MSS Operators Oppose Extension of BAS Relocation Waiver
TerreStar and New ICO Satellite Services opposed a proposal by Sprint Nextel and broadcasters that the FCC once again extend the deadline to move electronic news gathering services to new spectrum. But both offered a compromise, saying an extension would be acceptable if the commission drops the top-30-markets rule at the same time. The extension request is still before the Office of Engineering and Technology.
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The revised deadline for completion was March 5. The band was originally supposed to be cleared by September 2007. Sprint said last month it was having trouble moving some licensees (CD Feb 4 p9). They are TerreStar, which wants to use the spectrum to offer voice and data through a BlackBerry-type device, and ICO, which says it plans to offer voice, data, video and possibly broadband using portable devices. ICO has had a satellite in orbit since last April and TerreStar plans a June launch. Both are eager to offer service, especially since the satellites have limited useful lifetimes.
In 2008, Sprint and the broadcasters asked the commission to give them until Feb. 7, 2010, to complete the relocation of broadcast auxiliary services from the 2 GHz band. The relocation is tied to the 800 MHz band reconfiguration, also the subject of delays. The spectrum is part of the 10 MHz that Sprint is to receive in the rebanding.
TerreStar said Sprint’s relocation efforts are “demonstrably inadequate.” It said Sprint’s relocation progress reports never acknowledged the original FCC deadline to finish the relocation and weren’t changed to take into account the revised March deadline. Based on recent numbers released by Sprint, 64 percent of primary BAS operators haven’t been moved, the company said. “Given this record, Sprint’s request to extend the sunset date for MSS reimbursement obligations should be denied; Sprint should not be rewarded for inadequate relocation efforts,” TerreStar said. “Extending the sunset date, moreover, would unfairly penalize TerreStar by disturbing settled expectations.”
ICO made similar comments. It’s “met all milestone requirements to construct and launch its MSS system, made all necessary arrangements for clearing fixed service links in the 2180-2190 MHz band, and spent hundreds of millions to construct, insure, launch and operate its system,” the company said. “Despite these accommodations, ICO continues to incur monthly costs to operate and maintain its satellite and ground networks.”
As a compromise, TerreStar and ICO said the FCC should consider eliminating the top-30 markets rule, which prevents 2 GHz MSS systems from beginning operations until BAS stations in the 30 largest markets and fixed BAS stations everywhere have been relocated. In granting the last extension, the OET said it was considering getting rid of the rule. Officials there have been busy with DTV transition issues but feel some pressure to also act on the BAS issue, said a satellite industry executive. “I think they want to at least come up with a new deadline,” the executive said. “If they come up with anything else is anyone’s guess.” If the FCC eliminated the top 30 markets rule, both companies could start using their satellites in some markets on a shared basis with BAS, the person said.