DoD STILL TAKES GRIM VIEW OF SPECTRUM SHARING, RELOCATION FOR 3G

DoD message appeared to be largely unchanged from stiff challenges involving band-sharing between Pentagon systems and commercial wireless carriers that Nutwell outlined in early April when NTIA and FCC unveiled final reports on 3G alternatives (CD April 2 p1). Vacating band could be feasible under certain circumstances, with caveats including comparable replacement spectrum and “timely reimbursement,” he said. Under executive memorandum signed by then Pres. Clinton in Oct., FCC must make decision next month on spectrum allocation for advanced wireless services, although CTIA recently told President Bush better course might be to take more time to reach conclusions. “We don’t feel that sharing of the full band or by implication a significant chunk of the band is really going to be practical,” Nutwell said, detailing “keep-out zones” needed to protect incumbent military systems from interference. On band sharing, he said, concern is “if we got into that game, even if it looked upfront like it might be feasible, if it turned out to be worse than we thought, we wouldn’t have much clout to protect our interests with all the pressure there would be from industry to be able to use the band when they thought they could.”

Nutwell emphasized future military spectrum requirements, issue he said wasn’t covered in-depth in recent FCC and NTIA 3G reports. Recent Pentagon study showed that its mobility communications requirements were expected to grow up to 92% through 2005 and spectrum needs for point-to-point systems by 62% through 2007. “Given that when you go to a new band you are the newcomer on the block, you may not have the same regulatory status,” he said. As result, DoD’s flexibility to meet those military spectrum needs might be reduced, he said. “This is an important factor in our thinking that there are some significant risks to DoD from sharing or moving out of these bands,” said Nutwell, who is deputy asst. Defense Secy. for command, control, communications and space systems.

Other bands should be considered first before heavily entrenched incumbents such as DoD are moved, Nutwell said. In short term, he estimated there were “well over 100 MHz” that appeared to be available for 3G, including 1710-1755 MHz, already reallocated from govt. to nongovt. users under 1993 Balanced Budget Act. Spectrum in 2100 MHz and 2160 MHz bands “also seems to be available and are under consideration for 3G.” He showed slide of spectrum options that also included upper and lower channels of 700 MHz, now occupied by analog TV broadcasters in advance of transition to DTV, 1910-1930 MHz, 1850-1910 MHz. While 100 MHz would be available in short term, up to 240 MHz would be available longer term if TV incumbents were moved and other bands became available, he said.

Without elaborating, Nutwell cited “talk on the Hill of weakening or doing away with” protections of fiscal 2000 National Defense Authorization Act. That requires that certain conditions be met before DoD users are relocated from spectrum, including making available as alternative replacement bands with “comparable technical characteristics.” Those protections are proper for DoD, he said, declining to comment after session on rumors. “The worst case for us would be to really give up all or part of this band without proper compensation with spectrum or funding. We definitely would lose significant military capability in that case,” he said. “I'm sure DoD would have to go to the mat to guard against that. We think the legislation should stay in place.” Unspecified rumors cited by Nutwell come at time that wireless industry, led by CTIA, has been laying groundwork for what officials cite “as win-win” solution in which industry would have access to DoD-occupied spectrum and military users would be compensated for relocation and would also be beneficiaries of development of commercial wireless systems.

Other panelists acknowledged there has been speculation that FCC won’t hit July target for making spectrum allocation decision. “We are still working toward that date,” said Bill Hatch, associate administrator of NTIA’s Office of Spectrum Management. Bryan Tramont, legal adviser to FCC Comr. Abernathy, echoed Commission’s interest in still moving toward that date. Tramont also cited recent CTIA filing at FCC asking agency to reallocate mobile satellite services spectrum for “more efficient uses” such as 3G. “That’s something we are going to look at,” he said. Aside from 2.5 GHz spectrum occupied by MMDS and ITFS licensees, Tramont said Commission was “going to look at other alternatives in commercial bands.”

Meanwhile, CTIA made pitch to FCC Chmn. Powell late Tues. to free up DoD-occupied spectrum for commercial users. In letter, CTIA Pres. Thomas Wheeler asked Powell to delay final decision in allocation proceeding beyond target deadline of July to give Administration “the time necessary to complete its analysis in the context of a broader spectrum management policy.” He said FCC review must ensure: (1) Full protection of operational capability of federal govt. users. (2) Full reimbursement of costs of migrating to spectrum “more consistent with international users.” Wheeler wrote that “the auction proceeds would be more than sufficient to pay the DoD’s costs to replace and modernize its equipment in order to ensure our military has the up-to-date and sophisticated communications systems it deserves.” He told Powell that industry had spent $78 billion in wireless network investments in last 20 years and would spend billions more, even excluding auction costs, to deploy advanced mobile services.