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FCC carves out 200 MHz for broadband deployment

WASHINGTON-The Federal Communications Commission last week opened up a huge swath of spectrum for wireless broadband services, creating incentives for businesses to invest in a third digital pipe to homes and businesses across the country.

In doing so, the agency found a new home-the 2.5 GHz band-for 2.1 GHz users forced off the band to free up spectrum for third-generation wireless systems.

By revamping the 2.5 GHz band, it is now technically feasible and financially attractive to deploy wireless broadband systems in that frequency range.

Schools and colleges, which offer educational video services and lease excess channels to commercial firms in the band, were protected. The FCC declined to relax or eliminate eligibility rules for the Instructional Television Fixed Service or allow educational institutions to sell their licenses-a sensitive political issue federal regulators sidestepped.

In all, nearly 200 megahertz-more frequencies than that allocated to cellular, PCS and SMR services-was involved in the 2.5 GHz band overhaul.

The wireless broadband industry, which now prominently includes Craig McCaw’s Clearwire Corp. and Nextel Communications Inc., applauded the ruling.

“The Wireless Communications Association is gratified that the proceeding is moving toward a conclusion that will unlock the consumer and educational benefits of this spectrum by a major reform of the rules,” said WCA President Andrew Kreig.

The FCC’s ruling was based in part on a 2002 proposal submitted by WCA, the National ITFS Association and the Catholic Television Network.

“Today’s commission action is an important step in promoting the deployment of broadband wireless services,” said Gerry Salemme, executive vice president of Clearwire Corp. “We look forward to reviewing the technical rules and transitional plans that are critical elements in facilitating the availability of these services to consumers in urban and rural markets.”

Sprint Corp., which holds licenses in the band, is also a big winner.

The FCC set a three-year transition period for 2.5 GHz licensees to adapt to new rule changes, and established guidelines for negotiations among stakeholders. At the same time, the commission launched a new inquiry to study whether other mechanisms-including auctions-can be employed to maximize use of 2.5 GHz channels.

To make the 2.5 GHz band plan work, federal regulators had to change the location in the mobile satellite service band, where ancillary terrestrial component operations are allowed.

The agency also approved sharing between the two operational MSS operators-Iridium Satellite L.L.C. and Globalstar L.L.C.-in the 1.6 GHz band.

Officials plan to examine whether future MSS sharing is feasible. Previously, only CMDA operators-at present, only Globalstar-had access to the 1618.25-1621.35 MHz band. Now, Iridium, which uses TDMA technology, can operate in the band.

While the new 2.5 GHz band plan passed by a 5-0 vote, Commissioner Jonathan Adelstein criticized the FCC’s embrace of large service areas for wireless broadband licenses.

“I believe that broadband deployment for the foreseeable future will be rolled out on a relatively localized basis,” said Adelstein. “I am concerned that the obligation to transition an entire MEA [major economic area] will make it exceedingly difficult for proponents to effectuate transitions in their particular market.”

Whether the FCC ruling helps to fix a dispute between a New York wireless broadband firm and the Diocese of Brooklyn in the nation’s largest market is unclear.

NY3G claims the diocese is blocking the rollout of wireless broadband service in the city and parts of nearby Connecticut and New Jersey.

Both the diocese and the NY3G partnership told RCR Wireless News they believe the issue can be resolved.

The text of the FCC ruling will be released at a later date.

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