Wireless Issues Taking Front Stage at FCC

“The Commission seems to be moving forward on a lot of wireless issues all of a sudden,” said a regulatory lawyer: “There’s suddenly been a lot of attention in the past week.”

In his UBS comments Thurs. morning, Martin led off by discussing the AWS auction, which he called a success. “This is the largest amount of spectrum that we've ever made available, that is capable of providing wireless broadband services,” he said. “It’s going to be probably our biggest, most successful auction. We're going to raise almost $14 billion.”

Martin also highlighted for investors the 700 MHz auction, which he called “another significant auction,” set for 2008, before the DTV transition is complete: “This spectrum is very valuable,” he said: “Technologically, it’s capable of carrying a lot of information at relatively low power levels.”

Martin said the upcoming opening of broadcast white spaces also will be significant for wireless. “The Commission has a great potential to unleash a significant amount of spectrum that can be able to be utilized on an unlicensed basis,” he said. “We're making sure that we're not going to create anything that would interfere with the TV broadcasters. I think that is actually critical and of paramount importance.”

Among wireless items moving forward, the Office of Engineering & Technology this week released a tentative schedule for opening broadcast white spaces -- which is to lead to the sale of devices that could operate in the band in 2009. A regulatory lawyer said the notice itself was unusual. “It was very odd for OET to put out something that says, “Here’s what we expect to do -- except by the way we have no record to support it, so you'd better give us a record,"” the source said. But the release brought support from broadcasters: “We are pleased the FCC has taken the sensible position of ensuring that these devices will be tested rigorously, and that no marketplace introduction will occur until after broadcasters complete a successful transition to digital television,” NAB said.

The FCC late last week sought comment on ways to spur greater use of 700 MHz guard bands (CD Sept 12 p3). Sources said the FCC is also close to release of orders addressing failure of wireless carriers to meet last year’s location- capable handset deadline. The main missing order on Sprint Nextel problems is on circulation.

“Now that the chairman and the head of the NTIA have passed their nomination hearings I think the market expects both agencies to be pretty effective on coordinating spectrum management issues,” said Jessica Zufolo, an analyst with Medley Global Advisors.

“A number of recent events demonstrate that the demand for spectrum exceeds the current supply,” said Stephen Coran of Rini Coran. “This pent-up demand is reflected in the current bidding for AWS licensees where not only have incumbents bid actively, but so have newcomers such as the cable industry… The chairman is simply responding to what the marketplace is telling him -- that the public can harvest the benefits of new innovative services if enough spectrum is made available.”

But another regulatory lawyer questioned whether anything has changed. “They are the execution Commission,” the attorney said. “They're getting auctions done on time. They're getting themselves in a position to do auctions. That’s their spectrum policy to make these things happen in a timely fashion.” The lawyer said the Commission’s preparation for the 700 MHz auction has been particularly messy: “They made it into 3 different notices. It’s all over the place. There’s a public safety notice, there’s a guard band notice, there’s a regular notice. That should have all been one thing.”