WASHINGTON-Warring wireless broadband and educational groups last week struck a deal on 2.5 GHz spectrum-lease terms, settling one of the many unresolved regulatory issues associated with the deployment of wireless Internet and third-generation wireless services in the United States.
The Federal Communication Commission this week will attempt to settle other disputes and issue final rules on 2.5 GHz wireless broadband service and 3G, or advanced wireless services, in the 1.7 GHz and 2.1 GHz bands. The FCC is scheduled to vote Wednesday on both matters.
A lot is riding on the FCC vote in light of criticism leveled at the Bush administration for the United States lagging behind other countries in broadband penetration and the U.S.’ struggle to put American 3G mobile-phone service on par with Asia and the rest of the world.
While FCC decisions this week may help clear much of the regulatory underbrush entangling wireless broadband and AWS in the nation, federal regulators in coming months will face other hurdles standing in the way of the scheduled June 29 AWS auction and the large-scale rollout of new wireless Internet services in the 2.5 GHz band.
On the wireless broadband front, the private sector made the job a bit easier for the FCC by reaching a compromise on a spectrum-lease term controversy that reached fever pitch in recent weeks.
The education community pushed for a 15-year limit on educational broadband spectrum leases in the 2.5 GHz band. Wireless broadband licensees, Sprint Nextel Corp. and BellSouth Corp. being two of the largest, argued a 15-year cap was too short and would undermine investment in a band considered the prime proving ground for WiMAX and other wireless broadband technologies. Major investment firms also weighed in at the FCC, backing wireless Internet carriers.
Last Wednesday, the day the FCC released its April 12 meeting agenda, the Wireless Communications Association International and the Catholic Television Network notified the FCC of their agreement on education spectrum-lease terms. The leasing of educational broadband frequencies provides a steady stream of revenue for schools, while creating greater access to spectrum for wireless Internet service providers.
Under the accord, which telecom regulators could accept, reject or change, the maximum permissible term of an educational broadband service spectrum-leasing arrangement entered into on or after the adoption of the FCC reconsideration order would be 30 years. For spectrum-lease contracts longer than 15 years, educational broadband licensees would have the opportunity to review their needs on the 15th year and every five years thereafter and be able to obtain additional services, capacity, support and equipment to further their charter.
The FCC would rely on good-faith negotiations between the parties on educational future spectrum requirements as agreed upon in contracts. As such, the FCC would not intervene to review educators’ assessments of frequency needs or the terms and conditions of acquiring additional capacity and support.
“Just as the EBS licensees have diverse educational requirements and advance their educational mission in varied ways, EBS lessees have different business models and capabilities for accommodating EBS’ educational use needs,” Clearwire Corp., Craig McCaw’s wireless broadband firm, told the FCC. “The commission must recognize these differences and avoid taking any action in this proceeding that favors once business model over another, upsetting the carefully crafted balance that currently exists through spectrum leasing arrangements between promoting the use of EBS spectrum to advance the educational mission and concurrently facilitating the efficient and dynamic use of this spectrum for the benefit of all Americans by innovative commercial advanced wireless broadband service providers.”
The FCC revamped the 2.5 GHz band in 2004 to accommodate development of wireless broadband service, while preserving educational applications in the band. One agency vote this week will address various petitions for reconsideration of that decision.
The road to wireless broadband and 3G in the U.S. has been rocky because of the complex revisions to frequency assignments and relocation plans, which have triggered a domino effect touching commercial wireless broadband, educational broadband, AWS and mobile satellite services as well as microwave oven operations.
Designing a plan to relocate licensees from the 2.1 GHz band-one of the two bands designated for AWS-is particularly important. It will be a challenge for the FCC to construct a plan that pleases all parties and avoids litigation.
The agency this week also should address filing requirements, minimum opening bids, upfront payments and other procedures for the AWS auction-also dubbed Auction 66.
Two major issues still facing the FCC in advance of the June 29 start-date of the AWS auction are the agency’s controversial “blind bidding” plan and its proposal to ban large cellular carriers and perhaps other major telecom players from partnering with small applicants eligible for 25 percent bidding discounts and other “designated entity” benefits.
