TMI/TerreStar and ICO again asked the FCC to redistribute abandon...

basic telephone services to all areas of the country, no matter how remote, furthering the federal govt.’s goal of universal broadband access by 2007. TMI/TerreStar said, if granted the extra spectrum, they could compete more effectively with other satellite service providers, the Broadband Radio Service and the nationwide cellular/SMR/PCS providers. Further, they said, they could provide emergency responders and homeland security end-users “seamless communications using the same low-cost, broadband-capable devices in any emergency anywhere in the country.” Citing 9/11 and the Asian tsunami, ICO said: “Time and again, MSS has proven to be the only effective means of communications at times and in locations where terrestrial wireline and wireless systems have failed.” But without the spectrum, both MSS operators said, their service offerings could be constrained. On the financial end, TMI/TerreStar asked for a prompt redistribution to foster investment in the new MSS services. Both noted they have less spectrum than other MSS licensees, like Globalstar, MSV and Inmarsat. But MSS competitor Inmarsat again lobbied the Commission to license at least 3 MSS providers in the band. Inmarsat said, with entry into the 2 GHz band, it “stands ready to deploy an expansion MSS system that will provide much-needed broadband service to all of the U.S. by the end of the decade.” Replying to wireless bids for the spectrum, TMI/TerreStar said there is “a wealth of evidence” that terrestrial wireless has ample spectrum to meet its needs for the foreseeable future. Intel urged the FCC to allocate all 24 MHz of the returned 2 GHz spectrum for “flexible, fixed and mobile terrestrial use.” It estimated an auction of the 24 MHz of spectrum for terrestrial services would bring bids of over $9 billion: “This high valuation reflects the exploding consumer demand for terrestrial wireless services, and contrasts sharply with the MSS industry’s struggle for financial viability.” Intel also urged allocating all 24 MHz, not 13 MHz, of the returned spectrum for terrestrial use, saying that would provide “substantial cost savings” and “greater benefits” for wireless carriers. Intel also said maintaining only 2 MSS licensees in the 2 GHz band would suffice to keep them from gaining market power in provision of mobile voice service or broadband wireless services because of strong competition from MSS licensees in other bands and from terrestrial wireless and wireline carriers, it said. Separately, the CTIA said both wireless and satellite commenters “overwhelmingly rejected” the FCC’s proposal to give the abandoned spectrum to ICO and TMI. Neither TMI or ICO has shown a need for additional spectrum, “let alone for their planned satellite service offerings,” the group said. Pointing to the “significant interest in the 2 GHz spectrum at issue” from various segments of the communications industry, including CMRS and SDARS, the CTIA urged the FCC to “evaluate the best use of all the surrendered spectrum -- all 24 MHz -- in a single rulemaking proceeding… Where additional spectrum is to be used for terrestrial mobile service, the Commission should not classify it as auction-exempt satellite spectrum but should reallocate it and auction it for the benefit of the public.” Cingular echoed the CTIA comments, saying TMI and ICO are “years away from commencing operations and therefore have no immediate spectrum needs.” -AK, SP