FCC'S MARTIN: ‘MINIMAL’ TRANSITION IF SPECTRUM CAP IS RELAXED
FCC Comr. Martin said Wed. there could be need for “reasonable and minimal” transition if Commission relaxed wireless spectrum cap, issue expected to be on agenda for Nov. 8 meeting. “There might be a way to do that in some minimal transition period so we figure out how we're then going to be doing a case-by-case analysis in this context where we haven’t done it as much because we've had a prophylactic rule,” Martin told press breakfast in his 8th floor office. Bush Administration, in letter last week from NTIA Dir. Nancy Victory to FCC Chmn. Powell, had called for immediate repeal of wireless spectrum cap, which is set at 45 MHz in most markets and 55 MHz in rural areas. CTIA Pres. Tom Wheeler this week reiterated his group’s call that cap be rolled back immediately, although apparently early draft proposal circulating on 8th floor of agenda item would have provided transition period of 12-18 months during which ceiling would be raised to 55 MHz everywhere. Martin said “generally the Commission should be moving toward the kind of case-by-case analysis where you are able to look at the actual impact in the market that is occurring.”
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Commission has statutory obligations to meet in reviewing license transfers for wireless transactions as it does in other areas, Martin said. However, he said one “significant factor” in how wireless market differs from others is that “the government controls the access to the spectrum and therefore there are certain inherent barriers to entry so to speak.” Minimal transition period “might make sense so we can put in place the kind of analysis we would be going through,” he told reporters in Q&A session. Martin said he advocated spectrum policies that provided users with flexibility for selecting most efficient uses. On pending secondary markets proceeding at FCC that would pave way for easier leasing and other options for spectrum, he said: “We should be trying to move quickly on it.”
Martin said he was interested in survey by National Telephone Co-op. Assn. (NTCA) that showed rural telcos had difficulty obtaining new spectrum (CD Oct 31 p6). Commission should be sure its spectrum policy is flexible so “consumers in rural areas have access to the same services that are available in urban areas,” he said. He said that as FCC looked into related proceedings, such as one on secondary markets, it might end up addressing NTCA’s concerns as well.
Asked whether his views were generally similar to those of his former boss, ex-Comr. Harold Furchtgott-Roth, Martin said Furchtgott-Roth was his “mentor” but there were differences in their approaches on some issues and more differences probably would be evident in future. For example, Martin said, he isn’t as opposed to Commission’s adding conditions to its approval of mergers as was Furchtgott-Roth, who viewed merger approval as simply approval of license transfers. However, he said it was important to him that any conditions placed on mergers be closely related to perceived harm. In past, Commission sometimes added conditions that weren’t directly correlated to harm allegedly created by merger, Martin said. Instead, he said, agency looked at it as “balancing act,” balancing harm with good, but without tying 2 together. That leads to parties’ seeking redress of all their unrelated “pet peeves” through agency’s merger approval, he said.
FCC should act soon on cable access rules, Martin said, complaining that notice of inquiry had languished in Cable Bureau for more than year. He said such holdups made it difficult for companies to institute business plans and raise capital when they had no idea how they would be allowed to proceed. Cable Bureau Chief Kenneth Ferree said in late July that access was “high priority” (CD July 26 p4) and new ownership rules would be proposed in “month or 2.” Martin said Commission needed to grapple with issue soon. “That’s the kind of regulatory uncertainty that can make it difficult for companies who are trying to go into the capital markets to get enough money to build out new facilities,” he said. He didn’t indicate how he thought issue should be resolved, other than to say that Commission should be cautious on subject.
Asked about DirecTV-EchoStar merger, Martin said deal raised “significant concerns” although he declined to give specifics because Commission hadn’t received license transfer applications from companies. In general, though, he said proposed deal merited careful look to ensure that consumers were protected.