FCC Investigates Need to Revise 700 MHz Auction Rules

The NPRM draws only one tentative conclusion: E-911 and hearing aid compatibility rules should apply to services in the band. It asks a wide variety of questions on such issues as the need to carve the spectrum up into small license areas, suitable for purchase by rural and small carriers -- similar to the smaller licenses offered in the upcoming advanced wireless services (AWS) auction. Under current rules, the spectrum would be sold based on 6 license areas across the U.S., which would allow a company to provide service nationally but also would keep smaller companies out of the auction.

The FCC asks for advice on the best size of the blocks to be auctioned and requests suggestions on whether to add or change performance requirements for unauctioned spectrum -- including such alternatives as specific construction benchmarks. And it asks about the unique problems in getting advanced wireless services on tribal lands.

Wireless carriers were watching closely to see if the NPRM mentions the Cyren Call plan. It doesn’t, sources said. But the FCC could still examine the Cyren Call proposal on a separate track. “We were paying pretty close attention to see if Cyren Call caused any mischief and if there would be a vehicle,” said one carrier source: “We certainly didn’t detect that there’s an opening.” The source predicted Cyren Call may focus its efforts on Congress: “Morgan is a very smart, resourceful person.”

“With the grand-daddy of all auctions coming at us in 700 MHz in less than 2 years, I am pleased and encouraged that we begin today the process of developing service rules for it,” said Comr. Copps: “Getting this one absolutely right is absolutely necessary.” Copps said he supported a requirement that companies buying licenses act promptly build networks. “We need, of course, to give companies breathing room and regulatory certainty so they can raise capital and build networks,” he said: “At the same time, we must not countenance spectrum warehousing or any other unreasonable delay in putting our nation’s spectrum to work.”

Comr. Adelstein said he was pleased the FCC asked questions about the need for a “triggered keep what you use” rule letting the Commission reclaim spectrum unused after a specified period if another party seeks access. “My hope is that this discussion will lead the Commission moving to more of a ‘carrot and stick’ approach to the performance requirements by which we promote flexibility and innovation,” he said.

“The DTV Act requires the Commission to begin the auction for the licenses associated with the recovered analog spectrum no later than Jan. 28, 2008, and to deposit the auction proceeds no later than June 30, 2008,” Comr. McDowell said: “Given these congressional mandates, we have our work cut out for us.”

Acting Wireless Bureau Chief Catherine Seidel said the FCC notice should provide plenty of time for the FCC to polish its rules before the auction. “The item that the Commission adopted today asks the questions necessary to enable the Commission to have the information it needs, so that if appropriate it can take the steps of actually modifying the rules,” Seidel said: “We would expect commenters to be looking at [the AWS auction], looking at 700 and providing us with their views on what makes the most sense.”

“There is a growing recognition that more spectrum and funding will be needed to ensure that first responders can best make use of broadband applications available in the years ahead,” said John Melcher, Cyren Call exec. vp, in a written statement responding to the NPRM. “We believe Cyren Call’s proposal is the kind of bold approach that’s required to address both the spectrum and the funding challenges, and an increasing number of public safety leaders agree with us.” -- Howard Buskirk

Meeting Notes

FCC Chmn. Martin still isn’t providing a start date for the new Public Safety & Homeland Security Bureau, approved by the Commission March 17. At the time, officials said FCC’s previous major reorganization took less than 90 days, and this would probably would take about that (CD March 20 p1). By April 30, the FCC confirmed it had finished notifying Congress of plans to create the bureau (CD April 28 p3). “We are pretty close to being able to get that up and going, but it is a process not only in working with the Hill to make sure that they understand and support our efforts… but it also has to do with reworking staff here and we have to work not only with the internal staff but with the union as well,” Martin told reporters after the FCC meeting Thurs.: “Those processes always take awhile, but there’s not any particular issue that has arisen.” -- HB

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The FCC is still reviewing the 11th U.S. Appeals Court, Atlanta decision tossing out the Commission’s March 2005 FCC truth in billing (TIB) order (CD Aug 2 p1), Chmn. Martin said. “The lawyers are still evaluating the implications of it and what if any steps are appropriate.” Martin said the decision could affect an investigation of the agency’s truth- in-billing rules and state jurisdiction over carrier billing. “Certainly, there’s more legal [precedent] now on what our jurisdiction is,” he said: “What the impact is I don’t know. I think that’s what our lawyers are still studying.”