FCC STUDIES FLEXIBLE ALLOCATION FOR MMDS TO BE USED FOR MOBILE

Flexible use of MMDS band has come up in past. Notice of proposed rulemaking approved by FCC on 3G last Dec. had explored possibility of introducing new mobile and fixed services in bands now used for cellular, broadband PCS and specialized mobile radio, as well as block of spectrum such as 1755-1850 MHz occupied by military users and 2500-2690 MHz licensed to MMDS and ITFS licensees. Flexible spectrum allocation has been of increasing interest at Commission, particularly among commissioners reluctant to dictate market decisions such as what spectrum should be used for, industry source said. Several recent spectrum proceedings also have allowed flexible use, including decisions on 700 MHz and LMDS. Earlier this month, FCC adopted proposal to explore possibility of using mobile satellite service (MSS) spectrum for terrestrial wireless operations, either by MSS licensees or others.

Still, several industry sources said extent to which item on MMDS and ITFS appeared to be poised to allow both fixed and mobile wireless use was surprise because they were only expecting these operations would be taken off table for 3G relocation. Flexibility language under consideration also came as surprise, several sources said, because MMDS licensees such as Sprint and WorldCom hadn’t been pushing for change and most of wireless industry had sought 1.7 GHz used by Pentagon, not 2.5 GHz, for 3G services.

Flexible use language prompted flurry of recent ex parte filings on concerns about extent to which it could undermine obtaining additional 3G spectrum. Concern, industry sources said, is that putting 190 MHz of MMDS spectrum on table for possible mobile use would give Dept. of Defense negotiators leverage in fending off any efforts to relocate military users for 3G. “Premature decisions or actions regarding any particular piece of spectrum under consideration will have a negative impact on the rest of the process and the ability to fully evaluate all available options,” Motorola and Nokia wrote in ex parte submission filed with FCC Mon. Motorola said it supported flexible spectrum use as “guiding principle” but “merely providing flexibility to deploy mobile services in a heavily encumbered frequency band is not sufficient to satisfy the spectrum requirements for these services.” Potential difficulties with developing 2.5 GHz for mobile use include current technical rules that “are not suitable for mobile services.” Motorola said FCC shouldn’t “substitute a general desire for regulations that permit flexible use of spectrum for a meaningful analysis of the actual ability to do so.”

CTIA in ex parte filing Mon. said it would be “premature for the Commission to make an allocation decision now regarding mobile use in the 2500-2690 MHz band before addressing related issues in the advanced services [3G] rulemaking.” Concerns CTIA cited included: (1) While mobile wireless industry generally backed flexible use allocation for terrestrial spectrum, “the record generally does not support flexibility for the MDS/ITFS band at this time.” (2) Mobile allocation in MMDS spectrum raised interference issues, with licensees unable to operate both MDS/ITFS system and mobile wireless system in same geographic area. (3) “Permitting flexibility to provide entirely new services after spectrum is auctioned raises significant issues that should be more fully addressed in a rulemaking focused on the issue.” Group said MDS spectrum was auctioned as fixed service, with prospective bidders not having “fair chance” to bid on spectrum for mobile services. Permitting commercial mobile radio service in that band, instead of auctioning spectrum, “will result in the loss of substantial revenue for the U.S. Treasury.” (4) Flexible use allocation wouldn’t alleviate spectrum shortage, in part because MMDS operators had contended they needed all that spectrum for fixed wireless. There is no assurance, CTIA said, that they will use band for mobile wireless or sell it to others.

“By far the critical issue for WorldCom is taking 2.5 GHz off the table” for 3G policy considerations, WorldCom Vp-Wireless Regulatory Affairs Robert Koppel said. Wireless Communications Assn. Pres. Andrew Kreig said, “Our priority has always been simply to take the spectrum off the table for reallocation so that the fixed wireless broadband service could be deployed. We have never asked for flexible use. Our only focus is on removing the cloud over this MMDS and ITFS spectrum.”

One industry source said that to carry out flexibility reallocation for MMDS, Commission would have to issue service rules to put decision into effect, particularly to address interference issues. One difficulty in way of existing MMDS licensees’ using spectrum for mobile services is that operators have spent billions to put fixed wireless infrastructure in place. MMDS and ITFS licenses also have 35-mile protected service area, and licensees using systems for 2-way operations have had to work out consent agreements with adjacent operators that show there’s no interference in 100-mile radius of operation. Complicated nature of existing MMDS licenses for fixed wireless demonstrates how difficult it would be to encourage mobile use, another source said. “It’s a disaster for our effort,” wireless industry source said of mobile segment’s effort to obtain additional 3G spectrum.