ADMINISTRATION FREES 90 MHZ FOR 3G WIRELESS SERVICES

“While the plan requires some changes to certain of our systems, the Defense Department concludes that military capabilities will not be degraded because DoD is gaining access to comparable spectrum, where necessary, receiving cost reimbursement and being afforded time to adjust our operations,” said Steven Price, deputy asst. defense secy. for spectrum, space, sensors and communications, command & control. He stressed DoD’s spectrum use was increasing and Pentagon didn’t believe its future needs could be met “without access to additional spectrum allocations.”

One key to plan, interagency effort that included FCC, was DoD agreement to clear 14 of 16 protected federal sites at 1710-1755 MHz. In 1993 Omnibus Budget Reconciliation Act, govt. identified 1710-1755 MHz to transfer to FCC on mixed use basis, including maintenance of those 16 DoD sites, which are used for training and testing. Certain federal fixed microwave links also were protected. Under 3G plan, which is subject to reimbursement funds’ being made available, DoD would: (1) Relocate airborne telemetry and video operations at 1710-1755 MHz by Dec. 2008. Alternative replacement spectrum includes 1755-1850 MHz, which is govt. occupied, 2360-2385 MHz, which has other airborne operations or 2385- 2395 MHz band “as a result of FCC rulemaking for government mobile use.” Band of 2385-2390 MHz already has been reallocated from govt. to nongovt. users. FCC approved service rules this year that would license fixed and mobile service on co-primary basis in this spectrum. (2) Be allowed, subject to FCC rulemaking, to have ground systems remain in 1710-1755 MHz on secondary, coordinated basis at all sites but on primary basis at 2 relatively remote locations of Cherry Point, N.C., and Yuma, Ariz. DoD ground systems that can’t operate without creating interference to commercial users in band would operate at 1755-1850 MHz or on noninterference basis at 1350-2690 MHz. Band of 1755-1850 MHz had been wireless industry’s first choice last fall for 3G spectrum before 1770-1850 MHz was taken out of running for advanced services in light of new national security demands.

(3) Allow FCC, in addressing future DoD spectrum requirements and helping absorb certain operations that were moving from 1710-1755 MHz, Sept. 2004 to agree to permit Pentagon to use 2025-2110 MHz on co-equal primary basis with incumbents, which include electronic newsgathering operations by broadcasters, source said. At 1990-2110 MHz, govt. satellite services are already co-primary in band but with understanding that they won’t cause interference to broadcast auxiliary services. Provision is designed to address needs of DoD ground stations at certain sites that support military space operations. (4) Precision guided munitions (PGM) operations could continue to operate at 1710-1720 MHz on primary basis until Dec. 31, 2008, or until current inventory is exhausted, whichever is earlier. DoD’s price said new generation of PGM equipment could be retuned to operate elsewhere. (5) Relocate other military systems to 1755-1850 MHz, including unmanned ground robotic systems. Plan calls for federal users to relocate or modify operations no later than Dec. 2008. Contingencies for that to happen include reimbursement funding. Federal agencies with protected spectrum that agree to move would be relocated 2 years after availability of reimbursed funds.

“The bottom line is that this postpones full-blown 3G and makes it even more expensive,” said Rudy Baca, analyst with Precursor Group. “Essentially, they have been compromising down the amount of spectrum needed,” he said, saying earlier govt. evaluations had estimated 200 MHz eventually would be needed for 3G. New report, by contrast, makes two 45 MHz blocks available and they aren’t contiguous, he said. “They are getting not even half a loaf here,” Baca said. “What this will do is allow deployment of 2.5G services such as 1xRTT.”

Now that relocation spectrum has been identified, DoD’s Price said Pentagon was putting together team to assess relocation costs, with estimates due “sometime before the auction.” NTIA Deputy Dir. Michael Gallagher said non-DoD related costs had been put at $410 million and cost for DoD fixed links at under $100 million. Cost estimates remain to be filled in for aeronautical and terrestrial applications, he said.

Agreement on 16 Sites

Sixteen protected DoD sites have been used for operations that include airborne video and telemetry, airborne testing and training, tactical radio relay and fixed microwave, Price said. They had emerged as particular sticking point in final negotiations, particularly extent to which aeronautical operations in that band couldn’t share spectrum with 3G services. In some cases, such as for airborne video and telemetry, existing users were moving to comparable spectrum, Price said. In other cases, such as tactical radio relay arena, users could stay where they are, he said. In still other scenarios, including for some Army systems, current operations are remaining but with secondary status, he said. Fixed microwave links will move to some newly identified locations.

While 1710-1755 MHz already has been reallocated from govt. to nongovt. users, grandfathered sites within that spectrum would have made it difficult for 3G to co-exist unless agreement had been reached to move those protected federal users, NTIA Dir. Nancy Victory said. Grandfathered operations included 2,000 microwave links and 16 protected sites that contained ground operations for airborne systems, which are in major cities and surrounded by protection zones, she said. “If you superimpose those 2 sites it would be pretty difficult for 3G services to co-exist -- in fact, I would say it would be impossible,” she said. “A lot of the work that was done was figuring out how do we move these systems out.”

“What Congress said was make 90 MHz available, it didn’t say anything about make 90 usable MHz available,” CTIA Pres. Tom Wheeler said. “It did say cleared spectrum.” Group has been urging need of certainty in spectrum planning process, including defined timetable and stability of “not having these fire-drill auctions where everybody runs around and economics take a back seat to rational planning,” Wheeler said. Plan has brought “rationality” to process by explaining what will happen to this spectrum between now and 2008, he said.

Some DoD Spectrum Untouched

Another apparent sticking point during negotiations had been 15 MHz of spectrum at 1755-1770 MHz, which is only part of 1755-1850 MHz left under consideration for 3G after govt. scaled back its evaluation last fall. DoD had raised concerns about its ability to move systems from that sliver of spectrum, in part because some operations used contiguous, higher spectrum and it wouldn’t be easy to isolate parts of systems that operated in that slice. Victory said determination had been made that that 15 MHz “couldn’t be made available within any sort of reasonable time frame to meet industry’s current needs.” That spectrum is off table for commercial 3G uses “for the foreseeable future,” she said. Viability assessment had examined that swathe of spectrum and concluded it would be very difficult to share “given the complex interplay of systems,” Price said. He said DoD had more than 340 permanent assignments plus at least that many temporary assignments in band, he said. Band also has “unique propagation characteristics” useful for military, such as allowing for small antennas and large beamwidths, Price said. Given that military is moving toward “network-centric” operations such as mesh networks, he said, “we are going to need more spectrum, not less.” DoD is comfortable with extent to which plan addresses 16 sites but doesn’t change 1755-1770 MHz, he said.

Draft relocation trust fund legislation that Commerce Dept. sent to Capitol Hill is “a very key component to making sure that any spectrum that’s made available for new services is made available on an expeditious basis, is cleared on an expeditious basis,” Victory said. Idea of relocation trust fund had been included in President Bush’s budget earlier this year. Current law already requires commercial entities to reimburse federal users for costs of relocating from reallocated spectrum. Proposal sent to Congress by Commerce Dept. would change current system of direct payments from commercial entities to federal agencies to central relocation fund financed from auction receipts. “It would also authorize the federal entities to spend the payments without further appropriation,” said transmittal letter from Commerce Dept. Gen. Counsel Theodore Kassinger to Vice President Cheney. Letter said White House Office of Management & Budget was reviewing cost estimate of draft bill.

Under draft, bands of eligible frequencies include: (1) 216-220 MHz, 1432-1435 MHz, 1710-1755 MHz and 2385-2390 MHz, which already have been reallocated from govt. to nongovt. users. (2) Any other band reallocated from federal to nonfederal use after Jan. 1, 2002. Relocation costs, according to draft, include costs of modifying or replacing equipment, including software, training costs or regulation attributable to relocation. NTIA would notify FCC of estimated relocation costs and timelines for relocation 6 months before start of auction of any of covered frequencies.

“This spectrum should provide wireless carriers with sufficient capacity to keep pace with consumer demand for new and innovative services,” FCC Chmn. Powell said. “In the future, as events warrant, the Commission will consider making additional spectrum available for wireless services.”

Price called plan “package deal,” meaning contingencies such as FCC rulemakings would have to be put in place before military users relocated. “If those don’t come out according to the plan, the plan doesn’t happen,” he said. Noting upcoming FCC rulemakings needed to put plan in place, NTIA’s Gallagher said: “The ball moves to their court.” Event that triggers spectrum being made available is fund availability, whether under current rules or proposed legislation, he said. FCC Comr. Martin said viability assessment represented “creative plan” for making “significant” spectrum available for advanced wireless services. Comr. Abernathy said report represented “tremendous amount of new spectrum” for providing new services to consumers. Among tasks that remain for Commission is to assess whether there are “additional commercial bands that we can also make available,” to finalize allocation, create service rules and distribute spectrum, she said.

Spectrum plan received praise from senators. Joint statement by Senate Commerce Committee Chmn. Hollings (D- S.C.) and Communications Subcommittee Chmn. Inouye (D-Hawaii) said they would soon introduce “bipartisan legislation that will supplement these positive steps by addressing a number of spectrum management issues, including the reimbursement of government users when they are required to relocate and their facilities to make spectrum available for commercial purposes.” Commerce Committee spokesman said senators weren’t likely to introduce bill until after Aug. recess. And while legislation could have many elements similar to relocation trust fund bill proposed by NTIA, it won’t be same bill, spokesman said. House Commerce Committee aide said panel’s staff was reviewing NTIA legislation and that Chmn. Tauzin (R-La.) hoped to have relocation trust fund bill enacted before session ended. Senate Commerce Committee ranking Republican McCain (Ariz.) said agreement appeared to strike “fine balance” between commercial and military use. However, his comments focused on war effort and he said military shouldn’t be curtailed from use of spectrum. “Clearly, spectrum plays a very vital role in the war effort,” McCain said. “We must be cognizant that our service men and women must train like they fight, and therefore, we must ensure that the weapon systems they use in training are not hampered by restrictions on the military’s use of certain spectrum frequencies.”