economic development, in identifying spectrum for the next generation of wireless systems while understanding that the department’s readiness must not be compromised. I know that [Defense] Secretary [Donald] Rumsfeld assigns a very high priority to this. I would also like to acknowledge the tremendous support the department has received from this committee in supporting the department’s assured access to the electromagnetic spectrum.”
In 1997, the Pentagon and mobile-phone industry fought furiously on Capitol Hill over Defense Department efforts to shore up a spectrum inventory depleted as a result of 1993 legislation that shifted 235 megahertz of federal government spectrum to the private sector for sale.
After last Tuesday’s hearing, Warner told RCR Wireless News the 3G spectrum controversy was not aired during the Armed Services Committee session because it involves dual jurisdiction of the commerce and defense departments.
New Commerce Department Secretary Donald Evans has expressed interest in promoting American 3G competitiveness in global markets.
Warner, noting he has talked to Rumsfeld about 3G spectrum, said he does not want to get too far in front of the issue until the Pentagon’s 1700 MHz study is completed. That study is due to be completed later this month. According to an industry source close to 3G industry-government talks, military top brass are not expected to paint a pretty picture for sharing the 1700 MHz band with 3G mobile-phone firms.
“We’ll be watching it closely. This senator will be watching it closely,” said Warner.
The wireless industry, for its part, made a strong, unified showing at the FCC.
A group of wireless trade associations filed a massive report with the FCC that concluded “all or most of the 1710-1850 MHz band can be made available for 3G services while meeting the needs of incumbents.” The industry coalition said there was no consensus on technical solutions for accommodating 3G services in the 2500 MHz-2690 MHz band and that the issue is best left to the FCC for consideration.
