Home Roaming Exclusion Inaction May Mean 700 MHz Auction Uncertainty
Carriers who challenged the “home roaming” exclusion in automatic roaming rules approved last summer by the FCC say inaction on their concerns adds uncertainty for the 700 MHz auction that began Thursday. The rule’s practical impact is that another carrier need not honor a roaming request by a counterpart with spectrum in a particular market, even if that spectrum is not cleared for use. If small carriers fear they won’t be able to sign roaming deals due to 700 MHz purchases they are less likely to participate enthusiastically in the auction, sources said.
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Chairman Kevin Martin has not circulated an order on petitions for reconsideration challenging the roaming order. They were filed by T-Mobile, Leap Wireless and MetroPCS.
“There’s a lot of uncertainty surrounding the 700 MHz auction and I think the roaming issue has been overlooked,” said a source at a medium-sized carrier. “It could have a significant impact on the valuation of the spectrum. If the commission doesn’t take care of the in-market exception… any new entrant bidding on a new license has no certainty that any incumbent carrier will roam with them prior to their building out their service area. That’s no guarantee that spectrum will actually be used to provide service to consumers.”
Successful 700 MHz spectrum bidders must wait until the DTV transition -- February 2009 -- to get at the spectrum.
“Delay in resolving the home roaming issue could indeed make bidders think twice about pursuing 700 MHz licenses in areas where they depend upon roaming agreements to serve customers,” said a source. “There is broad support for eliminating the home roaming exclusion and it would help the industry greatly to see the matter resolved quickly.”
A third source said 700 MHz poses less concern than spectrum bought in the 2006 advanced wireless services (AWS) auction, which will take years to clear. “For 700 MHz, the build-out deadlines are quite aggressive,” the attorney said. “Nevertheless, there could an effect on prices.”