FCC OFFICIAL DEFENDS SPECTRUM TASK FORCE PROPOSALS

CTIA Senior Vp-Govt. Relations Steve Berry still had reservations about interference, however, while continuing to call for more 3G spectrum and preemption from state regulation. Consumers Union Internet & Telecom Legislative Counsel Chris Murray, meanwhile, promoted unlicensed spectrum use while calling broadcasters “the poster child for bad [spectrum] stewardship.”

FCC spends too much time “playing catch-up” with new technologies needing spectrum, Tramont said: Interference temperature standard would help provide “market rules of the road… for new technologies.” Ultra-wideband (UWB) was discussed as one area where FCC was unprepared for new technology, but Berry was skeptical that new model would completely insulate incumbents from interference. In particular, he feared having to recall receivers so they could be modified to meet new standards. Tramont said, however, “we're not going to engage in a wholesale recall of consumer products,” but if FCC adopted new standard, it would be applied in future. Tramont wouldn’t say to what extent FCC might act on task force recommendations or even when notice of inquiry might be launched, although he did predict that “in the next 6 to 12 months there will be a dialog on the key aspects of the task force findings.”

Auction reform also was discussed in task force report and in accompanying report from FCC’s Office of Plans and Policy. OPP staff report proposed 2-sided auction that involves incumbents putting spectrum back in play in exchange for increased flexibility, but Tramont said: “It’s not at all clear we have the authority to do that. We have enough to do where we have authority.” Murray said whether FCC does 2-sided auctions or “a triple back Lindy auction” it needs to reward efficient spectrum users and punish poor users.

For Murray, best candidates for such punishment were broadcasters. “I think there was one really big whopping omission that the task force took a pass on and that was broadcast,” he said. Murray referred to “DTV debacle” by suggesting that “surprising” group of legislators would be proposing spectrum fees to spur DTV transition and surrendering analog spectrum. Tramont said there are public interest benefits to “free over-the-air broadcasting,” but otherwise didn’t challenge Murray’s complaints about broadcast spectrum allocations. “Broadcasting is a tough nut to crack,” Tramont said, but pointed to Powell’s DTV plan, saying it was “making good progress.” Still, Murray said he'd “like to see a signal from the Commission to broadcasters” to be better spectrum stewards and “take back one of those bands.”

Berry said task force’s discussion of secondary markets was “more relevant now than when we had a spectrum cap… Removal of the cap was a big step forward in looking at secondary markets in a different way.” Tramont said appeal of secondary markets for spectrum was that it allows “the market to make judgments” about best use of spectrum, rather than FCC “command and control” structure.

Spectrum debate inevitably involves scarcity, but Murray suggested report missed opportunity to “turn scarcity on its head.” Murray promoted so-called “mesh networks,” where devices such as cell phones or personal digital assistants act not just as receivers but as passive transmitters of signals, significantly reducing cell nodes. “Every time you add a user” you expand network, he said, opposite of traditional wireless networks. Berry was skeptical, however, with model where person’s phone acts as “donkey or backpack” for someone else’s signal. “How do you address personal choice and privacy?” he asked, suggesting model shifted from property right issue with cell tower placement to individual property right conflict. Murray admitted that in mesh network, each user would have to consent to permitting transmissions to pass through one’s device, but that would be offset by lower costs.

Tramont made it clear that any action FCC takes on task force would be done in way that was respectful to incumbent wireless providers. He called them “the intermodal competitor to voice, the intermodal competitor to multichannel video as well,” and said Commission was hopeful that such competition would come in data as well: “We're not going to jeopardize the golden child of competition on the altar of some sort of intellectually pure task force finding.” On data, Tramont pointed to recent industry consensus report on MMDS and ITFS spectrum filed with FCC Nov. 29, saying Commission would “look closely” at that report.

Unlicensed spectrum use by Wi-Fi offers “bandwidth far in excess” of anything allocated for 3G, Murray said. He said he hoped Berry’s member companies would work with Wi-Fi providers rather than view them as competitors. Berry said Wi-Fi “definitely complements” 3G services, but raised some concerns with determining compensation in any partnership relationship. Murray suggested there could be some “cannibalization of revenues” but didn’t elaborate.

Berry said he had seen draft of legislation from Sens. Allen (R-Va.) and Boxer (D-Cal.) that would call for 255 MHz of additional spectrum for Wi-Fi. He said it’s not “clear the industry needs that” much spectrum. Berry, whose group is fighting for more 3G spectrum, said it was one thing to promote more spectrum for Wi-Fi, current hot technology, but “who is the next new kid on the block?” He said it’s very difficult to reallocate spectrum once it’s assigned, but Murray said that didn’t apply with unlicensed spectrum. Tramont took issue with that, however. “Do you know how hard it would be to relocate 2.4 GHz?” he asked. Tramont maintained that once unlicensed service took hold with consumers, it became as entrenched as any service involving assigned licenses.