NTIA Asks Agencies to Develop 1.7 GHz transition Plans
NTIA sent an aggressive signal Thurs. that the govt. will move quickly to take the steps needed for a planned June 2006 auction of advanced wireless service (AWS) spectrum. The agency sent federal agencies formal notification of their new obligations under the spectrum transition fund bill (HR-5419) signed into law by President Bush on Dec. 23. NTIA asked each affected agency to submit its cost estimates and schedule for relocation by Sept. 15.
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“We begin the new year with firm and decisive action to grow our economy and light the way for wireless innovation,” NTIA Dir. Michael Gallagher said. “I commend the FCC for its prompt response in setting forth an 18- month time frame leading to auctions as early as June 2006. I look forward to working with the Commission and with the other departments and agencies -- in particular the dedicated spectrum team at the Department of Defense - - to facilitate efficient auctions and the timely relocation of incumbents.” FCC Chmn. Powell had been equally quick to ask NTIA to take the step it took Thurs.
The AWS spectrum, 90 MHz at 1710-1755 MHz and 2110- 2155 MHz, will be one of the most significant blocks of spectrum up for auction in many years and could figure prominently in wireless carrier 3G plans. The spectrum to be cleared through the fund is mostly military radios in the 1700 MHz band.
By most accounts, govt. agencies led by DoD. are ready to move forward after the approval in Dec. of the long-stalled legislation creating the transition fund. DoD and NTIA actively promoted the legislation on the Hill. While some carriers appeared lukewarm CTIA and T- Mobile in particular had lobbied for the bill.
Matthew Flanigan, pres. of ITAA, told us the AWS auction will be a highly positive development for equipment manufacturers. “We're glad Gallagher has done this,” Flanigan said. “It opens up a lot of opportunities for all the new technologies, the technologies you're seeing here at [the Consumer Electronics Show] and you'll see at Supercomm in June.”
Flanigan added: “There are a lot of opportunities that potentially have been held back because of limited spectrum and with this expanding the spectrum capabilities it just opens up a lot of opportunities.”
“It shows its going to be full stream ahead with the leg finally being passed. Both agencies are not going to dally,” said Rebecca Arbogast, wireless analyst for Legg Mason. “There’s still 18 months built into the process, but they don’t want it dragged out beyond that.” Arbogast said it remains to be seen how strong carrier interest will be, depending largely on whether consumers buy products that will be offered for 3G services.
“So far in terms of spectrum for voice and even Blackberry service most carriers say there’s probably enough spectrum out there,” Arbogast said. “As they move to 3G they'll need more. The question is how much more. Nobody knows the answer to that.”