D-block Winner Shouldn’t Face Default if Negotiations Fail
The successful bidder in the D-block nationwide 700 MHz license shouldn’t face default if network sharing negotiations with the public safety licensee fail, AT&T, Frontline Wireless and Cyren Call told the FCC in petitions for reconsideration filed late Monday. Separately, public- safety agencies nationwide want the FCC to rethink a decision to pay only for 700 MHz narrowband gear deployed before Aug. 30 (CD Sept 4 p9).
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Cyren and AT&T warned that companies may skip the auction unless the default rules are changed. “If not remedied, this situation will present prospective bidders needing to make rational, economically viable business decisions with a very strong disincentive to bid on the D- block license,” AT&T said. Cyren termed the rule “draconian.”
In adopting 700 MHz band rules (CD Aug 1 p1), the FCC set up a partnership between public safety and the private sector with public safety controlling 22 MHz and the private sector auction winner controlling 10 MHz. The parties will get six months after the auction to reach a network-sharing agreement. “The only way to ensure that it will not default would be for the D- block high bidder to agree to every one of public safety’s subsequent demands in the NSA negotiation process, whether or not they are reasonable. As the commission has provided for six months for negotiation of the NSA, it clearly does not intend for the D-block auction winner to be forced to accept every public safety demand,” Frontline said.
The commonwealth of Virginia and Pierce Transit of Pierce County, Wash., called the Aug. 30 deadline unreasonable. Virginia challenged the $10 million reimbursement cap. “The commonwealth believes that its own rebanding costs will be well in excess of $3 million,” Virginia said. Pierce Transit wants the FCC to reimburse for gear bought but not deployed. “The deadline makes no allowance for parties like Pierce Transit who have paid for and taken delivery of systems that were under construction when the deadline fell. Pierce Transit has filed a waiver request with the Public Safety Bureau to allow it to continue deployment of its system, and to obtain reimbursement for equipment deployed after Aug. 30. While the waiver request remains pending the bureau advised Pierce County that it should nonetheless continue with its deployment plans,” Pierce Transit said.
Frontline continued to seek a 70 MHz spectrum cap (CD Sept 25 p8), but the Public Interest Spectrum Coalition asked the FCC to ban the winner of the D-block nationwide license from also getting a C-band license. “The commission should adopt an ‘either/or’ rule that would require a bidder that wins both the D-block and any C- block licenses to choose between the D-block and C-block licenses. The D-block licensee could acquire C-block licenses after the auction, subject to commission review of the transfer,” the coalition said.