EVANS ASSURES INDUSTRY OF FULL CONSIDERATION OF ALL 3G OPTIONS

As part of flurry of activity on issue in recent days, Verizon Wireless submitted emergency petition Wed. to FCC. Carrier asked agency to defer action on pending applications by Multipoint Distribution Service (MDS) and Instructional TV Fixed Service (ITFS) licensees to provide 2-way services until 3G decisions were made. On separate front, one industry source indicated General Accounting Office had initiated report examining Dept. of Defense spectrum that will compare Pentagon analysis with industry evaluation of spectrum sharing and segmentation opportunities. DoD recently said nonspace systems couldn’t vacate or segment 1.7 GHz band until at least 2010. However, industry analyses have been more bullish on potential for sharing that would mitigate interference issues with military operations.

In emergency petition, Verizon Wireless said FCC Mass Media Bureau announced this week it would begin granting those applications as early as next week. Verizon called step “premature” because spectrum at issue in 2,000 pending 2-way applications was subject of 3G notice of proposed rulemaking at Commission and decisions haven’t yet been made on whether spectrum in 2.5 GHz occupied by MDS and ITFS or at 1.7 GHz occupied by military would be used for 3G. Bureau announcement “that it is ready to grant the applications at the earliest possible time after what can only have been a cursory review reveals no acknowledgment of this obvious problem,” Verizon said. Carrier is advocating possibility of segmentation band plan for 2-way fixed and mobile services. “It makes no sense to grant applications to use certain bands, only to rescind those grants later on if reallocation so requires,” carrier said.

Meeting Thurs. was Evans’s first with industry groups on 3G, although he was questioned on issue during his Senate confirmation hearing. U.S. spectrum needs also came up in meeting Fri. that Evans had with high-tech executives in Silicon Valley and was discussed at White House technology summit this week, spokesman said. Numerous industry representatives characterized meeting as positive. “It’s a good start,” said Grant Seiffert, vp-external affairs & global policy for Telecommunications Industry Assn. (TIA). “He understands the importance of 3G and what it means to be competitive in the global economy.” Evans made clear in meeting that “we will continue to move forward and all options are on the table,” Seiffert said. Several sources indicated meeting with Evans appeared to be preemptive strike to assure industry that despite strenuous DoD concerns, all options still were under consideration. “I think it’s still all on the table,” source said.

Meeting included representatives of AT&T Wireless Service, Cingular, CTIA, Ericsson, Motorola, Nokia, PCIA, Qualcomm, Sprint PCS, TIA, Verizon, VoiceStream, WorldCom. CTIA Pres. Tom Wheeler called meeting “substantive and productive.”

Reports set for release today are follow-ups to drafts issued last fall. FCC interim report had pointed to technical challenges of spectrum sharing in MDS and ITFS bands. NTIA interim report had outlined potential spectrum sharing and segmentation opportunities in some parts of spectrum between military users and wireless carriers. But Pentagon sent letter to Evans last month raising concerns that loss of access to spectrum beyond that it already had relinquished as part of the 1993 omnibus budget act and 1997 Balanced Budget Act would jeopardize military operations (CD March 26 p5). DoD report that expands on that theme is expected to be included in final NTIA document. Sharing in 1755- 1850 MHz isn’t possible due to “predictable mutual interference over large geographic areas and major metropolitan centers,” letter said. It spelled out inability of Pentagon to vacate or segment band until at least 2010 for nonspace systems and at least 2017 for space systems.

“This Administration is just beginning to get a team in place and tackle this,” said Evans spokesman. “The process will involve continuing to work with industry, with Congress, with [Defense] Secy. Donald Rumsfeld, with [FCC] Chairman Powell and interested parties to try and come up with a solution,” spokesman said. Several industry officials said it was particularly positive sign that Evans had taken personal interest in issue because President Bush hasn’t yet named permanent director of NTIA.

Under timelines set out in executive memorandum by Clinton White House last Oct., FCC and NTIA are working toward July date for identifying 3G spectrum, with ultimate target for auctioning licenses by Sept. 30, 2002. Some industry observers have questioned whether Bush Administration would be able to adhere strictly to original targets, particularly as Dept. of Defense begins top-to-bottom review under Secy. Donald Rumsfeld. But sources said Evans provided no indication at Thurs. meeting that timelines would slip.

Meanwhile, National ITFS Assn. (NIA) told FCC in supplemental comments filed March 20 that costs of relocating incumbents to make way for commercial wireless carriers could run as high as $19 billion over 15 years. National ITFS Assn. said cost of replacing transmission and reception facilities and making them operational so that similar coverage could be provided compared to existing operations would be “well over” $3.6 billion. NIA said that assumed that 2,400 current ITFS stations eventually would migrate to at least 600 transmitter sites. Cost of reimbursing those licensees for lost operational and maintenance support “caused by the destruction of the partnership between education and the fixed wireless broadband [sector] would be nearly $8 billion,” NIA told FCC. In addition, if fixed wireless broadband providers ceased leasing excess ITFS capacity, educators also would lose revenue. Cost of reimbursing ITFS licensees for lost financial support for ITFS operations and other educational endeavors, such as developing course software for broadband distance learning, would top $7 billion, NIA said.