ICO, CTIA DIFFER ON ‘GATING’ CRITERIA FOR MSS TERRESTRIAL USE

New ICO, however, is opposing requirement for dual-mode devices, saying they would force rural users to pay more than urban subscribers, who have access to more network options. Numerous sources said FCC was aiming to move decision on circulation by end of year, although it wasn’t clear whether it would meet that target (CD Dec 18 p6).

ICO said Mon. it expected customers to purchase devices with dual capabilities, but “decision to do so should be driven by market forces.” Company also said ATC devices could be required to work with components that could access satellite platforms, but that components should be separate. “Any additional requirements affect the value of the business,” said Mobile Satellite Ventures VP Lon Levin. Current technology for dual-mode devices, ICO said, can produce handsets “almost the size of a house brick” with price of $895-$1,495. To attract enough ATC customers, MSS providers need to offer devices with competitive pricing and of comparable size and battery life, company said. Life span of satellite devices is minimum of 3 times longer than that of terrestrial devices, making replacement of ATC devices costly if they're part of dual-mode phone.

FCC regulation mandating sale of dual-mode, satellite- ATC devices would make service inefficient for manufacturers and some consumers, ICO said. However, company “continues to support the Commission’s initial ‘gating’ proposals for restricting ATC as an ancillary service,” it said. “MSV believes that it’s appropriate to focus on satellite systems if the issue is whether these are real satellite systems,” MSV Vp Lon Levin said.

Besides MSS request for ATC authority, teed up at FCC are other related items that address MSS spectrum: (1) CTIA request that part of MSS spectrum at 2 GHz be reallocated to advanced wireless services such as 3G. Commission’s response to that request is expected to include not just 14 MHz of MSS reserve spectrum but spectrum that MSS licensees that missed their milestones would be returning to agency, several sources said. (2) Milestone order addressing whether MSS licensees have met milestones. If licensees have failed to meet benchmarks and Commission reclaims any of that spectrum, analysts have estimated that could result in 25 to 30 MHz of additional spectrum that wireless carriers would have available. (3) Decisions on 3G-related relocations as part of band-clearing options for advanced wireless services, including reallocation of 2150-2162 MHz now occupied by Multipoint Distribution Service (MDS) operators.

Several sources who have been following proceeding closely said it wasn’t clear whether Commission would be able to move on all or some of those decisions by year-end or whether parts would be pushed back to Jan. Further complicating factor, several lobbyists said, is how those decisions will take into account part of 2 GHz MSS spectrum that’s part of proposed 800 MHz reconfiguration plan backed by Nextel and others. Several sources said one common expectation was that FCC would grant ATC to MSS operators, but questions remained as to how that would be defined and what limits would be set.

Gating criteria that CTIA sought if ancillary terrestrial authority were allowed by FCC included: (1) Fulfillment by MSS licensee of all its milestones, full, nationwide deployment of satellite component of MSS system, “actual service offering throughout the United States.” (2) Use of assigned MSS frequencies for ATC services. That would mean that bandwidth used for ATC should be within primary selected assignment of licensee, which is pair of 3.5 MHz bands that make up that assignment. (3) Set-aside of limited bandwidth for ATC so enough spectrum was left to meet satellite traffic needs of system. “A reasonable criterion would be that the capacity in any satellite antenna beam is never reduced by more than 20% from what it would be in the absence of an ancillary terrestrial component,” CTIA said. Another possibility is to limit min. of use on ATC to 20% of min. used on satellite service. (4) Barring of ATC-only subscriptions. That would mean that ancillary terrestrial service would be allowed only via multimode handset that could access both terrestrial and satellite systems. Handset would be required under that approach to look first to satellite and revert to terrestrial network only if it couldn’t see satellite. Contradicting what ICO is proposing, CTIA said: “Allowing MSS licensees the ability to provide ATC using a terrestrial-only phone would highlight that ATC is intended as a stand-alone terrestrial service, not as an ancillary offering.” Point of terrestrial component should be to augment reach of offering, not create stand-alone terrestrial service similar to commercial mobile radio service, group argued.

CTIA argued in Dec. 17 filing that services and marketing packages offered to users when accessing ATC should be same as those offered through satellite component. “The ancillary terrestrial component should not provide capability upgrades or cost savings for only the ATC customers of MSS licensees,” CTIA said. Group also sought restrictions to ensure that ATC didn’t cause interference to users in adjacent bands, particularly if FCC reallocated part of 2 GHz band to non-MSS services.

New ICO can roll out terrestrial service more easily than other MSS licensees can because it can rely on expertise of wireless carrier Nextel, which is also backed by Craig McCaw, industry source said. “For most MSS providers, the terrestrial network is the hard part, both logistically and financially,” source said, and “for ICO, it’s the opposite.” Another source said further complicating factor in MSS decisions now facing Commission was linkage to 800 MHz reconfiguration plan floated by Nextel, public safety groups and some private wireless interests. To alleviate interference to public safety operators at 800 MHz, proposal would reconfigure 700, 800 and 900 MHz bands. In return for spectrum it was giving up elsewhere, Nextel would gain replacement spectrum from 5 MHz of unlicensed PCS spectrum at 1.9 MHz and another 5 MHz of reserve MSS spectrum.

Meanwhile, FCC was said to also be nearing decision on relocation spectrum for MDS operators that would move to make way for advanced wireless services. Nextel this fall opposed plan by MDS operators to move from 2150-2162 MHz by relocating to 1910-1916 and 1990-1996 MHz to clear way for FCC to auction 1710-1755 MHz and 2110-2155 MHz for advanced wireless services. Nextel has told FCC that would conflict with its proposal that agency redesignate 1910-1915/1990-1995 MHz in exchange for other spectrum it would relinquish under 800 MHz plan. One possibility is that Commission would give relocating MDS operators 10 MHz in spectrum at 2 GHz above 2165 MHz.

Several sources said it wasn’t clear whether FCC would be able simultaneously to make final decisions on pending requests for ATC authority and reallocation of MSS band to advanced wireless services. “The ATC item is number one on the list,” source said, and Commission also would like to move on that decision “hand in hand” with milestone decisions. Agency is expected to take “a very, very tough stance” on whether licensees have met milestones, source said. Draft on ATC decision is said to be circulating on 8th floor (CD Dec 18 p6).