Sen. Cory Gardner, R-Colo., plans to refile the Senate version of the Advancing Innovation and Reinvigorating Widespread Access to Viable Electromagnetic Spectrum (Airwaves) Act but told reporters he has no definite timeline. The proposal aims to identify spectrum for unlicensed use and free up mid-band spectrum for wireless industry purchase via an FCC auction (see 1802070054). Some anticipated Gardner and others would refile the bill soon (see 1902050046). House Communications Subcommittee Chairman Mike Doyle, D-Pa., also signaled interest in the bill (see 1901290032). “We're still working” with previous co-sponsor Sen. Maggie Hassan, D-N.H., on revised bill language, he said. Some elements of the legislation have been “picked up by the FCC” and other issues have since been “brought to our attention,” including satellite matters. The aim is to ensure “we get right” the spectrum language in the bill and “make sure that this is something that can pass,” Gardner said.
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.
Clearing C-band through a mix of sale of spectrum by satellite operators and an overlay auction of terrestrial mobile licenses is meeting some skepticism. Spectrum and satellite consultant Tim Farrar blogged Saturday that no side in the band-clearing debate is seemingly interested in compromise, though the sale-overlay auction mix is obvious. Michael Calabrese, director of the Wireless Future Program at New America, said even if the idea were practical, it would "be just another fig leaf [justifying] an unnecessary and unjustifiable windfall" for satellite operators.
The 1996 Telecom Act was a success but needs an update to connect those still unserved, former FCC officials and industry representatives agreed Sunday on a Telecom Staff Subcommittee panel. It’s unlikely to happen this Congress due to political divisions, they said. Former FCC Commissioner Mignon Clyburn and Gigi Sohn, former aide to ex-Chairman Tom Wheeler, urged states to stand up. Some state officials responded that pre-emption makes that difficult.
T-Mobile “remains optimistic and confident” regulators will approve its buy of Sprint, as reviews reach their final stages, CEO John Legere told analysts Thursday as the company reported Q4 results. The New York Public Service Commission applied jobs conditions as it voted 3-0 Thursday to clear T-Mobile/Sprint in the agency’s consent agenda, which requires no discussion. The deal is likely to be approved by the end of the first half of the year, Legere said: “If not in the bottom of the ninth inning, it’s in the late innings.”
A Wednesday Senate Commerce Committee hearing on 5G was dominated by lawmakers' concerns about the national security threat from China in its race against the U.S. President Donald Trump's administration is believed to be considering actions aimed at boosting U.S. competitiveness in 5G and other technologies, communications lobbyists told us. Trump barely mentioned tech during Tuesday night's State of the Union, matching officials' expectations (see 1901180032). Concerns about 5G security were also the focus of a Center for Strategic and International Studies event (see 1902060056).
Chairman Ajit Pai called the FCC's USF rate floor policy "crazy" philosophically, and cited plans for remedial actions. The idea that government forces rural telco phone rates up to reflect a national average, or lose high-cost USF support, doesn't make sense, he said in Q&A with NTCA CEO Shirley Bloomfield webcast from a rural telecom show in New Orleans. He hopes to "move with dispatch" to get fellow commissioners to agree with him on near-term relief and a longer-term solution. He recently criticized the rate floor and told lawmakers he planned to seek action in coming months (see 1901310036). Separately, Pai said he's seeking a "balance" on broadband performance testing that holds USF-backed providers accountable for their data-speed commitments while streamlining the process as much as possible to ease industry burdens. He said the FCC is focused on coordinating with the Agriculture and Commerce departments on broadband infrastructure efforts to ensure "we speak with one voice" so parties "aren't running over each other" and "we get the most bang for our buck." He said the commission wants to encourage more rural fiber deployment to feed nascent 5G wireless systems, which he believes have much potential in rural areas, though he recognized the business plan is difficult. It's important to create small geographic license sizes in spectrum auctions to "incentivize" bidding by small as well as big providers, he said: "Stay tuned." He spoke enthusiastically about the opportunities broadband can create in rural America through remote healthcare and other applications, noting when he was growing up in rural Kansas, his doctor father used to drive 45 miles to visit patients. His overall focus remains on ensuring every American is "empowered" in the digital age: "That requires broadband."
A Wednesday Senate Commerce Committee hearing on 5G deployment is likely to be a first indicator of the direction members want to take on related legislation this Congress, said lawmakers and officials in interviews. Senators may opine on a range of related issues, including T-Mobile's proposed buy of Sprint (see 1902050050) and 5G equipment supply chain security. Any comments President Donald Trump makes during his Tuesday evening State of the Union about infrastructure legislation could also be fodder for discussion. The hearing begins immediately after a Commerce executive session in Dirksen G50.
NTIA received more than 50 comments on a national spectrum strategy. They mostly stake out well-developed positions expressed elsewhere. Industry officials told us the comments at least provide a baseline for the administration as it plows into creating the plan.
The C-Band Alliance and a panel of critics of its midband clearing plan clashed on efficacy of a government-run spectrum auction and whether the FCC has ever allowed similar private spectrum sales, at New America event Tuesday. It was the "most unbalanced panel in the history of panels,” said CBA Head-Advocacy and Government Relations Preston Padden.
The FCC's second 5G auction, of 24 GHz spectrum, will start March 14. Upfront payments are due Feb. 19, said a Wireless Bureau and Office of Economics and Analytics announcement Thursday. The FCC plans a bidding tutorial by Feb. 15 and mock auction March 11. The 28 GHz auction ended last week with $702.6 million in provisionally winning bids (see 1901240034). The 24 GHz auction is widely expected to get somewhat more interest and higher bids.