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FCC TAKES FIRST STEP TO AUCTION LOWER 700 MHZ CHANNELS IN 2002

In long-awaited move to free up more spectrum for advanced wireless services, FCC approved notice of proposed rulemaking (NPRM) Fri. that begins process of tapping Ch. 52-59 in 700 MHz band for auction. Lower channels in that band must be auctioned before Sept. 30, 2002, one year after Sept. 12 auction for Ch. 60- 69. Commission approved item, with Comr. Tristani dissenting in part on voluntary band-clearing proposals to help relocate incumbent broadcasters ahead of 2006 digital TV deadline. FCC didn’t address budget blueprint by President Bush that would delay several wireless auctions, including proposed move of Ch. 52-59 auction until 2006.

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Notice tentatively concluded that Commission should use geographic area licensing in lower part of 700 MHz band and sought comment on size of spectrum blocks. NPRM asked whether 48 MHz to be auctioned in this band should be licensed as one block or divided into smaller parcels and on different geographic options such as nationwide or regional licenses and smaller service area sizes. Notice proposes adopting voluntary band-clearing policy for upper channels of band for Ch. 52-59. Wireless Bureau attorney William Stafford said comment was sought on whether different band-clearing policy should be adopted. Incumbent broadcasters will be allowed to remain in band until end of DTV transition.

Tristani’s partial dissent touched on objections she raised previously to voluntary band-clearing plan for upper channels. She has said she would prefer that requests to clear incumbent broadcasters be handled on case-by-case basis. Tristani said Fri. that in 1997 FCC adopted table of allotments for introducing digital TV, stipulating Ch. 60-69 spectrum could be recovered early. But she said policy indicated other reclaimed spectrum could be recovered only upon end of DTV transition. Policy was based on decision not to locate all stations’ DTV channel allotments in core broadcast spectrum of Ch. 2-51, so FCC put 165 DTV stations in Ch. 52-59 pending final payment in core channels. In 1997, when Congress postponed 52-59 auction, lawmakers didn’t require FCC to institute early spectrum recovery, Tristani said. “Unless Congress directs this agency otherwise, I do not believe we should change course,” she said. “The DTV transition should be guided by sound principles of spectrum management, not auction consequences.”

Chmn. Powell said proposal made clear agency would “continue to fully protect those who continue to broadcast in the band.” Proposals for band-clearing “are indeed voluntary.”

Acknowledging proceeding was “very difficult,” Comr. Ness said: “As we do this, we need to recognize we do not know at the end of this transition period what this band is going to be used for,” she said, which was why FCC was providing so much flexibility in proposed rules to accommodate technology changes. “My only hope and fear,” Ness said, is that as time draws closer to actual use of band “that we be very careful to ensure we are not creating a hodgepodge that ends up being very inefficient for its use.” She said she didn’t “see that as a worry today.”

FCC didn’t address potential impact of Bush budget proposal (CD March 2 p1) that would delay Ch. 52-59 auction to 2006. Budget blueprint has received chilly reception on Capitol Hill, although Administration officials have expressed interest in moving auction to time closer to when spectrum actually would be available. Existing 2002 deadline was established by 1997’s balanced budget act. About 100 analog and 165 digital TV incumbents now are on lower 700 MHz band, which FCC said was 4 times as many incumbents per channel compared with upper channels.

Proposal would cover allocations for new fixed and mobile wireless and broadcast services, including 3rd generation advanced wireless. One example of potential broadcast applications in 698- 746 MHz would be COFDM technology in cellular architecture, one official said. Item also says some broadcasters have been talking about mobile broadcasting applications, for which that spectrum could be used.