Business Plan for Licensed Spectrum Said Key to 900 MHz NPRM Debate

The most-debated rule gives unlicensed users greater interference protection under “Part 15” in the FCC rules. In other bands, when interference occurs unlicensed operators must exit. In LMS bands, it’s licensed users who must avoid interfering. Thanks to superior propagation characteristics, the spectrum, long home to baby monitors, cordless phones and other unlicensed users, continues to stir conflict despite the uncertainty of investment there.

Progeny “welcomes” the Commission’s new look at the LMS band rules, it said. The firm, which runs position-locating services in the LMS bands, said the NPRM will promote better security and law enforcement, balance licensed and unlicensed use of the spectrum and encourage investment in the bands.

In a filing that “vigorously” opposes the NPRM, several public interest groups claimed the rules “virtually replicate” Progeny’s 2002 petition that began the reconsideration. The LMS band has shown “continued failure,” the filing claimed, evidenced by the 1999 auction’s “absurdly low” prices. The current NPRM offers no justification for adopting the changes, it said. Those petitioners, including New America Foundation, Media Access Project (MAP), Acorn Active Media Foundation, Alliance for Community Media, Center for Digital Democracy, Champaign-Urbana’s Community Wireless Network, Common Cause, Consumer Federation of America, Freenetworks.org, Free Press, National Hispanic Media Coalition, Prometheus Radio Project and Public Knowledge, said the 900 MHz band’s evolution has caused it to see more frequent use by devices ranging from the “prosaic but useful” to “critical emergency response equipment.”

The 1999 M-LMS auction netted only $4.5 million, evidence bidders knew the encumbrances, MAP Senior Vp Harold Feld told us. The real issue isn’t unlicensed interference, he said, but lack of value in Progeny’s service, now replicated by GPS and other technologies. “In a rational world,” he said, firms not meeting buildout mandates have their licenses terminated and “and we do other things in the space.” The push to change Part 15 rules reveals a failed business model “throwing a Hail Mary pass,” said Jim Snider of New America Foundation. Snider and Feld agreed that, despite 100 million plus unlicensed devices in the 900 MHz space, there are almost no licensed devices, precisely because firms know the licensed business plan won’t work.

Revisiting the rules now would unduly reward spectrum gambling, both said. “These guys bought, at auction, licenses knowing what the rules for use were… that the FCC would treat them as ‘guidelines’ subject to constant reinterpretation encourages speculation,” Feld said.

Progeny’s plan isn’t the problem, the spectrum regulation is, said Progeny counsel Janice Obuchowski. “Our pleading articulates a sound business strategy destined to succeed when the FCC implements up-to-date regulations for this band. Colorful rhetoric won’t advance the public interest here,” she told us. “Sound science,” based on proof new technologies prevent harmful interference, will, she said.

Other parties voiced wariness of change. Millions of unlicensed devices now in play for the bands are in a market that’s “growing rapidly” and will keep doing so, TIA said. The FCC should “refrain from modifying its regulations governing the licensing and operation of M-LMS systems,” the group said. A petition from small businesses operating on unlicensed spectrum in the band urged the FCC to “refrain from modifying its regulations” on M-LMS systems. Motorola asked the FCC to keep the “safe harbor” rule so Part 15 devices aren’t deemed to cause harmful interference.