FCC Chairman Ajit Pai could face dissents on parts of the C-band order set for a vote Friday. Commissioner Jessica Rosenworcel is considered the most likely to dissent, but Commissioner Geoffrey Starks also has concerns, industry and FCC officials said. Pai could push the most contentious parts of the order, including aggregation limits, to another order, to get a 5-0 vote on the key parts of the proposal. Approval is less of a question, with Commissioners Mike O’Rielly and Brendan Carr indicating they support the plan.
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.
Despite the broader focus on the C band and other mid-band spectrum, the FCC doesn’t appear to be moving toward action soon on the L band, industry and FCC officials said. But Ligado isn’t going away. As a result of recent financial developments, the FCC has until late 2020 to reach a decision. A lawyer close to Ligado said the company reached agreement with creditors on refinancing its debt, which buys time: The amendments extend Ligado’s cash runway and allow Ligado to defer its Inmarsat payments. All the FCC action at this point is in Chairman Ajit Pai's office and the Office of Engineering and Technology, officials said.
Seams are showing with the C-Band Alliance (CBA) that could affect selection of C-band relocation coordinator. Rather than as one alliance, the FCC's draft order should treat Intelsat, SES and Telesat as separate companies, Intelsat said in a docket 18-122 posting Wednesday. Meanwhile, Alaska carriers are pleased and Hawaii doesn't have concerns about being carved out of the FCC's C-band plan for the continental U.S.
FCC Chairman Ajit Pai released a compilation of comments Wednesday supporting his proposal for converting 280 MHz of C band spectrum to 5G through an auction later this year. Whether the order will include aggregation limits is emerging as a key issue on the eighth floor at the FCC. FCC Democrats Jessica Rosenworcel and Geoffrey Starks both appear to favor some limits, while Commissioner Mike O’Rielly is a hard no, industry and FCC officials told us.
The FCC acknowledges in the draft bidding procedures notice for the 3.5 GHz citizens broadband radio service band it will provide compensation to DOD for sharing costs, as specified by the Commercial Spectrum Enhancement Act. Industry and government officials said DOD considered that critical, especially since CBRS could be a model for other bands. But there was some confusion whether the FCC would say CSEA language applied for the auction of priority access licenses, to start June 15 (see 2002040051). Commissioners will vote on the notice Feb. 28.
Intelsat is getting shareholder pressure to hold out for sweeter terms with the FCC's C-band clearing plan, but it's considered unlikely to go that route. The FCC and Intelsat didn't comment. Competitive issues also continue to be raised in filings at the agency.
The FCC is likely to face a variety of suggested changes to its C-band clearing and auction order on the February agenda (see 2002050057), including arguments for limits on spectrum aggregation and trying to ensure earth station repacking isn't done in a slapdash fashion, we are told. Chairman Ajit Pai has support of the two Republican commissioners. Democrat Jessica Rosenworcel, a critic of the band plan, is seen as a likely no vote, but fellow Democrat Commissioner Geoffrey Starks may be undecided.
Senate Appropriations Financial Services Subcommittee Chairman John Kennedy, R-La., told reporters Thursday he plans to again meet with or talk to President Donald Trump to express his renewed ire about the FCC’s direction in planning an auction of the 3.7-4.2 GHz C band. Kennedy railed against FCC Chairman Ajit Pai’s current C-band auction plan during a Senate floor speech, criticizing the proposal to allocate about $15 billion of sale proceeds for relocation and incentive payments to incumbents on the frequency (see 2002060057). Commissioner Jessica Rosenworcel said she's supporting Kennedy’s C-band centric Spectrum Management And Reallocation for Taxpayers (Smart) Act (S-3246).
The FCC Wireless Bureau is meeting with industry on what to ask in an NPRM for its rural 5G fund, according to interviews this week and recent filings. The agency announced the $9 billion USF program in December to replace its Mobility Fund Phase II (see 1912040027).
Senate Commerce Committee Chairman Roger Wicker, R-Miss., told reporters Thursday he reached a deal to allow the chamber to pass the Secure and Trusted Communications Networks Act (HR-4998) by unanimous consent (UC) after the upcoming Presidents Day recess. The House-passed bill would allocate at least $1 billion to help U.S. communications providers remove from their networks Chinese equipment determined to threaten national security. Meanwhile, Huawei faces 16 DOJ charges it violated the Racketeer Influenced and Corrupt Organizations Act and stole trade secrets from six U.S. companies (see 2002130030).