DoD EXPRESSES DOUBTS ON 3G RELOCATION, DOESN'T RULE OUT SHARING

In sign of tough decisions that remain for federal policymakers, Nutwell, who is deputy asst. Secy. of Defense for command, control, communications and space systems, didn’t rule out some sharing options but made clear that DoD believed “full band sharing is not possible due to mutual interference and coordination difficulties.” He said DoD “supports” NTIA report but “government spectrum should be the last resort.” Detailed DoD report was twice as long as original filing. Before any additional spectrum is earmarked for advanced wireless services, Nutwell said, “the case must be made, and has yet to be made, that the spectrum currently allocated for wireless services or readily available to the FCC for allocation is not adequate to meet 3G needs.” He said all potentially available FCC bands should be explored, as well as options such as deploying 3G services in existing commercial wireless spectrum.

While reports provided more details on costs and technical implications of sharing and segmentation, several industry sources said it still was far from clear how issues would be reconciled among agencies. “I don’t see anything in the report that would suggest that the Commission is going to offer up spectrum,” one wireless source said. “There is very little desire on the part of the Commission to disrupt the deployment of MMDS and they can’t figure out a way you can’t just take 60 MHz without completely disrupting deployment in some markets.”

“The challenge is trying to figure out who is going to be the leadership,” said Rob Hoggarth, PCIA senior vp-govt. relations. At NTIA, for example, permanent director hasn’t yet been named by Bush Administration, he said. “The reports provide a significantly higher level of detail, which only suggests the real challenge that we have, which is that all the U.S. spectrum is occupied,” Hoggarth said. At center of competing public policy determination is which incumbents are relocated and how in light of national defense and broadband wireless interests, he said. “It’s a real challenge to the new Administration.” Another source said expectation was that there would “have to be a 3-way discussion” among DoD, Commerce, FCC. “You're certainly not going to just force DoD.” One positive element of NTIA report was extent of sharing and relocation possibilities discussed, source said. Several industry officials said they were heartened by cost estimates DoD provided, which they said they had expected to be much higher. However, another source said “we would have liked more specificity” on timelines for band plans that were more realistic than 10 years from now or longer. “One year is a lot of time in the wireless industry,” he said. “One month is a lot of time in the wireless industry.”

“Limited sharing and band segmentation between commercial and government users may be possible under certain conditions,” acting NTIA Dir. John Sopko said. He called report start of work to address 3G issues. NTIA report offered 3 options, acknowledging that DoD analyses said extensive use of band by military coupled with 3G systems would make uncoordinated sharing “infeasible.” Options were: (1) Sharing proposal in which 1710-1850 MHz would be split into 3 segments of 1710-1755 MHz, 1755-1805 MHz and 1805- 1850 MHz. Wireless handset units would share and transmit in first segment, with govt. retaining exclusive use of middle segment and 3G base stations sharing and transmitting in 3rd. Report said that wasn’t viable, due in part to difficulty of sharing satellite control uplinks with 3G base stations.

(2) 3G systems would share and transmit in 1710-1790 MHz in phases with base stations transmitting in frequency bands above 2110 MHz. Federal govt. would keep exclusive use of 1790-1850 MHz. That option would implement 3G sharing in phases with wireless operators needing to account for 16 federally protected sites, including satellite controls. That option eventually would make up to 80 MHz available for mobile in 1710-1790 MHz to be paired with equivalent spectrum in higher band. (3) Federal operations would vacate 1710-1755 MHz in stages. In that case, 3G systems, paired with spectrum above 2.1 GHz, could have unrestricted operations nationwide. That alternative would require 45 MHz of comparable replacement spectrum below 2690 MHz for DoD tactical radio relay systems, report said. Total estimated relocation costs would be $2.19 billion, although Pentagon and NTIA officials made clear that they still were gathering cost figures for that recently emerged alternative. First option would carry $3.4 billion in relocation costs and 2nd option $4.5 billion, report said.

FCC report contained similar bottom line on interim version released last fall: Segmentation or sharing between 3G and Multipoint Multichannel Distribution Service (MMDS) and Instructional TV Fixed Service (ITFS) presents “serious challenges” without “severely disrupting” incumbents. Study cited industry estimates that relocation or segmentation plans could cost MDS and ITFS users up to $19 billion over 10 years. Cost of relocation could range from $10.2 billion to $30.4 billion, study said. “These costs would need to be balanced with the broad-based benefits to prospective users and the national economy of deploying both 3G and fixed wireless broadband systems,” report said. Industry source said final Commission report provided much more detail than earlier version on alternative spectrum for relocating incumbents and infeasibility of that option. Alternative bands for reallocation in report included 3700-4200 MHz and 5925-6425 MHz that were heavily used on primary basis for fixed service and fixed satellite service, which report said meant sharing wasn’t viable.

Report also evaluated 6425-7125 MHz, used by fixed and fixed satellite services and TV translator relay stations. Sharing wouldn’t be possible in those bands, it said, and if ITFS/MDS users were relocated there, incumbent users of 202 MHz of spectrum would have to be cleared to higher bands. “Relocation of the satellite links to other spectrum would be extremely disruptive, would take several years and would be extremely costly due to the need to construct new satellites and replace earth stations.” Relocation of terrestrial fixed and mobile operations would be less expensive, but finding replacement spectrum also would be difficult, FCC said. Similar relocation problems were raised in 10.7-13.25 GHz, in which fixed point-to-point operations are deployed extensively.

“Make no mistake: We are committed to working together at the highest levels to meet the challenge of finding the spectrum needed to serve the private sector’s needs, as well as the needs of our nation’s defenses and other critical government services,” Commerce Secy. Donald Evans said. He said he planned to work with FCC Chmn. Powell, Defense Secy. Donald Rumsfeld and Congress to identify solution.

FCC Comr. Furchtgott-Roth urged that final decision take into account granting “additional spectrum usage rights, not fewer.” He said: “Forced relocation of fully authorized commercial licensees is one of the most dramatic examples of government diminishing licensees’ rights.” He said MMDS and ITFS licensees “have waited for years” for flexibility and leasing rights they now have. “Tampering with this relationship (which the FCC itself created and encouraged) undermines certainty and will retard the development of the services we have spent years incubating.”

CTIA Pres. Thomas Wheeler said he was encouraged by Evans’s comment that report was “one early step in an ongoing, comprehensive process.” Wheeler said: “That process must include a dialog among all parties rather than the kind of unilateral assertion of the status quo put forth by the Defense Department.” Verizon Wireless Vp Howard Wooley said he remained impressed with Evans’s “personal commitment” to identifying spectrum for 3G. “That is the thing that I'm focused on, based on the meeting yesterday,” he said, referring to meeting held by Evans with wireless industry to provide assurances that all bands are still on table as part of evaluation (CD March 30 p1). Meanwhile, MMDS and ITFS users generally greeted reports with enthusiasm. “Our feeling is that overall the technical and other evidence really is pointing to the DoD spectrum as an area for a solution,” Sprint spokesman said. Separately, Sprint spokesman took exception to emergency petition filed by Verizon Wireless earlier last week that asked FCC to defer decisions on pending applications for 2- way MMDS operations until 3G uncertainty was cleared up. “That is nothing more than a smokescreen for them trying to shut out competition for their DSL service,” he said.

Meanwhile, 38 education organizations wrote to Education Secy. Rod Paige Fri., seeking to enlist his help “in preventing the loss of a precious resource.” (Educators wrote separate letter to Commerce Secy. Evans making case for spectrum remaining untouched). To Paige, group wrote: “The cellular industry’s development of the new third generation of wireless services must not come at the expense of our students, teachers and communities.” Groups described ITFS spectrum uses in classrooms and for distance learning programs, saying President Bush had urged schools to use technology to improve academic achievement. “Maintaining the ITFS spectrum for educators maintains this critical national goal,” groups wrote.