The Federal Communications Commission issued its final rules on secondary markets earlier this week, hailing the action as one of the most important spectrum reform decisions during the past decade.
The spectrum leasing-or secondary markets-rules, which were voted on in May, allow wireless carriers to lease spectrum they are not using to other companies. The hope is the new rules will allow 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,” read the FCC’s statement on the decision.
The previous 40-year-old Intermountain Microwave standard required FCC prior approval for any license transfer. Now, prior approval is not necessary for leases in which there is no change in de facto control and the process for other leases has been streamlined. The approval process for transfers and assignments of licenses has also been streamlined.
“Together, the rules we adopt will create new opportunities for licensees with under-utilized spectrum, to the benefit of consumers,” the commission said. The new rules may be particularly beneficial to rural America as nationwide licensees can now easily lease spectrum to an entrepreneur interested in building out a network there.
FCC Commissioner Michael Copps voted against the rules and dissented from the final ruling because he does not believe the Communications Act allows them.
