FCC TO TAKE ON SMART ANTENNAS, RURAL, SECONDARY MARKET ISSUES
The FCC is poised to take on 3 significant wireless items today (Thurs.), even as the Nextel rebanding order appears bound to seize the headlines at the Commission’s monthly meeting. If all goes as planned FCC will hand down orders designed to encourage wireless carriers to invest in rural communities, promote greater use of smart antennas, and promote a vibrant secondary market for spectrum.
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“All of these issues are significant in their own way and all deserve attention, though most of the attention will be on Nextel,” one regulatory attorney predicted. A Wireless Bureau source said that the FCC itself is concerned the orders get due attention. The Bureau has 2 issues on the agenda. The first -- a report and order and notice of further rulemaking -- focuses on “facilitating the provision of spectrum-based services to rural areas and promoting opportunities for rural telephone companies to provide spectrum-based services.”
Carriers have focused on 2 issues in recent months. First, wireless carriers are pushing the FCC to allow the use of higher powered transmitters in rural areas. One source said that in recent years equipment has evolved to reduce interference caused at higher power levels. CTIA said in a recent filing increasing transmitter power levels would “vastly improve coverage” in rural America. Sources expect that to be part of the order.
Carriers also hope the order will eliminate the cross- ownership rule for rural service areas (RSAs), a step the Commission took for MSAs. CTIA said in the same rural filing the rule is “impeding investment” in new wireless technologies in rural areas. In adopting a proposed rulemaking last year the FCC tentatively concluded the cellular cross-interest rule should remain in RSAs with 3 or fewer competitors, but it would remove the limit in other RSAs.
The Wireless Bureau also is scheduled to present a 2nd report and order, order on reconsideration, and 2nd further rulemaking on the secondary spectrum market. The bureau is expected to propose rules allowing or leasing of spectrum to public safety agencies. Carriers hope the FCC will also provide them with more freedom in how they can divide spectrum for resale. “I anticipate that they'll do some further liberalization,” a carrier lobbyist said. “It makes it easier for carriers to do leasing and doing things like disaggregation and partitioning.” If the rules are revised, carriers would face fewer hurdles selling off part of a license -- for example 5 MHz of a 10 MHz license, or a license in a particular place.
The FCC is also expected to vote on a report and order by the Office of Engineering & Technology providing for the use of sectorized and phased-array antenna systems, known as “smart antennas.” The antennas transmit narrow beams of signals, making them particularly useful for rural communities. “The issue isn’t whether the Commission is going to do it; the issue is what are the technical parameters the Commission is going to require,” said a regulatory attorney active on the issue.