FCC MAY NOT BE READY TO VOTE OUT ITFS ORDER

Supporters of a delay in the ITFS community met with Chmn. Powell Tues. in what they told us was a very productive meeting. Meanwhile, cellphone pioneer Craig McCaw, who has been investing in spectrum in the ITFS band (see separate story), told the WCA Wed. he has reservations about the proposed order based on what he has heard the Commission would recommend, and he doesn’t favor “shaving” spectrum from other users to be auctioned for advanced services.

McCaw told a packed session at the conference “the mechanism of shaving channel width” to provide spectrum bands that could be sold at auction “is probably not the right answer… We actually don’t favor the plan as constituted. Even though we think the intent by the FCC was honorable and logical, we think it’s probably not the right answer given the job we have to do and the issues before us… We're trying to see if we can’t find a better way to do this.”

Two members of the Commission also expressed concerns about the proposal. Comr. Adelstein told reporters after giving a speech to the WCA that while he wasn’t calling for a delay he has many unanswered questions. Comr. Abernathy expressed similar sentiments. “There’s still a lot of open questions and we don’t have a lot of time to dig through them if we go ahead with the proceeding on June 10,” Adelstein said. “I think there’s a lot of issues that are still deserving of a lot of attention and I think that we shouldn’t handle this prematurely. Given the stakes of the issue we need to really wade through this extremely carefully.”

The order presents several complex issues, Adelstein said. He said “it might be helpful if we had more time and ability to go through these issues in some detail.” Adelstein also said he sees some potential benefits. “There’s real promise for wireless broadband in the ITFS band that’s thrilling. But in taking steps forward… we have to be sure to consider the incumbents in these bands, particularly educators. Any kind of transition has to be a smooth one and has to recognize the valuable services that are being provided today by many of these licensees.”

Abernathy said the FCC has been “inundated” with complaints about the proposal. “These questions are significant enough that I need to go back and talk to folks in the Bureau about what the tradeoffs are,” she said. “I think it still can get done… We've still got some time. If it’s the day before and I'm feeling this way I think it'd be hard to vote it, but as of right now I don’t favor delay.”

Adelstein and Abernathy also told reporters Wed. they haven’t decided whether Nextel should get 1.9 GHz or 2.1 GHz spectrum in the 800 MHz settlement. “800 is still in play,” Abernathy said: “The chairman has been working on this diligently. We need to get this done as quickly as possible. I know he’s committed to doing that… At the same time we want to mitigate the litigation risks. We have to get something in a way that it doesn’t get overturned. Otherwise it’s going to set us back potentially years. I think he’s being properly cautious.” Adelstein said the proposals before the FCC, including one by Nextel and public safety groups and one by CTIA, all “have big risks. The question is not which one is foolproof but which one has the lowest risks.”

Meanwhile, Senate Commerce Chmn. McCain (R-Ariz.) has also weighed in with a letter to Powell criticizing a proposal to eliminate eligibility restrictions on ITFS licensees. McCain said the move could have “a significant detrimental effect” on education. -- Howard Buskirk

WCA Convention Notebook…

FCC Office of Engineering & Technology Chief Edmond Thomas told us Wed. he has gotten some initial positive feedback on a Commission rulemaking that could clear the way for use of more unlicensed devices in the white spaces between TV channels. “Already we've talked to a whole bunch of manufacturers,” he said after a panel at the Wireless Communications Assn. show: “We've been talking to NAB and the like. People are starting to take a look and say it’s not as crazy as it sounded. I assume that the broadcasters and NAB are at least starting to have an open mind. That doesn’t mean they'll support it. We'll see.” Thomas vigorously defended the FCC’s proposal on interference temperatures during the panel, over strong industry objections. He reiterated that the OET proposal was very limited and just a trial. “The [rulemaking] says we're thinking seriously about doing this in 2 bands,” he said. “To make a presumption that we're on a binge is crazy. Manufacturers are going to judge whether we're going to go to the moon or this is a chip shot. We're making the band available under a certain set of rules. We're not building the equipment.”

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NTIA acting Dir. Michael Gallagher said Wed. FBI statements viewed by many as suggesting federal police agencies should be able to “pre-clear” new communications technologies to make certain they can be tapped under CALEA had been largely taken out of context. Gallagher told the Wireless Communications Assn. meeting in Washington that some critics had tried to pit parts of the administration against each other on the issue. In March, federal law enforcement, led by the FBI, made a 72-page filing at the FCC that made several recommendations on how FCC should address the difficulties police have wiretapping broadband and push-to- talk wireless phone calls. Critics read the proposal as a move by law enforcement to gather the authority to pre-clear new communications technologies. FBI officials have denied that was their intention. “The FBI has clarified that that is a mischaracterization of their position,” Gallagher said: “They simply would like the FCC to decide, or set broad ground rules, defining technologies as either being made to comply with CALEA or not, not that each software program, each device, pass judgment by some sub-bureau of the FBI. That is not their proposal.” Gallagher said NTIA was working with federal law enforcement “to make sure” its stand on preclearance “is adequately communicated to the industry.” Gallagher told reporters after his speech that recommendations on spectrum reform developed through NTIA as part of a White House spectrum reform initiative had gone to the Office of Management & Budget for final vetting. Gallagher refused to discuss timing of the reports, which originally were expected to be sent to the White House by May 29. One of the action plans was drafted by an interagency task force looking at the federal govt.’s use of spectrum. The 2nd was drafted by a Commerce Dept. committee on state and local government and commercial spectrum issues. “The first report deals with the government looking at how can the government do its own job better and have a policy framework for handling difficult spectrum questions,” Gallagher said. “What I really am pleased about is there’s a strong focus on management and on the tough day-to-day decisions that need to be made by agencies to make sure they're prioritizing the resource.” Gallagher added, “The second report is focused more on the private sector and there’s some very constructive thoughts we'll be offering in that report as well.”