C-Band Alliance, Critics Lock Horns Over Satellite Midband Clearing Plan
The C-Band Alliance and a panel of critics of its midband clearing plan clashed on efficacy of a government-run spectrum auction and whether the FCC has ever allowed similar private spectrum sales, at New America event Tuesday. It was the "most unbalanced panel in the history of panels,” said CBA Head-Advocacy and Government Relations Preston Padden.
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The sides debated how unprecedented the CBA approach is. Padden said it's what was done in the past in spectrum sales by Straight Path and XO. Others called it unprecedented. "We disagree this is like anything else done before," said T-Mobile Vice President-Government Affairs Steve Sharkey from the audience. He said T-Mobile is working on a variation of its proposal that would let earth station operators, like satellite companies, opt to give up spectrum.
Padden disputes satellite operators got the spectrum for free, pointing to Intelsat buying PanAmSat and SES/GE Americom to get access to the frequencies. Padden and American Cable Association Senior Vice President-Government Affairs Ross Lieberman differed over what guarantees other spectrum end users like cable operators have of expenses being covered. Padden said CBA has been extremely clear it would cover such costs, and accused ACA of a "shakedown" trying to get a $200,000-per-cable operator payout guarantee for such expenses. Lieberman denied that.
The sides disagree on risk of lengthy lawsuits delaying the opening of the spectrum to 5G services. Google Senior Public Policy and Government Relations Counsel Staci Pies said any private sale like what CBA advocates will result in legal challenges. Charter Communications Vice President-Regulatory Affairs Colleen King said litigation risks are high, as the law dictates there must be competitive bidding when spectrum is being reallocated for new use. No FCC oversight would mean a longer process of clearing the band because of those challenges, and then Congress potentially having to step in and undo the sale, said Citizens Against Government Waste President Tom Schatz. CBA argued other C-band clearing plans would lead to legal challenges by satellite operators (see 1812170038).
The FCC letting four satellite companies sell underutilized spectrum will set a counterproductive policy precedent, sending a message to licensees they should always resist clearing, consolidation or sharing unless they get public revenue that in the past has always gone back to the public, said Michael Calabrese, director of the Wireless Future Program at New America. Congress has been clear it opposes such a "massive giveaway," he said, citing the Auction Reform Act and DTV transition bill passed after outcry over the FCC's 2001 order having TV stations give up analog channels for a share of 3G auction proceeds. Schatz worried about a precedent being set of proceeds going to companies that don't own what they're auctioning. A license "is not a property right," Schatz said.
Schatz and others said the FCC is best equipped with resources and expertise to effectively run an auction. Padden said the CBA proposal includes satellite operators launching new satellites and installing filters on up to 100,000 satellite dishes -- steps government won't take.
King said Charter worries a private sale would make it tough for it to get access to spectrum for 5G, and an FCC auction is "the fastest and fairest way" to get spectrum out. Forgoing a private auction might not optimize spectrum availability for 5G, Pies said. It would shift the public interest responsibility to private parties, but there's no telling if public interest would be protected.
ACA has concerns about spectrum sharing ideas and T-Mobile's proposal to reallocate 300 MHz or more, but the CBA plan "is in pole position," said Lieberman. He said the cable industry worries about how, under the CBA plan, decisions about how to identify and remediate harm would be made privately and that satellite operators seek to profit from a spectrum sale aren't in the best position to make those decisions.