FCC APPROVES PROPOSAL AND ALLOCATION ORDER OF 90 MHZ FOR 3G

Commission stressed allocation for 3G was flexible by allowing existing or new operators to offer wireless voice and data services or to “support the development of entirely new applications that are distinct from existing wireless offerings.” Bands covered under proposed service rules are 1710-1755 MHz that had been reallocated from govt. to nongovt. users and 2110-2155 MHz, which includes 5 MHz block of MDS users and fixed point-point-microwave licensees at 2110-2150 MHz. FCC is eyeing 2004 auction for that spectrum, with final order on service rules expected in first half of next year, officials said.

Proposed service rules, approved unanimously at its agenda meeting, would afford “future licensees the maximum possible flexibility in deciding how to put this resource into service for the public benefit,” FCC Chmn. Powell said. He called Commission’s action “a major step” in creating amenable environment for introducing new products and services. “Access to new spectrum is not a cure for today’s financially ailing wireless industry, but it is a key precondition to the long-term health of the industry,” he said. Comr. Martin said decisions also marked “an important move toward a more predictable spectrum policy at the FCC… In the past, spectrum decisions have often been made ad hoc, leading to short bursts of spectrum being made available over a period of several years.”

Bush Administration in July released 3G viability assessment under which Defense Dept. agreed to clear most of 1710-1755 MHz as part of overall 90 MHz of spectrum that would be cleared for advanced wireless services. Included in total was 45 MHz of 2110-2170 MHz, now occupied by nongovt. users. That spectrum for 3G is less than 120 MHz that NTIA and other agencies had kept in play last year, after taking out of consideration 1770-1850 MHz, which is occupied by DoD, following Sept. 11 attacks.

Proposed service rules would provide for Part 27 licensing of those bands, which FCC said would provide flexibility for basic licensing requirements and set out technical parameters to prevent interference.

“The 3G train is definitely on track,” NTIA Dir. Nancy Victory told us in response to FCC’s action. In comment period in proceeding, several wireless industry representatives had praised making 90 MHz available while cautioning that ultimately more spectrum would need to be made available for 3G. Asked about future additional allocations, Victory said every spectrum stakeholder always was looking at how to find capacity for new technologies. “So we understand that we're not done and I don’t think NTIA and FCC will ever be done on behalf of any stakeholders,” she said. Asked whether new spectrum policy concepts floated at FCC meeting could be applied to make future 3G spectrum more available, she said ideas of task force could be examined in that context. “One of the things that the task force emphasized today is that we do need to take advantage of marketplace efficiencies and forces and we also need to advantage of the benefits of new technology,” she said.

Allocation of 90 MHz increases by 1/3 total spectrum allocation that can be used to support advanced wireless services, FCC Comr. Abernathy said. “While we recognize that we're also going to need to identify additional spectrum for advanced services in the future, I think today’s item represents a significant step that will help to deliver to consumers innovative new services,” she said. “The demand for spectrum is ‘you can never have enough.'”

“The FCC appears to be moving at a swift pace to make this spectrum available for advanced wireless services,” AT&T Wireless Vp Federal Affairs Doug Brandon said.

One closely watched aspect of decision in recent weeks was how exactly FCC would slice spectrum at 2110-2170 MHz to come up with 45 MHz allocation. Potential results of how relocation spectrum is chosen for MDS includes implications for 800 MHz reconfiguration proposal floated by Nextel and others and pending ancillary terrestrial component request for mobile satellite service spectrum sought by New ICO. CTIA has urged FCC to reallocate that spectrum and make it available to other services such as 3G.

MDS operators, including BellSouth, Sprint and WorldCom, had told the FCC that if 2150-2160 MHz were reallocated for 3G, those licenses in MDS Ch. 1 and 2/2A could be moved to 1910-1916 MHz and 1990-1996 MHz. In first case, 1910-1916 MHz has been allocated for unlicensed PCS use and 6 MHz at 1990-1996 MHz, if reallocated for MDS, could be taken from 7 MHz of spectrum in 1990-2025 MHz MSS uplink band that hasn’t yet been licensed for MSS. Nextel had opposed that MDS plan, arguing it would conflict with its 800 MHz reconfiguration proposal for mitigating interference to public safety operators. That plan would redesignate 1910-1915/1990-1995 MHz to Nextel in exchange for 700, 800 and 900 MHz spectrum that carrier would return to agency for reassignment to public safety and private wireless operators. ICO Global Communications also balked at MDS compromise, saying allocation of 1990-1996 MHz for MDS would leave it with inadequate spectrum in MSS uplink band.

Competing requests by New ICO on ancillary terrestrial use of MSS spectrum and CTIA that spectrum be made available for 3G uses are to be addressed in first half of next year, Office of Engineering & Technology Chief Edmond Thomas told reporters. Asked about possibility that more spectrum can be made available for 3G above 2155 MHz, Thomas said: “On an ongoing basis, we're looking for further spectrum that could be available for advanced wireless services.” He declined to speculate on specific timelines, but said Commission would make decisions as needed, “but not necessarily in that band.” Subject to Commission decision, order on proposed service rules could be issued around mid-2003, with auction in 2004, FCC Wireless Bureau Chief Thomas Sugrue said.

Full report will offer some ideas that ultimately could require legislative changes and those will be spelled out in final report, said task force co-dir. Peter Tenhula in news conference, and gives “a few” concrete examples of such changes. When full report is issued next week, task force will release more detailed documents from individual working groups, he said. Four working groups were divided by topic areas of unlicensed and experimental devices, spectrum rights and responsibilities, interference protection, spectrum efficiency. Next steps include seeking public input on findings and recommendations of task force and examining opportunities for implementation and prioritizing various proposals, Tenhula said.

Task Force Dir. Paul Kolodzy and Office of Engineering & Technology Chief Edmond Thomas stressed that types of technologies contemplated in report, such as filling in underutilized spectrum “white space,” were mixture of readily available systems and those that still were in lab development. Idea of focusing more on “time dimension” of spectrum centers on using spectrum “when it’s lying idle or fallow,” Kolodzy told reporters. “One of the problems associated with that are obviously some technical issues that have to be addressed.” Work being done now in research labs would fill in those spectrum holes but it also is driving factor behind cordless phone technology in use in unlicensed spectrum that automatically jumps to one of 10 channels when it senses interference, Kolodzy said.