NORTHPOINT FACES WIRELESS OPPOSITION IN FIGHT FOR DBS SPECTRUM
CTIA and AT&T Wireless have joined Northpoint-DBS spectrum debate. Responding to reports that terrestrial start-up Northpoint was gaining ground in efforts to tack on amendment to Senate appropriations bill that would prohibit FCC from auctioning satellite spectrum in 12.2-12.7 GHz band, CTIA and DBS industry have stepped up lobbying efforts. CTIA sent letter opposing move Mon. to Senate and House leaders, including Senate Appropriations Chmn. Byrd (D-W.Va), ranking Republican Sen. Stevens (Alaska), House Appropriations Chmn. Young (R-Alaska) and ranking Democrat Rep. Obey (Wis). Meanwhile, AT&T, in ex parte at Commission Oct. 11, also opposed effort by Northpoint to gain “free nationwide license” and spectrum allocation.
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Northpoint hasn’t made public statements about lobbying efforts involving bill, but supporters have been holding discussions with members of Senate Appropriations Committee on adding rider to 2002 fiscal year spending bill, industry sources said. FCC “shall not have the authority to license or otherwise assign spectrum to applicants to provide terrestrial services by competitive bidding if the Commission has licensed or intends to license that spectrum to satellite services without competitive bidding,” draft language says, according to sources. That would mean spectrum sought by Northpoint couldn’t be auctioned because DBS operators, including DirecTV and EchoStar, were licensed auction-free. Northpoint believes it should be exempt from auction as innovator of technology. Company sources have said privately that auction would substantially hurt its chances to roll out service because of economic issues.
CTIA said proposed legislation would “give away valuable” spectrum to certain private entities without recovering value of resource for taxpayers: “Spectrum is a scarce resource. Demand for spectrum continues to grow. In this environment, spectrum allocations for wireless service should be determined through the auction process.” Proposed legislation could cost taxpayers billions of dollars, CTIA said. Letter also said FCC would be unable to recoup spectrum if companies such as Northpoint were unable to deliver services as promised.
AT&T Wireless said Commission must hold auction if it reallocated satellite bands for terrestrial use. “There is absolutely no policy or legal basis to permit any party to obtain or use satellite spectrum for terrestrial services for free.” AT&T rejected Northpoint argument on mutual exclusivity. Participation in Mitre testing also isn’t ground for barring auction, AT&T said. Commission also should reject Northpoint request for pioneer’s preference as “reward for efforts in arguing for feasibility of service” because Congress had abolished practice. Best use of spectrum would be distribution through competitive bidding rather than granting “enormous windfalls” to companies that seek to “exploit dubious statutory and regulatory loopholes.”