An FCC transition plan provides sufficient time for carriers to deploy and broadcasters to exit the 600 MHz band after the incentive auction, T-Mobile officials said in a meeting with Matthew Berry, chief of staff to FCC Commissioner Ajit Pai. “T-Mobile noted its swift deployment of 700 MHz spectrum and noted that the performance of this low band spectrum has exceeded the company’s expectations for improving coverage for consumers in urban building and rural environments,” said a filing in docket 12-268. “T-Mobile affirmed its intention to deploy any 600 MHz spectrum it may obtain in the current auction with equal urgency to meet consumer demand.” T-Mobile filed similar comments at the FCC in November on the transition plan (see 1611160033). The carrier is expected to go big in the auction to fill in gaps and add to its low-band spectrum portfolio (see 1601060059).
The current average price per MHz pop in the incentive auction below the threshold needed to trigger the final stage rule won't lead to a failed auction, attorneys following the process said in interviews Monday. It may mean the auction is less likely to close in the current Stage 4 (see 1612050062) than is commonly thought, they said. To trigger the final stage rule, the average auction price this stage must reach $1.25 per MHz POP for the most valuable spectrum. When the reverse auction starts Tuesday (see 1612090028), the price will be a fraction under $1.22 per MHz pop, said the public notice announcing Stage 4.
Incoming House Commerce Committee Chairman Greg Walden, R-Ore., faces much deliberation before picking his replacement as chair of the Communications Subcommittee, he told us Friday. But he predicts broad continuity on GOP telecom priorities in the next Congress and anticipates the many legislative initiatives from his own time as subcommittee chairman could be a springboard for Commerce going forward. Telecom and media industry officials issued many statements lauding Walden's ascendance.
Wireless carriers and broadcasters called on the FCC to introduce more flexibility into the post-auction repacking plan, in reply comments posted Wednesday in docket 16-306. Lawyers meanwhile told us the FCC is unlikely to grant a request filed in that docket Monday by GatesAir calling for the agency to incentivize broadcasters in the repacking to “Buy American” (see 1611150051). The FCC's repacking plan doesn't account for unexpected delays or broadcasters unable to meet the 39-month deadline, broadcasters and carriers said.
In the interim before it reaches its goal of a constellation of 900 cubesats put in orbit over 15 years (see 1511240022), Spire Global is asking the FCC International Bureau for approval to deploy up to 100 satellites in its Lemur-2 constellation next year. In an application amendment filed Monday, the maritime and meteorological monitoring and earth imaging services company said that interim step comes as the company has run into "complications in the completion of coordination for the frequencies" originally proposed for its Lemur-2 constellation. Monday's filing comes after the bureau in October approved Lemur-2's Phase I of up to 28 non-geostationary satellites, though it deferred action on Phase II and said that based on feedback from NTIA, future nonfederal satellite licenses using the 402-403 MHz band for downlinks would "only be exceptionally considered." It also didn't approve Spire using 402-403 MHz downlinks to four of its earth stations. In its application amendment, Spire said it was looking to add various downlinks and uplinks "to increase the flexibility it has to coordinate spectrum use with existing users." In Phase 1B, Spire said it wanted authorization to add 2200-2290 MHz and 401-402 MHz downlinks and 399.9-400.05 MHz uplinks to the frequencies allowed, as well as multiple receive-only frequencies. In Phase 1C, Spire said it also wanted authorization for addition of the 449.75-450.25 MHz uplink frequency. The company said it plans to launch its 100-satellite Lemur-2 constellation over the course of 16 separate launches in 2017, with each satellite having an operational lifetime of up to two years and an orbital lifetime of, at most, 12.8 years at the highest orbit sought, 600 kilometers.
Wireless carriers and broadcasters disagree about the viability of the FCC's repacking schedule and how it should be changed, according to comments filed in docket 12-268 in time for Monday's comment deadline, which saw some earlier comments from all sides (see 1610310052). Some broadcasters believe FCC prioritization of clearing the 600 MHz band of stations gives too much emphasis to the needs of wireless carriers and not enough to the health and safety of tower crews, while the Competitive Carriers Association argued that not enough emphasis is being given to clearing the spectrum quickly. “Allowing stations to move forward when ready, potentially out of order with the schedule produced by the Phase Scheduling Tool, will remove unnecessary impediments and ensure timely reassignment of stations that may be prepared to move sooner than anticipated,” commented CCA.
NAB and CTIA complimented FCC Incentive Auction Task Force efforts to develop a reasonable plan for the transition after the end of the auction (see 1609300071). They disagreed whether the agency has the right approach. Broadcasters want more flexibility to ensure consumers don’t lose coverage. CTIA is pushing for an accelerated transition so carriers get access to the 600 MHz spectrum quicker. The comments pick up a long-standing disagreement between broadcasters and the wireless industry (see 1510080026).
This week's swift resolution to the forward auction phase of Stage 2 of the incentive auction (see 1610190059) is seen as a sign that wireless bidders are keeping their powder dry for later stages, when the supply is more in line with their demand, industry lawyers following the incentive auction told us Thursday. Other auction watchers and analysts believe the swift end indicates a lack of wireless demand, and may indicate one of the larger wireless bidders decided not to buy the 600 MHz spectrum, they said. Some believe the quick end of the forward auction makes a fourth stage, with a clearing target of 84 MHz, increasingly likely. The single-day forward auction “further increased the odds that Stage 3 of the auction, which we expect to commence toward the end of October or early November, will be followed by a fourth stage as well,” PwC analyst Dan Hays said in an email to investors.
CTIA supported an FCC proposal to streamline Part 20 rules, made as part of a July NPRM: “CTIA agrees that Section 20.9’s structure and purpose no longer match the highly competitive and innovative wireless marketplace and encourages the Commission to move forward with harmonizing and streamlining its regulations in this regard.” The rules would harmonize rules for services like PCS with rules for the 600 MHz, 700 MHz and AWS bands, CTIA said. The FCC should be aware of unintended consequences, CTIA said. “In implementing harmonization, the Commission must ensure that it does not inadvertently disrupt licensees’ expectations regarding their existing licenses," the group said. "As the Commission explains, the proposal to eliminate Section 20.9 ‘is narrow’ and is intended ‘to eliminate an unnecessary burden upon certain licensees and applicants in services named in that section. There would be no change in the obligations imposed upon entities providing commercial or private mobile radio service.’” The comments were filed in docket 16-240.
The FCC established a new price target for Stage 2 of the forward part of the TV incentive auction: $54.6 billion, based on the cost of buying enough broadcaster licenses to sell nine 10 MHz licenses in most U.S. markets. That total is well below the Stage 1 target of $88.4 billion, but probably more than carriers and other bidders are likely to spend for the low-band spectrum, said analyst and industry officials Thursday. Stage 2 of the reverse auction closed Thursday, as expected, after 53 bidding rounds (see 1610120074). The FCC must clear 114 MHz to get to 90 MHz.