FCC is expected to release within days notice of proposed rulemaking approved earlier this month that would open 71-76 GHz, 81-86 GHz and 92-95 GHz to commercial uses for first time, said Michael Marcus, assoc. dir. of FCC Office of Engineering & Technology. Potential uses for spectrum include high-speed wireless local area networks, broadband access systems for Internet and point-to-point and point-to-multipoint solutions. NPRM explores various options for allowing first nongovt. use of that spectrum: (1) Traditional Part 101 point-to-point licensing. (2) Area licenses with band manager, which would be subject to auction. (3) Unlicensed approach under Part 15. Item as adopted by Commission is neutral about which of those items was best and it was seeking comment from industry on preferred plans. Part 101 licensing probably would involve annual FCC fee and coordinator fee, Marcus said. In that scenario, coordinator would make decisions on whether proposed use would cause interference with other existing users, he said. “The coordinator in doing that would have to do that in the context of specific technical criteria that are in the FCC rules,” he said. FCC will seek comment on whether situation in which operators must rely on rule changes to keep pace with new technology would work in environment in which technology is changing so rapidly, Marcus said. Several developers made clear Wed. that they would prefer to see service rules that didn’t involve auctions. John Lovberg, chief technology officer of Loea Communications, which petitioned FCC for rule change, raised concern that auctions could “encourage artificial spectrum scarcity.” He said point-to-point licensing under Part 101 was solution that had appeared most amenable to NTIA and Interagency Radio Advisory Council. -- MG
As Washington awoke Wed. to realization that major long distance provider, Internet backbone operator, Web hoster and wireless operator faced possibility of bankruptcy for questionable accounting practices (see separate story, this issue), it also was not lost on many that WorldCom was active player in Washington lobbying scene. WorldCom spent just under $4 million in lobbying alone in 2001, and was 5th- largest campaign donator of all telecom companies. Its political action committee as of May 31 had nearly $2 million on hand for more donations. But on smaller scale, WorldCom also is major backer of various grass-roots lobbying efforts fighting for competitive local exchange carriers (CLECs) and ISPs on Capitol Hill and at FCC, including Voices for Choices, U.S. ISP Assn. and group born only last week, BroadNet. Executives of all 3 of those groups expressed confidence they would be able to continue if WorldCom funding were to dry up.
Consumer Federation of America (CFA) accused FCC of “attempting to illegally deregulate advanced telecommunications,” in comments filed on Commission’s rulemaking on regulation of broadband technology delivered over cable networks (CD June 19 p7). CFA, along with Tex. Office of Public Utility Counsel, Consumers Union and Media Access Project, said FCC didn’t clearly distinguish telecom information services, thereby ignoring distinction made by Congress. As result, agency’s definition of telecom as “part and parcel” or “integral” to cable modem service isn’t legal or technical conclusion, “but a business decision” made by cable companies, they said.
Following what wireless industry called “Herculean effort” in Congress that passed legislation delaying 700 MHz auctions, FCC followed suit Wed. by postponing bidding and planning for much smaller auction this summer, as directed by Congress. After whirlwind of Senate and House votes derailed timing of lower 700 MHz auction late Tues., attention on Hill and industry turned to larger spectrum issues that new law buys extra time for policymakers to address, including proposed spectrum relocation fund, 3G viability assessment, 800 MHz reconfiguration proposals. Rep. Pickering (R-Miss.) told reporters Wed. that moving bill that would create trust fund to reimburse federal agencies that had to relocate from bands auctioned to commercial users was “achievable priority” this year. Industry sources said they also expected release shortly of viability assessment from Administration that could free up close to 90 MHz, rather than 120 MHz that industry had sought, for 3G services, with trade-off being that bands would carry assurances of being usable in relatively short term.
FCC received more than dozen petitions for reconsideration of its March ultra-wideband (UWB) order, seeking review on wide array of issues, ranging from power limits to transparency of device testing that Commission had planned over next year. Petitions reflected similar split of views that had made original proceeding controversial, including filings from numerous UWB developers that cited types of devices that couldn’t be deployed under certain provisions they argued were more restrictive than needed to protect against interference. Among companies that urged FCC to tighten certain power limits and not add flexibility to others were Sprint, Cingular Wireless, XM Radio, Sirius Satellite Radio, Satellite Industry Assn., Air Transport Assn., Qualcomm. They cited continuing interference concerns, characterizing limits of final order as insufficiently protective for systems such as GPS, PCS wireless systems, satellite radio.
Dozens of cities and municipalities said FCC didn’t have authority to usurp local govt. control of public rights-of- way under either Communications Act or Constitution, in comments filed jointly at FCC Mon. in rulemaking on appropriate regulatory treatment of broadband access to Internet over cable facilities. Cities -- more than 55, including Nashville, Minneapolis and Oklahoma City -- said they would lose $1.8 million this year, more than $2.5 million in next 2 years and more than $50 million over course of 15-year franchise because of FCC’s declaratory ruling that cable modem service was “interstate information service” not subject to Title II requirements. That ruling, if it withstands court challenges (CD April 2 p1), means service wouldn’t be subject to local franchise fees.
CTIA Pres. Tom Wheeler said FCC decision to open a notice of inquiry on collection of wireless competition data was start of Commission effort to expand regulation of wireless industry (CD June 14 p4). Wheeler told Communications Daily that federal regulators would collect data from wireless industry in similar fashion as they do for monopoly phone services. “It’s the first step down a slippery slope towards oblivion,” Wheeler said. “It'd be used as a tool for regulation that would impose monopoly standards on a competitive market.” He said he was “dumbfounded, swept away, aghast,” at FCC decision. He charged federal regulators were increasingly anxious to impose new restrictions on wireless industry.
FCC approved notice of proposed rulemaking (NPRM) at Thurs. agenda meeting that for first time would allow commercial use of 71-76 GHz, 81-86 GHz and 92-95 GHz. Proposed rules would cover fixed point-to-point operations in that spectrum, which developers have been eyeing for rollout of gigabit-per-sec. broadband capacity with fixed wireless applications in areas where fiber capacity can’t reach easily. “The proposal we are making today will promote greater sharing between federal and non-federal users and encourage commercial deployment of technologies developed in military type environments,” said Office of Engineering & Technology Chief Ed Thomas. Potential uses of spectrum include high-speed wireless local area networks, broadband access systems and point-to-multipoint and point-to-point communications, FCC said. Spectrum now is undeveloped, although new technology developments have made commercial uses practical, officials said.
With court-requested date for FCC ruling less than 2 weeks away, question remains at Commission whether mobile carrier may seek compensation from IXC for long distance traffic terminated on wireless network. U.S. Dist. Court, Kansas City, last year stayed litigation brought by Sprint PCS against AT&T, directing companies to take those issues to FCC. U.S. Dist. Judge Nanette Laughrey said if Commission didn’t rule on referred issues by June 24, litigation would move forward. Several sources said this week that direction Commission would take on issue still wasn’t clear. Sprint PCS has argued in ex parte filings that no federal law or Commission policy bars it from recovering all termination costs from AT&T. But AT&T told agency in filing last week that “any decision to modify current compensation arrangements between CMRS providers and IXCs is better suited to the intercarrier compensation proceeding where all the relevant factors can be evaluated.”
Rep. Stearns’ (R-Fla.) “auction 35” opt-out bill (HR- 4738) is top legislative priority for Verizon Wireless, said Howard Woolley, vp-federal relations. Bill would compel FCC to return remaining deposits of bidders in NextWave re- auction. In March, Commission returned 85% of deposits from re-auction but concluded winning bidders, such as Verizon Wireless, should be held to nearly $16 billion on potential auction obligations until pending Supreme Court review."It’s very important to remove this roadblock to effective spectrum policy,” he said. Verizon Wireless is talking with members about bill and is communicating with “key senators” on introduction of Senate version, Woolley said. Verizon Wireless officials said “whole market” was paralyzed by uncertainty of auction 35. Another policy priority for Verizon Wireless is requirements that spectrum be vacated before it is auctioned, Woolley said. “Future auctions should be conducted only after the clearing process,” he said.