The Wireless Communications Assn. (WCA) petitioned the FCC for re...

urged the FCC to reverse its decision that immediately froze the filing of applications for new or modified ITFS and MDS facilities. The FCC opened what it called a “comprehensive” examination of MDS and ITFS rules to promote competition and investment in wireless broadband services. WCA asked the FCC to limit the applications freeze so it would ban only ITFS stations located outside of existing protected service areas that essentially would be seeking licenses for ITFS “white space” or unassigned spectrum. “WCA is not questioning the Commission’s authority to suspend the filing of applications for new or modified facilities,” the petition said. “However, it does question the wisdom of that action under the circumstances present here.” The group argued that although the FCC’s review of the ITFS and MDS rules was designed to encourage competition and investment, a freeze on applications for new or modified stations would be “contrary to those objectives.” WCA said the scope of the freeze wasn’t clear because part of the decision talked only about freezing ITFS applications but elsewhere it referred to MDS stations. WCA said it agreed applications to serve unassigned ITFS spectrum shouldn’t be accepted until the Commission had finalized rules for auctioning unassigned ITFS spectrum. “Despite the well-documented difficulties associated with licensing MDS/ITFS facilities that can be used to deploy wireless broadband services, a small but not insignificant number of system operators have chosen to undertake the costly and unnecessarily burdensome licensing process rather than await new rules,” WCA said. “The Commission’s impositions of a freeze threatens to leave a wide variety of interests in the proverbial lurch,” WCA said. It said unless the freeze was lifted: (1) Licensees wouldn’t be able to deploy new wireless broadband wireless systems. WCA said 24 wireless broadband systems had been under development for a 2003 rollout, but couldn’t emerge because of the application freeze. (2) Capital expenditures in the wireless broadband sector would be put on hold as investors reacted to the uncertainty of the freeze. (3) Pending acquisitions of MDS licenses and leases of ITFS excess capacity would be put off until new entrants could open facilities. “WCA is aware of at least 2 transactions ready to close within the next 2 weeks where the acquiring party is threatening not to close because of the freeze.” (4) Operators of existing wireless broadband systems would be unable to add cells or conduct upgrades at existing cells to expand capacity. “As a result, operators will be unable to serve consumers for no other reason other than a lack of network capacity,” WCA said.