C-Band Clearing Share-the-Wealth Argument Seen Carrying Weight

Whether the C-Band Alliance plan embraces that idea remains to be seen. Asked about the Trinity proposal, CBA Head-Advocacy and Government Affairs Peter Pitsch said it's "legally and politically suspect" since earth stations aren't licensed.

The CBA may eventually endorse sharing proceeds of a private auction with other stakeholders, such as taxpayers and operators of earth stations and other satellites because otherwise its proposal is likely dead in the water, said a lawyer in the proceeding. He said the FCC instead would likely adopt its own private auction framework that includes that kind of stakeholder sharing.

The CBA plan doesn't have any compensation from a spectrum rights sale going to the Treasury "and that's just not going to happen," said LPN CEO Ravi Potharlanka. He said a few satellite operators pocketing potentially billions of dollars from a spectrum rights sale is "tough to swallow" and the likely billions in proceeds from selling or auctioning spectrum rights could incentivize all stakeholders and speed the clearing process.

It's natural to object to windfalls, but more important are the economic gains from 5G access to the mid-band spectrum, said Technology Policy Institute President Scott Wallsten. "You can make problems go away by paying people."

The C-band public notice issued in May (see 1905030033) raised various questions about earth stations, including whether the FCC could require proceeds from a spectrum sale be paid to earth stations as incentive to modify or relocate. The agency didn't comment. AT&T and Charter Communications are urging another PN regarding technical issues with clearing the 3.7-4.2 GHz band (see 1906120031).

New America Wireless Future Project Director Michael Calabrese said the PN seems to indicate the FCC decided the CBA proposal's problematic, with the agency wanting, among other things, spectrum sale money returning to the Treasury. The PN also could indicate the agency is taking a close look at alternatives to the CBA plan and considering doing with the band what was done with the broadcast TV bands, namely consolidating stations without paying a windfall. Calabrese said the agency also could be looking at relocating fixed satellite service incumbents from the bottom 200 MHz of the band without an incentive auction, with only relocation expenses paid.

CEOs of CBA members SES and Intelsat disagreed whether the PN points to the FCC signal about the CBA proposal (see 1905070018). House Communications Committee Chairman Mike Doyle, D-Pa., urged an auction of band (see 1905150061). Some free-market groups criticized the CBA plan for not returning proceeds to the Treasury (see 1904100018).

TechFreedom General Counsel Jim Dunstan emailed there's a strong argument for the U.S. recapturing the spectrum provided to satellite operators for free and auctioning it for wireless use, but there's also a strong argument for the FCC allowing a spectrum lease as a faster route to opening up the band to 5G. The lessors kicking some proceeds back to the federal government "starts to quiet the argument about needing to auction it off," but there's no way of knowing if that money is equal or even close to the actual value of the spectrum.

The FCC needs to do a better job of breaking down the terrestrial/satellite silos and encouraging spectrum reuse for both, Dunstan said. Technology like polarized antennas could solve a lot of the interference problems but hasn't been employed because of the service rules and silo mentality of the FCC and industry, he said.

Broadcasters

Broadcasters and broadcast attorneys said Trinity’s proposed plan is considered a long shot, and few broadcasters are closely following the C-band spectrum proceeding. TV station owners are concerned that a C-band plan not disrupt their ability to deliver content or cost them money, but most haven’t considered the matter a possible payday. NAB has taken the same approach, asking the FCC to protect existing C-band operations but declining to endorse a particular plan. Cumulus and Ion in recent weeks filed in docket 18-122, asking existing users be protected.

Potharlanka and Trinity and LocusPoint representatives in meetings with FCC officials recapped their proposal. They said reallocation of 200 MHz for 5G could generate revenue of about $26 billion and clear 300 MHz. While feasible, it would be "very difficult, expensive" and require big buy-in from C-band users, they said. They said stakeholders including satellite and earth station operators and taxpayers should all benefit from the reallocation. Their meetings were with aides to Chairman Ajit Pai and Commissioners Brendan Carr, Geoffrey Starks, Mike O'Rielly and Jessica Rosenworcel and with the chiefs of the International and Wireless bureaus. Wireless infrastructure companies Apex Towers, Btech and Prysmian Telecom Cables & Systems said an FCC-conducted auction of part of the 3.7-4.2 GHz band would be a slower way to repurpose the band than the CBA proposal.

A group of content companies that included Disney, CBS, Fox and Univision visited the FCC to make similar points. Broadcaster interest in Trinity’s coalition could increase if it starts to look more likely to succeed or if Congress gets involved, an attorney said. It's believed FCC action on a C-band plan is far off.

The CBA emailed that in its proposal and filings, it outlined commitments in line with many of the principles in the Trinity filing. It said it "committed to making whole those affected by the spectrum clearing process, considering the needs of all stakeholders, and facilitating a transparent transition. While Trinity calls for clearing 300 MHz of spectrum or more, the CBA has assessed in depth the multiple technical and commercial factors at play and concluded that, in order to protect existing services in the C-band, 200 MHz of C-band can be cleared for terrestrial mobile use within 18-36 months of a final FCC order. The CBA proposal presents the most effective, efficient and expeditious path forward to free mid-band spectrum for 5G while preserving existing satellite services to nearly 120 million U.S. households."

LPN's Potharlanka said clearing more than 200 MHz of the 3.7-4.2 GHz band will need incentives to incumbents to vacate or to use what they have more efficiently. He said relocating earth stations and installing filters could cost, in total, close to $100 million, still leaving "a lot of room for compensating."

Whether the proceeds issue will play a role in an FCC decision, TPI's Wallsten said the agency's job is to take into account all factors that could slow access to the C band, including potentially congressional objections to whatever route the FCC takes. Asked how much the spectrum sales proceeds issue is playing in the FCC's weighing of the competing plans, Pai's office didn't comment.