U.S. Economic Woes Clouding Outlook for 700 MHz D-block
ORLANDO, Fla. -- Few public safety systems are investing in upgrades to their emergency communications systems given the decline in the economy, Association of Public-Safety Communications Officials President Chris Fischer said in an interview at the group’s Winter Summit. Fischer said those same economic issues weigh heavily as the FCC contemplates rules for a second auction of the 700 MHz D-block for a national public safety broadband network.
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The FCC’s first D-block auction fell flat last year when no company met the commission’s minimum bid price to buy the 10-MHz band and build out a network in cooperation with public safety. The FCC is examining draft rules for another auction. Officials at the APCO conference conceded the FCC is unlikely to act until a new chairman is in place, which could take several more months. Meanwhile, APCO and other public safety officials plan meetings with the three current FCC commissioners.
Fischer said the FCC appears to be asking the right questions. “We know some of the reasons the auction didn’t go before,” she said. “Are there are some things we can do without compromising public safety to make [the spectrum] more attractive? There’s a concern about the economy right now. Who can afford to buy the spectrum? I think it’s a time to kind of reflect and wait and see.”
While the auction was at one point expected to occur this spring, a later starting date may help in finding a carrier willing to bid on the network, if economic conditions improve, Fischer said. “The economy is very tough right now for many public safety agencies,” she said. “It seems like a lot of public safety agencies are status quo right now. … People are sort of holding the line. … People are losing their jobs throughout the cities and counties. It’s hard to justify increasing your technology budget when you're laying off workers who provide service.”
Robert Gurss, APCO director of legal and government affairs, said a key to finding a bidder for the D-block will be the FCC providing clarity about what requirements owning the spectrum will entail, such as under what conditions public safety will get priority access, how robust the network must be and what the coverage requirements will be. Gurss said he hoped the FCC will schedule a new auction relatively quickly, but he conceded that a new chairman and commissioners will take some time to come up to speed. “It’s going be a little ways down the road,” he said. “Let’s all hope the economy is better at that point.”
Gurss said the lack of specificity about requirements prior to the original auction resulted in a failed sale. “Potential bidders didn’t know what they were going to have to do,” he said. “That combined with the fact that the auction took place when the credit crunch … was starting to look bad, those facts discouraged bidders.” What the rules will be is unclear, he said: “I would say everything is on the table. The only thing we know for certain is that there is spectrum allocated for public safety broadband.”