RCA Presses Case for 700 MHz Interoperability Mandate

Commissioner Mignon Clyburn has been outspoken about the problems faced by small carriers and is expected to support some kind of mandate, if a voluntary industry solution does not appear possible before the end of this calendar year. In comments during a confirmation hearing last year, then-commissioner nominee Jessica Rosenworcel indicated she likely supports an interoperability requirement (CD Dec 28 p1). “Interoperability is so essential to communications,” she said previously. “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.”

New Commissioner Ajit Pai hasn’t indicated clearly how he'd vote. Chairman Julius Genachowski called for an industry solution last March when a notice of proposed rulemaking was approved by the commission, but also said the FCC will continue to monitor developments, leaving the door open for further action. Commissioner Robert McDowell has raised concerns about whether the FCC needs to impose a mandate. “We appreciate all the thoughtful comments and are reviewing them closely,” McDowell told us Monday. “At the same time, I will reiterate my call to industry to come up with a solution of their own before the commission acts. Historically, the private sector has always done a better job of setting technical standards” than federal regulators.

Pai has been briefed on the topic and asked some thoughtful questions, but declined to speculate further on how votes might stack up, said a small carrier official. Analyst Jeff Silva of Medley Global Advisors said he wouldn’t be surprised to see a 3-2 vote, along party lines, if Genachowski proposes a mandate.

It may be too early to tell how a vote would shape up, said Public Knowledge Legal Director Harold Feld. “Certainly all the commissioners, including Rosenworcel and Pai, are well versed in the issue,” he said. “But it would be surprising to see the 8th floor lining up on votes this early. All of the commissioners are going to want to hear from staff about possible solutions and their cost to handset manufacturers and carriers. And, of course, everyone always holds out hope for a voluntary solution of some kind. If staff appear prepared to make a strong recommendation for a mandate, AT&T may try to head it off with some kind of last-minute compromise. So I doubt that the commissioners are ready to make firm commitments one way or another at this point beyond what they said in their statements when they approved the [notice of proposed rulemaking] last spring.”

More predictable was how the major players lined up in their comments on the NPRM. The lack of a requirement that all devices designed for the lower 700 MHz band work across the band “hindered facilities deployment, competition, and innovation,” RCA said (http://xrl.us/bnabof). “The lack of interoperability has sidelined nearly $2 billion in spectrum investment by RCA members. The Commission should take immediate steps to establish interoperability in the Lower 700 MHz band to restore pro-competitive conditions and further the public interest.” The band is the “only significant spectrum band used for wireless voice and data services that is not fully interoperable,” RCA said. “The Cellular, PCS, and AWS bands are fully interoperable, and that interoperability has been a cornerstone in delivering significant benefits and value to consumers.” The FCC has the legal authority to impose an interoperability mandate, RCA said. “Congress gave the Commission authority in Title III to regulate the medium of radio communications, which includes clear authority to impose conditions on licensees to ensure interoperability.” Title III provisions “give the Commission specific authority to modify licenses and implement license restrictions that it finds are in the public interest,” the group said.

T-Mobile, which became an RCA member last year, also called for a mandate. “Interoperability is critical to the future of mobile services,” the carrier said (http://xrl.us/bnabn3). “In the 700 MHz band, it will reduce the cost of commercial equipment, thereby enhancing competition and facilitating consumer choice, and expedite the deployment of advanced broadband services in rural and unserved areas. Interoperability will also facilitate roaming among wireless carriers both outside and inside the 700 MHz band and enhance public safety services.” Smaller carriers need interoperability to be able to compete with AT&T and Verizon Wireless, T-Mobile said. “The lack of interoperability in the Lower 700 MHz band is part of the vicious cycle in which the two super-carriers leverage the existing competitive imbalance to further tilt the playing field against smaller providers."

Qualcomm warned that the lower 700 MHz band issues will be tough to resolve (http://xrl.us/bnacfv). “The Lower 700 MHz band is a tremendously challenging interference environment because it places high-power operations in close proximity to lower-power operations and high-power downlink signals immediately adjacent to low-power uplink signals,” the equipment maker said. “Specifically, lower powered Commercial Mobile Radio Service (CMRS) device operations in the A Block (transmitting at Channel 52 and receiving at Channel 57), B Block (transmitting at Channel 53 and receiving at Channel 58), and C Block (transmitting at Channel 54 and receiving at Channel 59) must occur in the face of high-power signals transmitted from the E Block (Channel 56) and TV Channel 51.” A band that takes in the B & C blocks, where interference risks are stronger, “requires a narrower filter” than is required by A-block licensees, Qualcomm said.

CTIA urged the FCC to address various interference issues, without weighing in for or against a mandate -- an issue that divides its members (http://xrl.us/bnachp). “The lengthy record in this docket demonstrates the significant interference issues that must be addressed by the Commission if broadband deployment is to be successful throughout the Lower 700 MHz band,” the association said. “By limiting instances of interference from Channel 51 and the E Block into nearby Lower 700 MHz blocks, the Commission can create an environment that can accommodate interoperable handsets.” CTIA noted that in combination with RCA it filed a petition last year calling for action on Channel 51 issues, which “highlighted the challenges faced by Lower 700 MHz A Block licensees as a result of their proximity to Channel 51, which have been well developed in this and related proceedings."