2 GHz Spectrum Demand High, at Least in FCC Comments

One key question in the proceeding is whether the spectrum should simply be allocated to existing MSS operators or made available to anyone, probably through a further FCC proceeding and eventually an auction. At least one filing has indicated that the spectrum might be worth $6 billion at auction. Citing the level of interest, CTIA and others said the best way to allocate it is through auction, probably following an FCC rulemaking: “The 24 MHz of unassigned spectrum is of great value and demand is significant.”

Some of the most aggressive comments came from Sirius Satellite Radio, which said the FCC should simply allocate all 24 MHz to Sirius, nearly tripling the firm’s current spectrum. Sirius said the allocation would allow it to offer “innovative” new services such as video and broadband. It said none should go to MSS operators because “the promise of MSS is still uncertain,” and auctions probably are either forbidden by recent U.S. Appeals Court, D.C., decisions or"unjust” because they would exclude parties that provide international services.

ICO and TMI each said the FCC should simply allocate the spectrum to them, rather than to other MSS operators or to terrestrial wireless firms. ICO said that’s “the only option that will achieve the Administration’s goal of providing broadband access to all Americans by 2007.” Incumbent MSS operators are using regulatory processes to prevent ICO and TMI from having enough spectrum, ICO said, and terrestrial wireless interests already have “hundreds of MHz of spectrum,” so adding a few more would have little effect. TMI suggested it would use the spectrum for “innovative” 3G and 4G wireless in hybrid networks, providing data rates of 2 Mbps or more.

Like ICO and TMI, other satellite interests, including Lockheed Martin, said the FCC should keep all the 24 MHz available to MSS. All the satellite interests cited public safety benefits, as well as the ability to provide service to unserved areas of the country. The Satellite Industry Assn., noting that the FCC recently gave nearly half of MSS spectrum to terrestrial wireless, said “further reallocation would jeopardize the development of next-generation MSS networks. SIA also noted that terrestrial wireless will soon get access to 175 MHz of additional spectrum.

Further FCC proceedings on reallocating the spectrum were supported by several wireless groups, as well as Intel. U.S. Cellular, for example, said giving the spectrum to MSS would be “premature” and it would be very useful for advanced wireless terrestrial (AWS) networks. Intel said “the best means for achieving” public interest goals would be to “permit fully flexible use of the returned spectrum and conduct an auction.”

Other satellite comments included: (1) Globalstar said any allocation of the spectrum would “severely prejudice” its efforts to reverse the “erroneous cancellation” of its own 2 GHz allocation. (2) Inmarsat said the FCC should conduct a rulemaking to determine the optimum number of MSS competitors, then divide the MSS spectrum evenly among them, without reallocating any spectrum to non-MSS uses. (3) Boeing said its decision to give back MSS spectrum shouldn’t cast doubt on the future of MSS itself, particularly since the FCC has set rules allowing an auxiliary terrestrial component. (4) Hughes Network Systems said reallocating any spectrum to non-MSS uses “could frustrate the deployment” of new MSS.

Broadcasters should get back at least a portion of the 2 GHz spectrum, since the FCC took 35 MHz of broadcast auxiliary spectrum (BAS) away 10 years ago, the Society of Bcst. Engineers (SBE) said. It’s “interesting” that 10 years later, there has been no productive use of that spectrum, since Boeing, Celsat and Iridium all surrendered their authorizations, SBE said. It said it’s probably too late to return to original broadcaster use of BAS, but at least 12 MHz should be allocated for wireless microphones used by broadcasters.