WASHINGTON-The Federal Communications Commission last week officially proposed rules that could lead to the end of spectrum caps. Additionally, the FCC announced rules to relocate incumbents in the 2 GHz spectrum band that has been allocated to mobile satellite services.
Both decisions could have dramatic impacts on the future of the wireless industry as policy makers prepare for the third generation of wireless services-originally envisioned as a global mobile phone service but now seen as having Internet, video, and data services, as well as voice capabilities.
Today carriers are limited to 45 megahertz of spectrum in a given geographic area. The spectrum cap was put in place before the rollout of personal communications services to promote competition by limiting the amount of spectrum that could be controlled by cellular licensees. The results in urban areas have been positive with many new players entering the market offering competition and lowering prices for consumers. The results in rural areas, as pointed out by FCC Commissioner Gloria Tristani, have not been as positive.
The NPRM also will address cellular cross-ownership rules that prohibited cellular monopolies. This is a central issue to the pending mergers between both SBC Communications Inc./ Ameritech Corp. and Bell Atlantic Corp./GTE Corp. The FCC said the mergers will be evaluated against rules currently in place, not future rules. However, the agency would not be surprised if the carriers involved in the mergers sought a waiver from the spectrum caps or cellular cross-ownership rules based on the pending NPRM, said Daniel Phythyon, chief of the FCC’s Wireless Telecommunications Bureau.
The wireless industry is split on the need for the spectrum cap. The Cellular Telecommunications Industry Association is urging the FCC to forbear from enforcing the cap while the Personal Communications Industry Association has said the caps are necessary to foster new competition. Indeed, the FCC officially is seeking comment on CTIA’s forbearance proceeding as part of the NPRM.
CTIA asked the FCC to forbear, or not enforce, spectrum-cap rules to allow carriers to gain access to more spectrum in the emerging age of wireless data services. The FCC has until Sept. 30, 1999, to make a decision.
The industry was asked to provide data in support of one of several options. The options included maintaining or modifying the existing spectrum cap; approving the CTIA forbearance petition; establishing a sunset for the spectrum cap and/or eliminating the spectrum cap and relying on a case-by-case analysis to assess potential competitive effects of proposed spectrum holdings by a particular entity within a geographic area.
In other action last Thursday, the FCC allocated 70 megahertz of spectrum at 2 GHz (1990-2025 MHz and 2165-2200 MHz) for MSS. This allocation comports closely with the international MSS allocations.
The FCC also proposed rules for auctioning 40 megahertz in response to congressional directives contained in the Balanced Budget Act of 1997. The 40 megahertz are located at 2110-2150 MHz and are currently allocated to broadcast auxiliary services and fixed service microwave licensees.
