Pai Considered Likely to Hold Out for 300 MHz of C Band Spectrum for 5G

New Street’s Blair Levin told us Pai will likely seek a sale of at least 300 MHz of spectrum through an FCC auction. “To formulate this policy, the commission has to address a number of issues,” Levin said: “The foundational one is how much spectrum will be reallocated but now a number of other issues have to be addressed that have not yet had a full public airing.” CBA’s single sealed bid proposal “garnered no support so it is likely that the sale will be done consistent with a traditional FCC auction process, and certainly, the FCC has demonstrated that it has world-best expertise in running spectrum auctions,” Levin said.

“The C-band item will end up being one of the most significant mid-band legacy projects of the Pai era FCC,” said Robert McDowell of Cooley. “If it looks as though more spectrum will be auctioned than less, that’s not surprising because of the insatiable need for mid-band. And having an FCC-run auction may help blunt criticism from some quarters.”

"Given all the stakeholders involved, reallocating some or all of C-band spectrum from satellite video distribution to terrestrial broadband service is necessarily going to be a complicated process,” said R Street Tech Policy Manager Tom Struble. The CBA proposal “would be quicker and easier than the alternative in which the FCC would conduct a series of reverse and forward auctions, similar to the 600 MHz incentive auctions, but significantly more complicated due to the full-band full-arc nature of satellite licenses,” Struble said. “The trade-offs are pretty clear,” he said: CBA’s proposal “would clear less spectrum, but the 200 MHz cleared would be available for broadband service far sooner than anything that would come out of the auction proposal. There are also a few other considerations, such as the bidding credits and government revenues that would come along with an auction, but which may not be available in a secondary-market deal.” A private deal like the CBA plan “makes the most sense, as it will free up substantial spectrum in the near term while still preserving C-band video operations with minimal disruption to those incumbent users,” he said.

Struble noted the FCC could do more later. “Even if a market deal is allowed to proceed now, that doesn't preclude a future incentive auction for the remaining 300 MHz of the C-band,” he said: “Even if the FCC insists on clearing more than 200 MHz for broadband, they could still allow a private sale now and then pursue an incentive auction later.”

“Time is of the essence,” said Doug Brake, Information Technology and Innovation Foundation director-broadband and spectrum policy. “The CBA plan may better internalize the costs of time than an FCC-led auction, but the worst thing would be if the commission sat on its hands waiting for consensus,” he said: “All of the options on the table have their advantages. I'm just glad if it's moving.”

“Anything less than 300 MHz represents a missed opportunity,” said Steve Berry, president of the Competitive Carriers Association. The 5G Plus Plan proposed by CCA, ACA Connects and Charter Communications “will reallocate at least 370 MHz of the 3.7-4.2 GHz band for terrestrial use. Our plan also ensures a transparent FCC-led auction. This proceeding represents one of the best remaining opportunities to unlock critical mid-band spectrum resources necessary to deploy next-generation technologies, particularly for the benefit of rural and remote consumers.” Other Washington policymakers share CCA’s desire “to efficiently and effectively utilize C-band spectrum,” Berry said.

Allocating 300 MHz for 5G is probably the right goal, said Tech Knowledge Director Fred Campbell. “It’s sufficient to ensure the U.S. has enough mid-band spectrum to compete internationally while ensuring the C band remains viable for satellite services. An FCC auction also makes sense from the standpoint of economic efficiency and for taxpayers. A plan with these elements would be a win for 5G and for Chairman Pai’s legacy.”

“C-band represents a tremendous greenfield opportunity to create a wireless win for both rural and urban American,” said Claude Aiken, president of the Wireless ISP Association. WISPA favors sharing the band with fixed point-to-multipoint operations. “If it auctions off 200 MHz of spectrum to mobile providers, the FCC will deliver billions to the Treasury and give valuable mid-band spectrum for enhancing 5G for urban America,” he said: “If shared-use is allowed in 300 MHz of spectrum, something we’ve strenuously advocated for, that would enable small fixed wireless providers, as soon as such an order is effective, to unleash gigabit speed services to unserved and underserved rural Americans.” Any plan without sharing “represents a concerning landscape for the fixed wireless industry,” he said. “It could cut them out of the picture, only exacerbating the digital divide,” he said.

“The 5G Plus Plan is the only plan that satisfies” all “reasonable expectations,” said ACA Senior Vice President-Government Affairs Ross Lieberman: Pai “will be well positioned to move forward with the 5G Plus Plan by the fall.”