National Carriers Decry Use It or Lose It Proposal
Major wireless carriers railed against a proposal to require that they use licenses they hold or give them up as part of a rulemaking on spurring wireless rollout to rural America. However, some rural interests said the proposal deserves consideration. The national carriers said a “keep what you use” relicensing proposal could reduce rather than increase investment in rural areas rather than more. These carriers also opposed “substantial service” renewal obligations, and proposed spectrum easements and spectrum underlays.
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“Cingular opposes the adoption of new rules or policies designed to require incumbent carriers to provide service in rural areas,” the carrier said in its comments. “Absent evidence of a market failure, the Commission should not deviate from its ‘market-oriented approach to spectrum policy that, where possible, has allowed economic forces to determine build-out of wireless facilities and the provision of wireless services.’ Adopting rules requiring the deployment of CMRS in certain rural areas is inconsistent with basic economic principles.” Cingular also reminded the FCC that it has found that CMRS markets are highly competitive: “In a competitive market, services will be provided where there is a return on capital invested.”
Dobson Communications said that instead of spurring investment, the keep it or lose it proposal would “create greater levels of uncertainty for mobile providers and the capital markets upon which they rely.”
CTIA warned against adopting any “command and control” proposals in the rulemaking: “It is unclear what problems these proposals are intended to remedy.” CTIA said the keep what you use proposal would force carriers into a “Hobson’s choice” between an uneconomic build-out of wireless facilities or giving up a license.
T-Mobile reminded the FCC that in general the market is working to get more investment in wireless services into rural areas. “T-Mobile urges the Commission to permit its secondary markets rules more time to operate before considering more intrusive measures,” the carrier said.
NTCA said that its surveys of members have found widespread concern about the scarcity of spectrum available in rural areas. “Rural carriers want and need additional spectrum to provide the services their customers demand,” NTCA said: “The ‘keep what you use’ approach will free up some additional spectrum.” NTCA said that when spectrum is licensed according to large geographic areas “unused spectrum should revert back to the FCC for re-licensing after giving the licensee a reasonable period of time to build out the area.”
The Rural Telecom Group was even stronger in its comments. “While RTG applauds the Commission for the policies adopted in its Rural Report and Order, RTG notes that meaningful reform cannot take place until the Commission adopts a ‘keep what you use’ licensing approach for all licenses in existing and future commercial wireless services.”