FCC Moving Forward on Controversial H-block Auction

If all goes as planned, the order and rulemaking will be sent to the other commissioners Thurs., heading for a vote at the Sept. agenda meeting, we're told. The H-band auction has been in the works for some time. The latest development is that the order will also allocate 10 MHz of 2.1 GHz spectrum, but other changes could be made to the order. CTIA had proposed giving Nextel spectrum at 2020-2025 MHz and 5 MHz of spectrum around 2175 instead of the 1.9 GHz spectrum it eventually received.

The H-block auction in particular has proven controversial, with a group of carriers led by CTIA asking the FCC not to schedule an auction, but instead allow the spectrum to be used for low-power, nonlicensed purposes (CD Aug 2 p). In a recent filing, the carriers argued that existing PCS mobile receive filters “cannot sufficiently attenuate in-band H-block emissions” and would “overload other PCS mobile receivers.”

Nextel, which would get G-block spectrum if it agrees to the 800 MHz rebanding plan, is considered by other carriers uniquely positioned to make a play for the H-block spectrum. Sources said equipment makers would have an easier time developing handsets that could use both G-block and adjacent H-block spectrum than H-block and other spectrum. In addition, Nextel doesn’t have the same interference concerns as current PCS license holders.

“It looks like the FCC is intent on holding an H-block auction and thinks it can be done safely,” said one carrier source: “We'll hear them out, but we're dubious.” A regulatory attorney said he expects a major push by carriers against the proposal before it’s placed on the sunshine agenda cutting off further lobbying, a week before the Sept. 9 meeting.

“H-block has been incredibly controversial,” the attorney said. “You have basically the entire CMRS community saying they have tremendous problems and Nextel parting company with them. All of a sudden you have Nextel with all this spectrum in the G-block and now they could get H-block, and in the bargain potentially cause interference.”

The FCC has also examined auctioning 2155-2180 MHz spectrum, but that’s not part of the pending item. Carriers have called on the FCC to add this spectrum to the 2110-2155 MHz that has been allocated to the downstream link of the spectrum FCC set aside for advanced wireless services. Under the plan, FCC would auction “asymmetrical” licenses offering a total of 45 MHz at 1.7 GHz for upstream connections and 70 MHz at 2.1 for downstream.

An industry source said efforts to move the stalled spectrum relocation trust fund bill (HR-1320) were likely in the Senate once it returns from recess in Sept. HR-1320 is designed to use auction revenue to help pay to move govt. spectrum users to different spectrum. Members of Congress said the bill would help speed deployment of 3G services. HR-1320 moved quickly in the House (CD June 12 2003 p1) in 2003, but stalled in the Senate after Sen. Sununu (R-N.H.) successfully attached an amendment designed to help Northpoint Technology gain access to spectrum (which the FCC then auctioned before the legislation passed). Congressional and industry sources have said the Northpoint language probably wouldn’t be a problem in the future. However, an industry source said there could be other obstacles to passage of HR-1320. Senate Appropriations Chmn. Stevens (R- Alaska) and other senators probably will push amendments for E-911 and a national alert system, an industry source said. An industry source said several wireless carriers and CTIA were supporting the underlying bill, but amendments could complicate the efforts. Several senators could oppose the bill if such amendments were added, an industry source said.