SPECTRUM FLEXIBILITY IS BUZZWORD AT CTIA SHOW, TO MIXED REVIEWS

“Beyond additional allocations, we will also be moving to revise our rules to foster a stronger secondary market in spectrum resources so that spectrum can change hands more readily and evolve to their highest value uses,” FCC Comr. Abernathy said in speech earlier in week. “Our current antiquated approach is more restrictive than necessary to comply with the statute and I look forward to getting an order out that will facilitate spectrum leasing as well as license transferability.”

“I actually think some degree of flexibility is a critical part of any policy or philosophy that has a market component to it,” FCC Chmn. Powell said in Q&A Tues. with CTIA Pres. Tom Wheeler. “Flexibility can be seen as goring oxes at times but it can also be seen as very beneficial.” He said “greatest example” of flexibility at FCC might have been decision to allow cellular to develop into PCS: “It’s a principle that we're committed to in all its derivations but it doesn’t predict an outcome.” Wheeler had asked whether “one should have some trepidation” that carriers were spending significant sums on spectrum at auction while additional spectrum for competitive services was becoming available at no additional capital costs.

Fontes sounded note of caution when talking about flexible spectrum use, saying it could mean different things to different people. Without naming company, he cited New ICO petition on flexible MSS allocation now before Commission. “This is spectrum that needs to be reallocated and auctioned off. It’s prime spectrum that’s in the roughly 2.1 GHz range and it would have substantial value,” he said in panel discussion. “But this company would rather have the flexibility to be able to provide the terrestrial service” in requested move that would increase value of spectrum at no additional cost, he said.

“While Brian might say too much flexibility might hurt, I would say please make it flexible,” said Michael Kennedy, Motorola corporate vp-dir. global govt. relations. Speaking on same panel, he bemoaned lack of overarching spectrum management plan in U.S. that cut across wide array of govt. agencies that shared responsibility. “I would argue that the U.S. has lost its leadership in the wireless arena,” Kennedy said, saying U.S. represented 15% of global handset market. He said 70% of world population had access to 1.7 GHz band, which is used largely in U.S. by military. Govt. took much of that spectrum off table for 3G consideration after Sept. 11 attacks. “We can’t even get it on the table to talk about it,” Kennedy said. “That’s how bad the process is in the United States.”

“I do think that when we talk about flexibility sometimes we make it seem like a magic bullet or a silver bullet,” FCC Wireless Bureau Chief Thomas Sugrue said. “You do have to have interference specified clearly.” Asked by panel moderator Dale Hatfield, former chief, FCC Office of Engineering & Technology, what areas of spectrum policy had been successful, Sugrue cited general policy of introducing more flexibility into new allocations.

Flexibility has gone from “being a sexy buzzword to being almost a word of criticism during the conference,” said Lisa Gaisford, chief of staff in FCC’s Office of Engineering & Technology, on Tues. panel. “It doesn’t mean the FCC is going to abdicate its [regulatory] responsibilities.” Kathleen Ham, deputy chief of FCC’s Wireless Bureau, also sounded note of caution: “At what point does it look like it’s a potential means to keep new competition out and new technology out? And that’s something we are going to have to grapple with.” She cited point that Sugrue made here this week that FCC had 2 potential paths for flexibility, one of which was to make spectrum reallocations that had more flexible use and other was to give existing incumbents authorization to offer new services. “The Commission has done it different ways at different times. That is sort of what we are grappling with now -- what the rules of the road are,” Ham said.

Some of policy challenges in adding flexibility to FCC spectrum policy are emerging in secondary markets proceeding, which is examining ways licensees could lease spectrum to 3rd parties more easily. David Furth, senior legal adviser in Wireless Bureau, said Commission hoped to have secondary markets item out in 2nd quarter. One issue is that spectrum leasing not be end run around original licensing rules created for primary use of band, he said: “It’s causing us to think a lot about first principles of spectrum management.” -- Mary Greczyn

CTIA Wireless 2002 Notebook…

FCC expects to act “soon” on VoiceStream Wireless’s request for waiver to provide wireless priority access service (PAS), said Julius Knapp, deputy chief of Office of Engineering & Technology, on Tues. panel. VoiceStream petitioned Commission for partial waiver of its PAS requirements until equipment it needs becomes available later this year. National Communications System (NCS) has been nearing an agreement with VoiceStream to provide wireless PAS for national security and emergency personnel, initially in N.Y. and Washington. Asked by CTIA Vp-Regulatory Policy Diane Cornell how issues such as 5 priorities listed in FCC’s PAS rules would be balanced with need for E911 calls to go through, Knapp said both carriers and Commission were working on such issues now. FCC adopted voluntary PAS rules in 2000 but they received renewed attention after Sept. 11 terrorist attacks. “For the Commission’s part, we are looking anew at the rules adopted last year. I expect we will have to do some balancing of needs and what is reasonable to be accomplished by the network,” Knapp said. Asked whether FCC was considering opening rulemaking on changes, Knapp said: “At this point the jury is still out. All we're doing is kind of thinking it through and talking to people.”

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FCC is conducting “serious examination” of information it has received from GSM carriers that they won’t be able to meet all benchmark dates of E911 waiver requests granted by Commission, Deputy Wireless Bureau Chief James Schlichting said Tues. Last fall, FCC adopted E911 compliance plans for all nationwide wireless carriers with exception of VoiceStream, which had received waiver earlier. “Obviously, from a Commission perspective it’s a serious matter that they are subject to the plans that are on the table and they have come back to us and said they can’t meet it,” Schlichting said. New plans proposed by GSM operators have rollout dates very similar to those granted by Commission to other carriers, “but again they're not consistent with the specific plans” already approved by FCC, he said. In other areas, Verizon Wireless and Sprint PCS have started to sell GPS- capable handsets for their CDMA networks. In Chicago, St. Louis and Houston, Verizon has installed network-based technology and has been working with public safety answering points (PSAPs) that have submitted Phase 2 E911 requests, he said. “Verizon has been working hard with PSAPs on a mutually acceptable solution and we expect them to be deployed in the relatively near future.” Schlichting also said Sprint had launched Assisted-GPS system in R.I. Cambridge Positioning Systems CEO Chris Wade said equivalent of what carriers were being asked to implement for E911 “from a technology point of view is like saying to Henry Ford, ‘we want you to make a motor car that goes 70 miles per hour and permits you 140 miles per gallon when the very first product comes out.'” Wade stressed that technology was “brand new… It is complex, it is difficult, but we are getting there.”