Key parts of the National Broadband Plan still require action by Congress. A potential roadblock for the commission as it implements the plan remains that the commission cannot control if or how quickly Capitol Hill moves forward on its parts.
The FCC’s Diversity Federal Advisory Committee is expected to take up a new “overcoming disadvantages” category for designated entities at an Oct. 14 meeting. The proposal comes as the agency takes a wider look at its DE rules after an August decision by the 3rd U.S. Court of Appeals in Philadelphia, which sent part of the rules back to the commission for further consideration. David Honig, executive director of the Minority Media and Telecommunications Council, said in an interview that members of the advisory committee have spent many hours looking at ways to make the DE rules work better.
The coming auction of 147 FM construction permits has FCC-proposed procedures similar to those for previous broadcast spectrum auctions, a lawyer specializing in such bidding wrote. Auction 91, slated to begin March 29, features FM frequencies in 39 states and Guam and includes 37 allotments from last year’s Auction 79 that weren’t sold then (CD Sept 8/08 p7), Raymond Quianzon said on the Fletcher Heald blog. About 80 percent of proposed starting bids are $25,000 or less, and the highest is $100,000, he said. The FCC said comments on the auction are due Oct. 13, replies Oct. 27 in docket 10-183.
The FCC denied Globalstar’s extension request for a deadline to reach compliance with the agency’s ancillary terrestrial component rules, in a decision late Tuesday by the International and Wireless bureaus and Office of Engineering and Technology. The denial prevents the company from offering terrestrial services until it regains compliance with the ATC rules. Satellite industry executives found the order surprising, considering recent moves the agency has made to make the MSS/ATC spectrum more usable for mobile terrestrial broadband services. Some consider the move a demonstration of the commission’s commitment to enforce buildout requirements as the agency seeks to increase development in the band (CD July 16 p1).
Some 101 LTE network deployments are in progress or planned in 41 countries, the Global Mobile Suppliers Association said. GSA expects up to 22 LTE networks to be in commercial service by the end of the year. Another 31 operators are engaged in various LTE trials and pilot programs, GSA said. Governments around the world are allocating or preparing for the release of new spectrum like 2.6 GHz, and in the 700 MHz and 800 MHz bands, or re-farming existing spectrum or facilitating a combination of new and re-farmed bands, to support the delivery of LTE services to the mass market, GSA said. Several trial licenses have been granted in many countries to allow operators to familiarize themselves with the technology, capabilities and performance aspects, GSA said. Several tenders for spectrum licenses have been announced or confirmed in recent weeks for the granting of spectrum suitable for LTE deployments in Australia, Brazil, Chile, Poland and the U.K. Several spectrum auctions are scheduled for completion in the next few months, GSA noted. While the majority of LTE deployments are using the FDD standard, GSA claimed there’s been significant interest in the TDD standard.
Dish Network resumed talks with the FCC on revising former defaulter rules in preparation for coming spectrum auctions, a possible indicator the direct broadcast satellite provider is gearing up for spectrum bids. Dish asked the Wireless Bureau to refine bidding rules that require bidders with poor federal financial track records to put up significantly more money than those with unblemished record, said an ex parte filing. The commission is planning to auction off AWS-3 and 700 MHz spectrum in 2011 per the National Broadband Plan, though no official auction has been put in place and possible Congressional action allocating the D-block for public safety agencies (CD Aug 9 p3) could make an auction unnecessary.
A federal appeals court in Philadelphia tossed out two key provisions in rules for designated entities (DE) approved prior to the AWS-1 auction in 2006, which were also in effect during the 700 MHz auction that started the following year. Council Tree, which took the FCC to court, claimed victory Tuesday even though the Court of Appeals for the Third Circuit did not invalidate the results of either auction.
Small and midsize carriers urged policy changes to spur competition in the U.S. wireless market. The requests came in reply comments as the FCC embarks on preparation of its next annual report on wireless competition. CTIA, AT&T and Verizon again called the market genuinely competitive.
The FCC should avoid overly broad regulations “that ignore band-specific conditions” when devising spectrum-sharing rules, TIA said at a meeting with an aide to Commissioner Michael Copps. The commission should also protect primary licensees from interference and allow flexibility for “the implementation of new spectrum sharing technologies into regulatory” policies, the association said. Voluntary incentive auctions could free up spectrum for important wireless services while providing incumbents new capital, and Congress should authorize the auctions as soon as possible, said TIA. Proceeds of spectrum auctions should be used to pay for the public safety interoperability broadband network and infrastructure, it said. FCC proceedings on the wireless communications services, mobile satellite services, D-block, advanced wireless services and broadcast bands are a good start toward meeting future spectrum demands, it said. TIA said it supports the FCC’s and NTIA’s spectrum inventory plans and the Commerce Spectrum Management Advisory Committee’s “bifurcated approach to spectrum transparency."
Unless the FCC approves rules requiring interoperability for devices across all 700 MHz spectrum bands, it will encourage the Balkanization of 700 MHz spectrum, said a paper by the Rural Cellular Association submitted to the agency. “AT&T devices may only work on the lower B and C Blocks, which are predominantly held by AT&T, and Verizon Wireless devices may only work on the Verizon Wireless’ upper C Block,” said the paper, written by University of Maryland Economics Professor Peter Cramton. “Such restrictive practices used as a competitive blocking tactic would undermine competition, reduce consumer choice, slow the build out of broadband in rural areas, prevent roaming in the 700 MHz band, reduce the value of the 700 MHz A Block spectrum and the spectrum not held by AT&T and Verizon Wireless, and harm future spectrum auctions.” Failure to approve rules will “further cement the Big Two’s dominant position,” the paper said. “Excessive concentration will undermine competition and innovation, slow the deployment of services for rural and public safety customers, encourage warehousing of spectrum, and reduce revenues in future auctions. The American consumer and public safety user will not receive the economic benefits of global production of innovative devices for 4G on 700 MHz.” Verizon Wireless and AT&T “have a near-duopoly and allowing them to adopt restrictive device practices would not only undermine competition, but it would also reduce consumer choice and slow the build out of broadband in rural America,” said RCA President Steve Berry. “If the FCC is serious about bringing broadband to unserved and underserved areas, it must put an end to handset exclusivity and mandate interoperability."