Frontline Wireless wants the FCC to bring back a spectrum cap of 70 MHz by geographic area before auctioning the 1,099 licenses in the 700 MHz band in January. Frontline reminded the commission in comments filed late Friday the FCC had said in relation to the Alltel-Western Wireless merger that a single licensee having more than 70 MHz in a specific market was “likely to cause significant competitive harm.” Frontline Vice Chairman Reed Hundt was FCC chairman when the FCC instituted a spectrum cap of 45 MHz per market before auctioning the PCS licenses. The FCC under former chairman Michael Powell abolished the spectrum cap.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
Not only would a merger of Leap Wireless and MetroPCS face few regulatory hurdles, it likely would be considered procompetitive, since the merged carrier would be a more powerful rival to AT&T and Verizon Wireless, industry- watchers said. In a Tuesday letter to Leap executives and shareholders, MetroPCS proposed a $5.1 billion tax-free stock swap with Leap, to create a fifth national carrier.
FCC Chairman Kevin Martin and other commission members are open to alternatives other than an auction as the agency explores how best to use 2155-2175 MHz spectrum now that it has denied applications by M2Z and NetfreeUS seeking licenses to offer national broadband networks in the band, they indicates. A rulemaking notice is expected within days.
The FCC was poised at our deadline Friday to reject M2Z’s petition for forbearance, ending that company’s pursuit of 2.1 GHz spectrum to build a free, nationwide wireless broadband network without auction. A rulemaking on an auction for the spectrum is expected within days. The sale will be the third in a series of advanced wireless services (AWS) auctions.
Opening FCC designated entity rules to wholesalers will be Frontline’s “No. 1 priority” on a petition for reconsideration filing due Sept. 24, Frontline attorney Jonathan Blake said in an interview. The filing follows an Aug. 22 meeting between Blake and FCC General Counsel Sam Feder on an FCC rule restricting wholesale businesses from designated entity status. Unless dropped, that rule would “handicap” Frontline and other wholesalers’ ability to take part in the 700 MHz auction, Blake said, suggesting that harm would come to open access if that is the case.
Ten public interest groups told the FCC that M2Z’s proposal for a nationwide, free wireless broadband network at 2.1 GHz is attractive but has too many failings to support. Instead, the groups urged the agency to examine making the spectrum available for unlicensed use or through a license but with strict conditions imposing open access requirements. Google made similar arguments in a separate filing with the agency. The comments added to a flurry of activity at the FCC on an AWS III auction, short for advanced wireless services, of 2.1 GHz spectrum. FCC Chairman Kevin Martin late last week began circulating a proposed rulemaking on rules for an auction (CD Aug 28 p1).
FCC Chairman Kevin Martin began circulating among fellow commissioners a notice of proposed rulemaking describing rules for auctioning the 2.1 GHz spectrum. M2Z sought the spectrum through a license the commission would grant without auction. The commission is expected to portray the spectrum sale as the third in a series of advanced wireless services auctions.
Other contenders for 2.1 GHz spectrum say the FCC’s expected rejection of M2Z’s application shouldn’t mean the end for their proposals. M2Z’s plan has received the most attention. But other companies including NetfreeUS, NextWave, TowerStream, Open Range, McElroy Electronics and Commnet Wireless have rival proposals before the FCC to use the spectrum to offer wireless broadband.
Developments in technology may significantly increase the amount of usable spectrum, and make it easier to develop policies on the “equitable allocation” of that spectrum, a recent Congressional Research Service report concluded. “For the immediate future, Congress may choose to debate and act on questions such as reforming spectrum management and allocation mechanisms,” the report said. A fully developed policy requires consideration of matters such as international competitiveness, public safety and military needs, the role of wireless technology in economic growth and encouragement of new technologies to make spectrum use more efficient for society overall, the report said. “Choices made for 700 MHz could be far-reach in setting the direction for future policy decisions,” it said. The report analyzed the rules proposed for the 700 MHz auction and said a wholesale network, opposed by wireless incumbents and not included in FCC Chairman Kevin Martin’s proposed rules, “could provide more market opportunities for new wireless devices, especially wireless devices that could provide unrestricted access to the Internet.” The report also said the FCC’s proposed use of package bidding, also known as combinatorial bidding, would “favor new entrants and larger companies by allowing them to acquire licenses for the coverage that meets their business needs in a manner that is more efficient and less risky.”
By naming a board to oversee the public safety licensee to be created in the 700 MHz band the FCC will “strengthen the link” between the public and first responders, the National Emergency Number Association said Monday. NENA is one of 11 members of the board announced by the FCC in a 321- page July 31 order outlining band plan and service rules for the 700 MHz spectrum becoming available in 2009 when broadcasters leave it. Nine board members will represent public safety and government groups: The Association of Public Safety Communications Officials, the International Association of Chiefs of Police, the International Association of Fire Chiefs, the National Sheriffs’ Association, the International City/County Management Association, the National Governor’s Association, the National Public Safety Telecommunications Council, the National Association of State Emergency Medical Services Officials and NENA. The other two will be chosen by the FCC’s Public Safety Bureau and the Wireless Bureau. The FCC order said makeup of the board, which will have voting power over the public safety licensee’s decisions, “ensures that local public safety agencies and governments will continue to have a voice in the use of the 700 MHz public safety broadband spectrum, as the overwhelming number of first responders are local government employees or volunteers.” The public safety licensee will operate in partnership with the licensee getting one of the commercial spectrum blocks to be auctioned next year. (See separate item in this issue.) - - EH