FCC OKs Use of 900 MHz for Broadband, Among Other 5-0 Items

Like the first FCC meeting since the start of the pandemic two months ago (see 2003310067), this one was brief, lasting 20 minutes. Commissioners released statements on some items (see 2005130008). Last month, commissioners held something closer to a full meeting. Commissioners Mike O’Rielly and Brendan Carr held news conferences but not Chairman Ajit Pai nor staff or the agency's Democratic members.

There's interest in the band among big private utilities, municipal utilities and co-ops, said Anterix President Rob Schwartz in an interview. Utilities face “the same kind of challenges,” he said. Better communications is also important to cybersecurity, he said. “There are tremendous benefits of networks being networked,” O’Brien said: “The essence of LTE is the whole is greater than the sum of the parts.” Utilities face “change that is absolutely unstoppable,” he said. Anterix bought 900 MHz spectrum from Sprint six years ago and has long advocated the rules.

“Not unlike what swept through telecom in the ’80s and ’90s, change is sweeping through the utility industry, driven by technology and, of course, driven by the need to reduce as much as possible carbon emissions,” Anterix CEO Morgan O’Brien said. “That requires fundamental changes in the architecture of the grid.” The grid has been “one way” for 100 years, but because of distributed generation of power, “now it’s really a two-way phenomenon,” he said: “There has to be a much more sophisticated communications system.”

“900 MHz users are enthusiastic about the possibilities that reliable broadband will open for them,” Pai said in a statement: “Broadband access will enable industries to leverage technologies for applications like private LTE networks -- next-generation networks that can enable Voice over LTE, grid resiliency and monitoring, wildfire mitigation, enhanced cybersecurity, and more. Utilities are eager to use broadband to modernize the electric grid.”

Commissioner Statements

The agency opens a broadband license “in the heart of the 900 MHz band, which should allow for and even expand innovative uses precluded by today’s choppy band segmentation,” O’Rielly said, also in a statement. O’Rielly prefers restructuring the band through private sector negotiations.

“To the extent that agreements cannot be reached with the last remaining incumbents, they can be relocated if provided with comparable facilities, which essentially means retuning and purchasing new equipment at the broadband licensee’s cost,” O’Rielly said: “While mandatory relocation is generally troubling, in this instance, other mechanisms to solve the holdout problem, such as an incentive auction, would be overly complex and costly due to the diversity of incumbents, varied offerings, and differing amounts of spectrum held.”

The hardest place on the spectrum chart “to unlock value” is low band, Carr said: Its “distant propagation makes it inexpensive to deploy and so was a logical starting place for early generations of radio communications. As a result, the low-band is home to many old incumbencies,” some of “value to Americans,” others “held back by the FCC’s dated licensing regimes and archaic use cases.”

The regulator was right to adopt “a negotiation-based framework” for transitioning the spectrum, said Commissioner Geoffrey Starks: “While I’m optimistic that our approach will successfully transition the band, I also look forward to learning how our approach is working.” The FCC later posted commissioner statements.

“Once again, this season on Spectrum Wars has me supporting Ajit Pai,” Public Knowledge Senior Vice President Harold Feld tweeted: “My new plan for telecom is to keep the FCC doing spectrum policy until the season finale.”

The commission also partially lifted the 900 MHz application freeze “to permit existing licensees to file applications to relocate their narrowband operations as part of a transition plan,” said a news release. The Enterprise Wireless Alliance appreciates the commissioners' action, said President Mark Crosby. "It evidences their realization that business enterprises and critical infrastructure entities are a fundamental component of our country's wireless ecosystem and, like the mission critical and consumer sectors, deserve access to spectrum capable of providing broadband solutions unique to their industrial tasks."

Fees and Satellites

The FCC devotes sizable resources to dealing with the increasing number of U.S. market-access petitions for foreign-flagged satellites, and they benefit from much of the same regulation and oversight as U.S.-flagged satellites, said the regulatory fees order adopted 5-0. Unanimous approval of charging regulatory fees for foreign-flagged satellites had been expected (see 2005080046).

Commissioners approved an NPRM on proposed FY 2020 regulatory fees. Carved out in the approved order were foreign satellites communicating with U.S. aircraft outside the country or with U.S.-licensed earth stations for tracking, telemetry and command purposes, O'Rielly said.

Saying he's sympathetic to those facing higher fees, O'Rielly said he's pleased the VHF broadcast fee modification got in, as expected (see 2005120055). Less welcome were fee increases for direct broadcast satellite providers, “symptomatic of a broken approach,” and extending the satellite fee-charging envelope to cover foreign-flagged satellites. Answering our questions during his news conference, O'Rielly said there's danger of other nations doing likewise and charging regulatory fees for U.S.-flagged satellites, and the agency needs to keep watch on the order's effects. He said such response wouldn't be immediate and it might be several years before the ramifications of the order are fully known.

The NPRM pointed to regulatory rate relief in past disasters like hurricanes in 2017 and 2018, such as extended payment terms at nominal interest rates. It seeks comment on doing similar or additional relief during the COVID-19 pandemic.

The earth stations in motion (ESIM) order also was approved 5-0. O'Rielly said it's still unknown what proliferation of ESIMs and large non-geostationary orbit (NGSO) constellations could mean for harmful interference for terrestrial wireless operations in the 28 GHz band. He said the agency needs to seek further comment on whether its out-of-band emissions rules are adequate for NGSO ESIM communications.

Asked after the meeting about national security pushback on the FCC's Ligado approval (see 2005060065), O'Rielly said the agency's work on the issue "was credible and straightforward" and justified his vote. "It wasn't something we did in the dead of night or over a weekend," Carr said. "I'm very comfortable with our approach." He said he will respond to the letter questioning the Ligado decision from House Armed Services Chairman Adam Smith, D-Wash., ranking member Mac Thornberry, R-Texas, and others.

Carr and O'Rielly were dismissive of litigation challenging the C-band clearing order (see 2005050047). "The FCC gets sued all the time ... so it doesn't surprise me," O'Rielly said, saying issues that were potential exposure points legally were addressed "in a thoughtful way." Echoed Carr, "Litigation on a big-ticket high-dollar item is to be expected."

Meeting Notebook

An order allowing broadcasters to provide public notice of applications through web links rather than paid newspaper advertisements was also approved 5-0. As expected (see 2005080050), it doesn’t specify where on a station’s homepage a tab or link to the notice must be located, and provisions that would have applied such requirements to mobile apps were left out. “We acknowledge that some mobile users rely on apps, but we note that consumers using their mobile devices for Internet access will use devices that have web browsers that will allow them to access broadcaster information,” the order said. The new rules “will enhance public participation in the licensing processing,” said an agency news release. O’Rielly said in the only commissioner statement on the item that he would have preferred something less prescriptive but praised the final version for not including the rules for apps or placement on the homepage. O’Rielly remained skeptical of requiring stations keep permanent links on their pages even when no applications are pending, and cautioned the online notices shouldn’t become a new source of liability for broadcasters. “Any attempts to turn this feature into a compliance trap would be contrary to this Commission’s decision, completely wrongheaded, and based on constitutional quicksand,” he wrote. "Today’s vote will help bring the licensing process for local radio and TV stations into the modern age,” said NAB.

Carr declined to say when the FCC may act on changes to wireless infrastructure rules. Other FCC officials said the agency appears poised to act on CTIA and Wireless Infrastructure Association proposals to accelerate siting of towers and other 5G facilities, at commissioners' June 9 meeting (see 2005110029). “No news to break today on timing,” Carr told reporters, answering our query. He said steps the FCC has taken, including on infrastructure, helped networks cope despite the stress imposed by COVID-19. The FCC has to balance interests on the 2.5 GHz tribal window, he said. “The longer we hold this window open, potentially, that could hold back people getting access to that spectrum,” he said: “We already have a pretty wide window to let people come in.”

O’Rielly said his main concern about the citizens broadband radio service auction, to start July 23, is the status of the credit markets. “I am really interested in getting the CBRS auction … moved forward as soon as possible,” he told reporters, answering our question. “There is great pent-up interest” in CBRS. O’Rielly is closely tracking the 2020 World Telecommunication Standardization Assembly, WTSA-20, to be in Hyderabad, India, on Nov. 17-27. “I haven’t engaged yet and haven’t been invited, so we’ll just have to see how that plays out.” Historically, some FCC officials have attended WTSA, he said. “It depends on the topic,” with some emphasis given to internet issues, he said. O’Rielly attended parts of the last two World Radiocommunication Conferences and has raised questions about ITU governance, which is part of WTSA (see 1912180045).

O’Rielly said all spectrum decisions now involve moving incumbents and the issues are becoming more “hot tempered.” “Spectrum is becoming more difficult and finding new bands and new opportunities … is more difficult than ever before,” he said: “There’s been no greenfields to pick from.” O’Rielly said he hasn’t heard anything from the White House on his month-ago spectrum letter to President Donald Trump (see 2004090047). “I wasn’t exactly expecting a reply,” he said. O’Rielly said he's considering whether the FCC should extend the 2.5 GHz tribal window, as urged by Commissioner Jessica Rosenworcel (see 2004290055). The window is slated to close Aug. 3. “The window should only be open for so long,” he said: “It’s not a perpetual window that we just hang out there forever. … I wasn’t the biggest fan of the window in the first place.”