WASHINGTON-While sparks fly on Capitol Hill over wrestling free 700 MHz spectrum from TV broadcasters, a lower profile feud with high stakes for mobile-phone carriers is escalating at the Federal Communications Commission. The debate is over whether the remaining two 2 GHz mobile satellite service licensees should receive additional spectrum available after several MSS operators in the band surrendered or lost their permits.
The FCC fight over 2 GHz MSS spectrum is the latest in a long-running spat between cell-phone and MSS companies over spectrum the ever-expanding wireless industry believes it needs far more than its financially struggling counterparts. Wireless carriers also have objected to an FCC rule allowing MSS operators to supplement satellite facilities with land-based cellular networks. However, for reasons still unclear, wireless carriers abandoned their legal challenge to the ancillary terrestrial component rule.
The 2 GHz spectrum at issue is adjacent to 1.9 GHz mobile-phone frequencies and likely worth billions of dollars on the open market. Only two 2 GHz MSS operators-ICO Satellite Services and TMI Communications and Co Ltd.-remain. However, Globalstar, Iridium and other MSS operators continue to do business in other frequency bands.
In April, TMI asked the FCC to redistribute spectrum made available as a result of the return of 2 GHz MSS licensees earlier this year by Iridium L.L.C., the Boeing Co. and Celsat America Inc. The TMI letter prompted a series of letters in response, including strongly worded objections by cell-phone association CTIA. Late last month, the FCC solicited public comment on its plan to give ICO and TMI some of the newly freed-up 2 GHz MSS spectrum.
Last week, CTIA again urged federal telecom regulators not to agree to requests from TMI and ICO to increase each’s spectrum holdings from eight megahertz to 20 megahertz, or 250 percent, in the 2 GHz band before either has a single customer. The FCC has proposed to give TMI and ICO 10.67 megahertz apiece, while seeking comment on whether to increase the spectrum allotment to 24 megahertz.
“ICO and TMI have a high burden to show that the intended spectrum giveaway is in the public interest, particularly given the absence of market forces (such as an auction) to ensure efficient spectrum use,” said CTIA. “They fail to meet this burden. Instead, it appears that grant of additional spectrum will enable TMI and ICO to further their planned ATC systems. In such case, the commission should follow its 2 GHz MSS precedent and reallocate the spectrum for terrestrial use, thereby allowing ICO and TMI to pursue the spectrum at auction.”
T-Mobile USA Inc. said neither of the two MSS licensees has justified the need for an additional 2 GHz spectrum, noting the FCC previously said five megahertz of paired spectrum is adequate for service initiation.
The 2 GHz MSS spectrum issue has gone full circle. The FCC five years ago awarded licenses to eight 2 GHz MSS operators, dividing 70 megahertz among them. Then in 2003, reacting to the mobile-phone industry’s request for regulators to reclaim all 70 megahertz from the faltering MSS sector, the FCC took 30 megahertz away from it. But in doing so, the FCC kept the mobile-phone-MSS controversy alive by giving MSS operators ATC authority.
MSS-ATC poses a potential competitive threat to cellular operators, but there are indications it could be an opportunity for mobile-phone carriers as well.
It is not only mobile-phone operators that oppose giving more 2 GHz channels to TMI and ICO. So does another MSS operator, Inmarsat Ventures Ltd. But Inmarsat has a different agenda, keeping newly available 2 GHz MSS spectrum away from TMI and ICO and finding a way to get its hands on it.
“The public interest would be best served by ensuring that other entities, including Inmarsat, have the chance to access a segment of the 2 GHz spectrum equal to TMI’s and ICO’s spectrum assignment,” Inmarsat told the FCC.
Globalstar, which petitioned the FCC to reconsider the 2003 cancellation of its 2 GHz MSS license, said that without enough spectrum “plans to expand and enhance its valuable MSS service may be frustrated.”
Last year, before becoming FCC chairman, then-Commissioner Kevin Martin said the FCC may have been too harsh on Globalstar in affirming a bureau-level decision revoking its 2 GHz MSS license.
ICO said access to sufficient 2 GHz MSS frequencies is critical to homeland security and emergency response providers.
