Democratic Commissioners Mignon Clyburn and Jessica Rosenworcel dissented Tuesday on an order creating a new Office of Economics and Analytics (OEA) within the FCC, which was approved 3-2 (see 1801230066). Commissioner Mike O’Rielly said the order was strengthened since it was circulated to ensure the office plays a major role in policy formation. Officials told reporters after the meeting the office likely would have under 100 staffers.
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.
The odds of the Supreme Court taking up the complaint by Dish Network designated entities (DE) SNR Wireless and Northstar Wireless about the handling of the AWS-3 auction bidding credits aren't clear, experts and interested parties told us. The DEs filed a petition Friday with the Supreme Court for writ of certiorari appealing the U.S. Court of Appeals for the D.C. Circuit's August ruling that upheld the FCC withholding AWS-3 auction bidding credits due to their too-close connections to Dish (see 1708290012). The FCC didn't comment Monday.
FiberTower agreed to return all of its 24 GHz licenses and part of its 39 GHz licenses to the FCC, in an agreement that settles FCC litigation. AT&T is buying FiberTower, with an interest in its high-frequency spectrum (see 1702010035). As part of the deal, FiberTower promised to terminate two court proceedings and pay $27 million to the U.S. Treasury. “This case presents a series of unique circumstances, which, when taken together, demonstrate that a waiver is in the public interest,” said a Wireless Bureau order in Monday's Daily Digest. “With the return of all of FiberTower’s 24 GHz licenses and the settlement of litigation, the 24 GHz band will be virtually clear of licenses and can be made available for initial licensing, enabling rapid deployment of 5G and next generation wireless services nationwide.” The return of 39 GHz “will assist in rebanding the 39 GHz band,” the bureau said. "Millimeter wave spectrum is important to our 5G strategy, and we expect to be the first U.S. company to introduce mobile 5G in a dozen markets by late 2018," an AT&T spokesman said. T-Mobile said in a statement Monday the order is disappointing. The FCC “is rewarding AT&T and Fibertower for Fibertower’s failure to construct,” emailed Steve Sharkey, vice president-government affairs. “This decision weakens the Commission’s ability to enforce its buildout requirements and further consolidates millimeter wave spectrum in the hands of AT&T and Verizon without a competitive auction.”
Verizon told the FCC it supports AT&T’s goal of a timely auction of 39 GHz spectrum but opposes its proposed solution, as presented in December (see 1712120010). “Two key features of the AT&T proposal are that incumbent licensees would be: (i) moved involuntarily if they do not participate in the auction and (ii) forced to win the bidding in each market to retain spectrum they already hold if they do participate in the auction,” Verizon said in a filing in docket 14-177. “Both of these features raise serious legal questions regarding incumbent licenses in the 39 GHz band, particularly for a company such as Verizon, which has agreed to invest billions of dollars to acquire this spectrum.” Verizon officials said they met with staff from the Wireless Bureau and the Office of Strategic Planning.
A coalition of companies interested in unlicensed use of the 6 GHz band filed an FCC report explaining how the companies believe the band can be opened without harmful interference to incumbents. Industry officials said the report responds to concerns raised by the FCC, particularly Julius Knapp, chief of the Office of Engineering and Technology, who asked for details on an interference mitigation strategy. Commissioner Mike O’Rielly indicated his support and urged action.
Commissioner Jessica Rosenworcel Wednesday urged the FCC to release a spectrum calendar, listing the dates of spectrum auctions. “Make public a #spectrum calendar, identifying what #wireless bands will be brought to market in the future,” Rosenworcel tweeted. “It can start with 28, 37, 39, and 3.5 GHz. The sooner we make our plans -- for licensed and unlicensed airwaves -- clear, the stronger our #5G future.” The FCC has been in limbo over auctions. Chairman Ajit Pai says the agency won’t hold any spectrum auctions until Congress approves legislative language that would let auction deposits be sent directly to the Treasury Department (see 1801160034). Pai says the Communications Act requires deposits placed by bidders in spectrum auctions be sent to the Treasury. “Recent regulatory requirements have dissuaded private institutions from holding upfront payments,” he testified to the House Communications Subcommittee in October. “Public institutions have indicated that they will not set up the special purpose accounts that would be necessary to offer such services. As a result, no financial institution will accommodate the holding of upfront payments in an interest bearing account for a large spectrum auction.” An FCC spokesman said Pai has been clear on the issue.
CTIA stressed the importance of high-frequency spectrum to wireless operators and urged the FCC to finalize rules for numerous bands, in a filing in docket 14-177 in response to a second Further NPRM on spectrum frontiers. “Millimeter wave spectrum will play a vital role in supporting the successful roll-out of next-generation products and services for American consumers, particularly as we race with other nations to lead in 5G, and the Commission’s efforts in this proceeding have been instrumental in achieving that goal.” The FCC should “promptly seek comment on auction procedures to allow the rapid auction” of the 24, 28, 37/39 and 47 GHz bands, it said. Also in CTIA’s crosshairs -- allocation of the 29, 31, 32, 42 and 50 GHz bands. The FCC should also “prioritize the identification, allocation, and licensing of additional spectrum for exclusively licensed terrestrial flexible use,” the group argued. The 26 GHz band should be “allocated for flexible, exclusive use licensing, as international entities have focused on this band for the deployment of 5G services,” CTIA said. Separately, CTA said the FCC should both make more spectrum available and lay out a timetable for future auctions. “These next generation services and applications will improve consumers’ lives, make industry more efficient, power smarter cities and government, foster American leadership, and create new jobs,” CTA commented. Making "this spectrum available brings opportunity for investment, innovation and competition, all of which the Commission must be mindful when finalizing the [millimeter wave] band service rules,” the Competitive Carriers Association said. If the agency gets the rules right, CCA members could “develop next-generation technologies,” from 5G to the IoT “on an equal playing field with the largest carriers,” it said.
Commissioner Mike O’Rielly said Monday he was asked by Chairman Ajit Pai to help build support on Capitol Hill for addressing FCC auction authority. “I’ve pushed as hard as I possibly can and will continue,” O’Rielly said, saying he testified on the importance of a fix and discussed it in Hill meetings. Sometimes Congress needs an “incident” to happen before it's willing to move, he told reporters. He also said he's confident the FCC's net neutrality repeal won't be overturned by lawmakers or courts.
T-Mobile officials met with FCC Wireless Bureau staff on antenna standard rules for the 70 and 80 GHz bands. “Since the conclusion of the incentive auction, T-Mobile has been rapidly expanding and strengthening its LTE network and laying the groundwork for a nationwide 5G network using its 600 MHz spectrum,” T-Mobile said in a filing in docket 10-153. “Critical to the success of these efforts is access to gigabit backhaul.” T-Mobile said it has found that the bands, with their light licensing approach and 10 GHz of available spectrum, are “ideally suited to providing rapid access to these essential links which will provide high speed connections between access points and T-Mobile’s core network.”
Wireless industry lawyers see no wiggle room on FCC Chairman Ajit Pai's position that the agency won’t hold any spectrum auctions until Congress approves legislative language that would allow auction deposits to be sent directly to the Treasury Department (see 1710240065 and 1710250026). The stance raises questions about when the FCC will hold the first auction of high-frequency spectrum, which is a key building block of 5G. AT&T and other industry players want an auction of the 28 GHz and 37-40 GHz bands by December (see 1711150022).