FCC Approves Agreement Allowing Wireless Broadband Build in WCS Band
The FCC approved on a 5-0 vote a settlement between AT&T and Sirius XM that opens the door for the carrier to deploy LTE in 30 megahertz of spectrum in the 2.3 GHz wireless communications service band. Wednesday’s order ratifies an agreement worked out by the two companies and unveiled in June (CD June 19 p1), on the sharing of the band between WCS and the satellite digital audio radio service.
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The FCC’s National Broadband Plan targeted the 2.3 GHz spectrum for wireless broadband, one part of the administration’s goal of freeing up 500 MHz of spectrum over 10 years for wireless broadband (CD May 21/10 p5). The FCC previously approved an order reallocating the band (CD May 21/10 p5), but pending petitions for reconsideration by the WCS Coalition, which represents WCS licensees, and Sirius kept the spectrum out of play. The new order adopts buildout requirements for the WCS spectrum imposed in the 2010 order, but provides an additional six months to meet the deadlines. The FCC hadn’t published the order by our deadline.
"Over the past four years, the U.S. has regained global leadership in mobile, setting the pace in key areas like the apps economy, mobile operating systems and the roll out of 4G LTE networks,” said Chairman Julius Genachowski. “The U.S. has become the world’s testbed for 4G LTE services and applications."
Genachowski’s office has recently been sensitive to criticisms from the Republican commissioners on the administration’s overall lack of progress on bringing more spectrum to market and was concerned that statements regarding the agenda item might have highlighted shortcomings, FCC officials said. But Republican commissioners Robert McDowell and Ajit Pai for the most part focused their remarks on the virtues of the order at hand.
McDowell noted that the agreement emerged from industry negotiations rather than regulatory fiat. “Our action today is built upon the foundation of a private sector solution and, as a result, should bring an end to fifteen years of discord that prevented putting the power of this spectrum into the hands of American consumers,” he said.
"This proceeding has been especially challenging for this commission, because the technical rules requested by WCS licensees, were vigorously opposed by some members of the aviation industry, and satellite radio operators,” said Commissioner Mignon Clyburn. “In May of 2010, we thought we solved these problems. But, as the parties pointed out, there was more work to be done. Fortunately, WCS licensees and satellite radio providers found a way to move from focusing on litigation, to working toward consensus."
AT&T should begin deployment in the band within three years, Vice President Joan Marsh wrote on the company’s blog (http://xrl.us/bnup4m). “The era of regulatory dispute and uncertainty in the WCS band is finally drawing to a close,” she said. “While we have not yet seen the final Order, we anticipate that the service rules adopted today will permit deployment of LTE technologies in the WCS band while ensuring that satellite radio services are protected from unreasonable interference. AT&T took real risks to develop this under-utilized band and is committed to devoting the resources necessary to unlock its full potential."
AT&T agreed to effectively abandon use of the WCS band in about half the U.S. while gaining 10-20 MHz in the rest, Medley Global Advisors analyst Jeff Silva wrote investors. “The lesson here is fairly straightforward,” he wrote. “In this or a subsequent Obama administration, leading wireless carriers Verizon and AT&T have the potential to execute spectrum transactions so long as another national mobile-phone operator is not eliminated and each agrees to make sacrifices in the way of license divestitures and other conditions.”
CTIA and Free Press both praised the order. “Consumers are better off when carriers like AT&T utilize their existing spectrum instead of pursuing growth strategies that reduce competition and choice,” said Free Press Policy Director Matt Wood. The Aerospace and Flight Test Radio Coordinating Council, which uses spectrum adjacent to WCS, is pleased a resolution has been reached, the group said in a statement. “While we must await release of the text of the decision for review of the all-important details, it appears that the Agency has reached a result consistent with AFTRCC’s objectives -- preservation of interference-free spectrum vital for the safety of test pilots and persons on the ground, and critical for national security and aerospace industry productivity.”