WASHINGTON-The Federal Communications Commission issued rules that will allow MediaFLO USA Inc. to begin operations next year as planned, but has yet to begin the inter-agency coordination necessary for mobile TV competitor Modeo L.L.C. to go forward.
In order for either mobile TV service to begin commercial operations, the FCC needed to address certain rule changes so the new services don’t interfere with existing services on or near their respective bands.
For Qualcomm Inc. subsidiary MediaFLO, rules had to be changed to allow MediaFLO to operate without causing too much interference to TV broadcasters using channels 54, 55 or 56. The FCC rules govern the interim time between now and 2009, when TV broadcasters must relinquish those channels.
In its vote last week, the FCC agreed to allow Qualcomm to offer mobile TV services in markets where TV broadcasters are operating, as long as Qualcomm follows established engineering guidelines to minimize interference. Qualcomm cannot cause more than 0.5 percent of interference the first year; over the next several years that threshold will gradually increase to 1.5 percent. Qualcomm had initially asked for a 2-percent threshold.
Qualcomm filed its petition on the issue in January 2005.
Republicans and Democrats on the FCC said the rules were a compromise that protects incumbent TV broadcasters while allowing mobile TV to go forward.
“I want to take all appropriate steps to enable the petitioner in the above-captioned item to provide its innovate subscription-based mobile video service in advance of the DTV transition. At the same time, we must ensure that this new service does not materially interfere with the ability of broadcasters to provide free, over-the-air programming to their customers (including Spanish-language programming in at least one large market). Though I would have preferred stronger protections for broadcasters currently operating in the 700 MHz band, I believe today’s decision represents a reasonable compromise that reflects the unique importance of free, over-the-air broadcasting in American life,” said Democratic FCC Commissioner Michael Copps.
However, the FCC has yet to resolve issues surrounding mobile TV company Modeo. MediaFLO and Modeo have chosen different spectrum and different technologies, but plan to offer similar services-mobile TV delivered to portable devices.
Consumers will not benefit from this technological competition without an answer for Modeo, said one Modeo fan.
Modeo, a subsidiary of tower giant Crown Castle International Corp., plans to use five megahertz of spectrum in the 1600 MHz band it bought at a 2003 FCC auction to offer mobile TV using DVB-H technology. Because some government agencies also use the 1600 MHz band, the FCC has to coordinate Modeo operations with the National Telecommunications & Information Administration.
Modeo told FCC Chairman Kevin Martin last month that NTIA is ready to get behind the spectrum coordination process once the FCC asks.
Martin said the agency is working on it. “We will try to address the waiver requests as fast as we can. Some of the waiver requests also involve not only commercial uses, but requests for waivers of interference on government uses and when that occurs, we have to coordinate with other government agencies. That process sometimes takes a while,” Martin told reporters after the MediaFLO action.
Typically when NTIA has already worked with the private parties, as in this case, coordination can be achieved quickly.
“Crown Castle appreciates the commitment made by Chairman Martin and his colleagues to quickly resolve Crown Castle’s pending power-limit request,” said Ari Fitzgerald, Crown Castle’s outside counsel.
Modeo filed its waiver application in August 2005, and by the end of that year, NTIA was ready to facilitate the process, according to Modeo. Perhaps a slide that Modeo presented during its meeting with Martin said it best. “The FCC has thus far failed to request NTIA coordination,” says the slide.
The heavy lifting to make sure Modeo’s service doesn’t interfere with existing entities on the band has already been done. Basically, NTIA will request additional protection around some weather satellites. Modeo has already agreed to those parameters.
Modeo is asking the FCC to change its power-limit measurements so that it is measured on a per-megahertz basis rather than a per-channel basis. Modeo filed a waiver request thinking it would be a faster process than a complete rules change, which it also is seeking. The commission has been lobbied on the request as late as last week when Texas Instruments Inc., Nokia Inc., Sony Ericsson Mobile Communications L.P. and Microsoft Corp. met with Aaron Goldberger, wireless legal adviser to FCC Commissioner Deborah Taylor Tate.
“The FCC needs to update its power measurement rules to ensure that innovative wideband technologies not be unduly constrained by rules developed for narrowband technologies. Such an update would promote technology neutrality and foster innovation,” said Robert Koppel, Texas Instruments’ director of government relations.
Modeo plans to build out 30 markets by the end of next year, but these plans are threatened without the rule change and/or waiver. Already, Modeo has completed a trial run of its offering in Pittsburgh, Crown Castle’s home base. Further, the company has promised to have a commercial mobile TV network up and running in New York City by the end of this year. The New York City system is being built under the old rules, which means more towers and higher costs. It is highly unlikely a nationwide system could be built out under those conditions.
According to Crown Castle’s Securities and Exchange Commission filings, Modeo spent about $13.4 million on the New York buildout in the most recent quarter. Also in the quarter, Crown Castle reported a loss of $2.7 million due to Modeo’s operating costs.
Verizon Wireless has announced it will offer MediaFlo’s service early next year and the FCC’s rules will not change those plans, MediaFlo President Gina Lombardi told RCR Wireless News.
Lombardi said MediaFlo envisions a rollout similar to Verizon Wireless’ EV-DO deployment. In that case, Verizon Wireless initially launched in 23 markets gradually expanding nationwide.
The third mobile TV competitor has not asked for any waivers or rule changes. Hiwire is Aloha Partners’ mobile-TV effort. Hiwire owns 12 megahertz of spectrum in the 700 MHz band that it cobbled together through both auctions and acquisitions. Hiwire also plans to use DVB-H technology.
