Votes Could Be Lining Up for Early Approval of 700 MHz Interoperability Mandate
Small carriers who have long asked the FCC to mandate that handsets developed for use in the 700 MHz band work across lower 700 MHz, could be headed for victory next year. The FCC agreed to launch a notice of proposed rulemaking last week as part of an order approving AT&T’s buy of 700 MHz licenses from Qualcomm (CD Dec 27 p1). The NPRM, slated for the first quarter, would tee up the issue for what could be a key early decision of the newly reconstituted FCC, following the expected confirmation of Jessica Rosenworcel and Ajit Pai as commissioners as early as February.
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Current Commissioner Mignon Clyburn has already made clear she largely supports an interoperability requirement, laying out her concerns about the issue last week in her statement on the Qualcomm order (http://xrl.us/bmmriw).
Rosenworcel has also indicated she views 700 MHz interoperability as a key competitive concern. During a Nov. 30 confirmation hearing, Rosenworcel was asked point blank about the issue by Sen. Roger Wicker, R-Miss. “It’s a big complex question,” she responded: “Interoperability is so essential to communications. Small rural carriers that have spectrum in the 700 MHz band may find that their customers are unable to actually use their devices when they need to leave home and roam on other networks. That’s a real problem, so I think something needs to be done to address this while also recognizing that there are real technological challenges and costs.” Commissioner Michael Copps, Rosenworcel’s former boss, stressed his concern that the Qualcomm order didn’t mandate 700 MHz interoperability as a condition of approval in casting a “no” vote last week (http://xrl.us/bmmriq).
Small wireless carriers have made the issue a top priority in their advocacy before the FCC. Small carriers are worried that, without an interoperability mandate, manufacturers won’t make affordable handsets for band 12, covering the spectrum they bought in the 2008 700 MHz auction. The spectrum AT&T and Verizon Wireless bought is primarily in bands 13 and 17 (CD Oct 8/10 p1). In April, the FCC held a workshop on the issue at which former Wireless Bureau Chief Ruth Milkman warned it presents many complicated questions that may not be easy to resolve (CD April 27 p1).
"I am very hopeful that the NPRM will be expedited at the commission and with the chairman’s commitment to Commissioner Clyburn to address interoperability quickly -- I hope we will see improvement in the smaller carrier’s ability to build out 4G services next year,” said Rural Cellular Association President Steve Berry Tuesday. Berry said that since band 17 is a subset of band 12, as auctioned by the FCC, the two bands should be targeted first for interoperability. Band 17 is the primary 700 MHz band in which AT&T owns spectrum. “The FCC workshop revealed it is technically feasible to combine the bands and our members will provide additional information to that effect,” Berry said. “Since AT&T will not be acquiring T-Mobile, I think it makes sense for AT&T to look to the carriers that own adjacent spectrum, to partner with and build out a network that could be complementary and compatible with the AT&T 700 MHz network build out."
Ben Moncrief, spokesman for C Spire Wireless, which has been active on the issue, said Tuesday he remains hopeful the FCC will act quickly. “The record is substantial and now filled with engineering data supporting the feasibility of interoperability in the Lower 700,” Moncrief said. “What matters most is how quickly interoperability, especially in the Lower 700 MHz, will be implemented by the commission. We must get there before the second half of 2012. Until then, the competitive carriers and new entrants seeking to operate on their lower A-block licenses will continue to have no viable path to offering nationwide LTE services."
Vulcan Wireless is also optimistic an interoperability order will be approved in short order, a spokeswoman said. “The need to ensure marketplace competitiveness is understood and supported at the highest levels of the FCC,” the spokeswoman said. “In this rulemaking, the FCC simply needs to ensure that the policies that have built the U.S. wireless industry remain in place and that dominant market players cannot use their undue influence for their own proprietary purposes. Otherwise, dominant wireless carriers will be able to manipulate government spectrum auctions, thwart marketplace competitiveness, and unfairly influence standard body activities.”