Smaller AWS Licenses Gain Support of Some Comrs.’ Offices
At least some FCC commissioners’ offices are leaning toward creating smaller advanced wireless service (AWS) block sizes in light of proposals from the Rural Telecom Group (RTG)/T-Mobile and MetroPCS, industry sources said. “At least 2 of the Commissioners’ offices have expressed support for making available spectrum according to smaller licencing areas to provide service to rural communities on an expedited basis,” an industry source said. An FCC order revising an Oct. 2003 AWS band plan for 90 MHz of 3G spectrum, expected to come to a vote at the next FCC meeting, is being reviewed by commissioners but isn’t final, we're told.
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MetroPCS’s recently proposed AWS band plan seems to have gained the sympathy of at least some FCC Commissioners’ staff members, but it’s unclear whether it will make it into the order, said a 2nd source who follows the proceeding. Several legal aides seem inclined to create smaller AWS block sizes such as MetroPCS proposes. They are swayed by the fact that major economic areas (MEAs) mirror how most PCS licenses were issued back in the 1990s, the source said. “Some advisors say something should be done” to ensure that smaller companies can participate in the auction, “but they didn’t say whether they were going to adopt” the MetroPCS proposal, the source said: “There might not be a consensus yet, but I understood it’s getting a serious discussion.”
Staff from each commissioner have met with MetroPCS to discuss the plan, according to FCC sources. “We did get it [proposal] and it’s considered, but I am not sure whether we are going to act on it,” an agency source said.
The MetroPCS proposal -- one of the 3 the FCC is weighing -- would create 7 license blocks of either 10 MHz or 20 MHz, and “an even greater diversity of license sizes,” consisting of one 10 MHz block licensed on an MSA/RSA basis, one 20 MHz MEA block, one 10 MHz MEA block, two 10 MHz EA blocks, one 20 MHz EA block and one 10 MHz REAG block. The RTG/T-Mobile proposal seeks to break the 30 MHz E Block at 1740-1755/2140-2155 MHz into 3 parts to create a 5th AWS license block, leaving the A, B and C Blocks unchanged. A 3rd Verizon Wireless proposal, unlike T-Mobile/RTG’s, would put blocks in a different order and put 10 MHz more spectrum in REAG licenses.
MetroPCS’ proposal is viewed by some smaller carriers, such as Leap Wireless, as a step further compared to the T-Mobile/RTG plan. Leap originally supported a different plan by the Rural Telecom Group (RTG) and T-Mobile, but said Mon. the MetroPCS proposal “takes the direction and underlying principles of the RTG/T-Mobile AWS band plan even further.” The MetroPCS proposal would “encourage participation in the AWS auction by carriers of all sizes who, like Leap, require access to additional spectrum to grow their businesses,” Leap told the FCC in an ex parte: “The multiplicity of spectrum blocks and license areas of varying size in the MetroPCS plan will accommodate diverse business models and service plans, which will foster more CMRS competition and thereby benefit consumers.” Other MetroPCS plan backers are Royal Street Communications, CSM Wireless.
“It makes sense to have MEAs to some extent,” said David Siddall, an attorney representing MetroPCS: “MEAs are similar in size to MTAs [major trading area], which were used in the 90s for original PCS licenses. I'd be surprised if there wasn’t at least one MEA” incorporated in the final band plan.” Siddall said “buying MEAs and putting them together is easier than buying REAGs and then selling the unused. We don’t object to people aggregating as much licenses as they want but there are a lot of licensees who need less spectrum.”
MetroPCS’s “philosophy is consistent with the T- Mobile/RTG’s but we are going one step further,” Siddall said: “They [T-Mobile/RTG] are obviously heading in the right direction.” The FCC might devise a plan that doesn’t match any of the proposals but “we hope it will have at least some of their elements,” Siddall said: “They [FCC] can look and see what works best based on the proposals they received.”