WASHINGTON—The Federal Communications Commission is re-examining the service and licensing rules for the 700 MHz spectrum it plans to auction in 2008, and will consider changing how the spectrum is divvied up as well as when the spectrum licenses will expire.
The 700 MHz spectrum is being returned as part of the digital TV transition.
Under the DTV Act, the commission must begin auctioning licenses by Jan. 28, 2008. However, the licenses that it will auction are currently set to expire in 2015—giving auction winners only a handful of years to operate their services. Thus, the FCC is opening up the expiration date to comment from industry. Most spectrum licenses last for 10 to 15 years.
“In general the rules provide for a license term that expires in 2015, so we are seeking comment on whether that date should be modified in any way,” said Catherine Seidel, acting chief of the FCC’s Wireless Telecommunications Bureau.
Aside from the expiration date, the FCC is also collecting comments on how to auction the spectrum. The FCC is seeking “comment on the possibility of modifying the size of the geographic service areas and spectrum blocks, and on revising the performance requirements,” said the commission. The agency is “also seeking comment on several issues related to both auctioned and unauctioned spectrum, including modifying the rules related to license renewal, license terms and power limits.”
Specifically, the FCC is considering whether to change the licenses to align with cellular geographic marketing areas, or to configure the licenses into smaller geographic areas. The current rules call for the spectrum to be auctioned in six regional blocks based on economic area groups.
Some are asking for the spectrum to be auctioned in smaller license sizes.
“Smaller providers need a fighting chance to bid against the large national carriers for spectrum that is ideally suited for rural-broadband applications,” said FCC Commissioner Michael Copps.
The Rural Cellular Association, which had asked the FCC to reconsider its licensing scheme for the 700 MHz band, said it was optimistic the commission would eventually adopt a change allowing for smaller license sizes.
“We think it will improve and expedite service to rural areas,” said David Nace, RCA outside counsel.
CTIA, which represents nationwide mobile-phone carriers, did not immediately offer a position on how the spectrum should be auctioned.
In reworking the rules for the 700 MHz auction, the FCC will also consider whether it should reclaim spectrum not being used—especially if someone has indicated a desire to offer service with that spectrum.
FCC Commissioner Jonathan Adelstein seemed very keen on the concept.
“We ask important questions on whether the country would be better served by alternate performance requirements such as more specific construction benchmarks or a ‘keep what you use’ re-licensing mechanism,” said Adelstein. “I am particularly interested in reactions to the suggestion of a ‘triggered keep what you use’ rule, in which the FCC, rather than reclaiming unused spectrum after a period of time, would reclaim spectrum only in the event a party other than the licensee is interested in securing access to the spectrum in an unserved portion of the license area. My hope is that this discussion will lead to the commission moving to more of a ‘carrot and stick’ approach to performance requirements—an approach that I have long advocated—in the future by which the FCC promotes flexibility and innovation, yet expects more specific results as well.”
