FCC AWS Band Plan Order to be Circulated This Week
FCC hopes to circulate a draft order this week revising an Oct. 2003 advanced wireless services (AWS) spectrum band plan, an FCC source said. The new 1710-1755 MHz and 2110-2155 MHz band plan urged by the Wireless Bureau incorporates parts of proposals by T-Mobile and the Rural Telecom Group (RTG), and Verizon Wireless, the source said. The order, expected to be scheduled for the July 14 FCC meeting, also would resolve other issues raised in reconsideration petitions.
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The draft order would create the block sizes T- Mobile/RTG proposed, but in a different order, the FCC source said. T-Mobile/RTG suggested breaking the 30 MHz E Block at 1740-1755/2140-2155 MHz into 3 constituent parts to create a 6th AWS license block, leaving the A, B and C blocks unchanged (CD March 15 p8). The T-Mobile/RTG proposal would let up to 6 entities acquire spectrum in different markets, making at least 20 MHz of spectrum available in each.
Echoing a Verizon Wireless proposal, the order would move the MSA/RSA license to the A Block from the D Block. In pushing for that change, Verizon Wireless said by placing the MSA/RSA license at the lower end of the band, rather than in the middle, the FCC would let bidders efficiently aggregate the EA and REAG “building block.”
As both T-Mobile/RTG and Verizon Wireless urged, the order would create a 6th block. “The most important thing is to create 6 license blocks, have not more than 40 MHz of spectrum in REAG blocks and ensure that 20 MHz of spectrum is available for MSA/RSA,” a T-Mobile spokesperson said: “We support our plan, but we are glad to see that Verizon Wireless supports creating 6 licenses and placing 20 MHz in RSA/MSA.”
T-Mobile/RTG and Verizon Wireless band plans are similar, many observed. Both would create 6 license blocks, break E block into smaller licenses and place 20 MHz of spectrum in RSA/MSA licenses. The only variations come in the order in which the blocks are placed and the fact that Verizon Wireless would put an additional 10 MHz of spectrum in REAG licenses.
“The T-Mobile/RTG plan is better because it provides more flexibility and more ability to tailor the amount of spectrum purchase to suit the particular bidder’s needs,” the T-Mobile spokesperson said: “Our band plan does not include as much spectrum in larger areas and creates two 10 MHz smaller geographic area licenses, which can be easily aggregated with REAGs as needed. The Verizon Wireless plan has more spectrum in REAGs, so there is a potential to buy more spectrum than you really need.” Defending its plan, Verizon Wireless said reducing the number of 20 MHz REAGs to one, as proposed by T-Mobile, would reduce bidder flexibility.
The T-Mobile/RTG proposal has considerable support from the industry, especially among rural carriers. Backers include U.S. Cellular, Ericsson, Nokia, SunCom Wireless, NTCA, Alcatel, OPASTCO and PCIA. Cingular backs only the parts of the proposal that would convert the D Block into a 20 MHz license by taking 10 MHz of spectrum from the E Block, and retaining the RCA/MSA designation. But it objects to using the rest of the original E Block to create two 10 MHz (2x5 MHz) licenses, E and F, also suggested in the proposal.
The AWS order also is expected to address other issues raised in reconsideration petitions, the FCC source said. For example, it would resolve a designated entities (DE) issue raised by Council Tree Communications. Council Tree wants the FCC to limit eligibility to bid for licenses in AWS Block D (1735-1740/2135-2140 MHz) to entities qualifying as small or very small businesses, or otherwise offer a 35% bidding credit there. In a last- minute supplement to its petition, Council Tree last week proposed ways to “repair, improve and ultimately preserve” DE incentives in AWS spectrum auctions (CD June 16 p12). “The question is whether it’s the right policy to do that,” the FCC source said.