WASHINGTON-The Federal Communications Commission on Thursday adopted rules allowing for leasing of commercial spectrum and proposed rules allowing for leasing in certain circumstances for public-safety spectrum.
“The spectrum leasing policies adopted are a landmark step in the [FCC’s] evolution toward greater reliance on the marketplace to expand the scope of available wireless services and devices. These policies will lead to more efficient and dynamic use of the important spectrum resources to the ultimate benefit of consumers throughout the country,” said the commission.
FCC Commissioner Michael Copps voted against the rules because he does not believe they are allowed by the Communications Act.
The rules are expected to let the market rather than regulation decide whether a spectrum deal gets done. “Our decision unlocks value trapped for too many years in a regulatory box. That box was most clearly epitomized by the anachronistic 40-year-old Intermountain Microwave standard, which required commission prior approval for a license transfer any time a licensee ceded any of a panoply of responsibilities associated with equipment, salaries, personnel and sundry other activities. We are pleased to announce the passing of Intermountain, as we explicitly abandon that standard for spectrum leases,” said FCC Chairman Michael Powell and FCC Commissioner Kevin Martin in a joint statement. “We adopt a new standard more narrowly tailored to the statutory requirements and more suited to today’s marketplace.”
The 1963 Intermountain Microwave rules were much maligned, and Powell celebrated their end by noting they were the same age. “I was born the year Intermountain Microwave was established, and it has grown gray with me,” said Powell.
The hope is that rural America will now see more mobile-phone (and other wireless) competition because licensees that may not have wanted to see swaths of spectrum under the disaggregation model will be willing to lease those swaths to entrepreneurs who may want to build out networks.
The FCC may have one taker in its concept. AT&T Wireless Services Inc., which in the past has sold some of its spectrum, may be willing to lease spectrum now, said Douglas Brandon, AT&T Wireless vice president of federal affairs.
“We are very interested in rural areas,” said Brandon, noting his company is looking to lease to users who will build out a GSM network that will allow that technology to reach new customers and AT&T Wireless’ customers for roaming.
Spectrum could also be used for innovative services not normally associated with the carrier from which the spectrum is leased.
