FCC Makes Further Changes to Rules for 3.5 GHz Shared Band

The order approved Thursday “maximizes efficient use of the spectrum by adopting an engineering-based approach for determining when a Priority Access License area is in use, which will facilitate certainty for Priority Access Licensees and opportunistic access to unused spectrum for General Authorized Access users,” the FCC said in a news release. The order also adopts a “robust and flexible secondary market regime” for PALs and “balances” expanded access to the band with the need to protect fixed satellite service operations, adopting “protections that will be tailored to the characteristics of each grandfathered earth station,” the FCC said.

The three-year license terms for PALs mean industry will not pursue the licenses, O’Rielly said in a news conference after the meeting. Operators need more certainty before they are willing to make an investment, he said. “What you’re going to end up with is just the federal government users and unlicensed,” he said. “Don’t pretend that there are three legs if you’re going to cut one of the legs in half.”

Pai concurred with parts of the order, saying he has some concerns. But Pai voted for the order in general, noting that he was able to get a change, under which the FCC will offer a PAL in rural areas even when there is a single provider that seeks it. “Having grown up in rural Kansas, and having visited many rural communities in my time on the commission, I can tell you that it is often difficult enough to get interest from one provider, let alone two,” Pai said.

AT&T recently questioned whether carriers are likely to pursue the PALs under the rules as revised Thursday (see 1604110033). But Verizon offered a more positive take. “The 3.5 GHz band is an excellent opportunity to demonstrate how spectrum sharing can free up valuable spectrum for commercial mobile broadband networks, particularly the small cell deployments that will be critical to 5G services,” said Patrick Welsh, Verizon vice president-federal regulatory affairs. The higher power levels in the revised order “will promote investment and accelerate deployment in the 3.5 GHz band,” Welsh said.

"While some of the FCC’s decisions will improve certain technical aspects of the service rules, the FCC failed to put into place appropriate incentives and protections for licensed users and risks undermining the success of its spectrum sharing model," said Scott Bergmann, CTIA vice president-regulatory affairs. Bergmann said given the questions, the FCC shouldn't use the same model in other bands until it fully tests how it works at 3.5 GHz.

Commissioners Jessica Rosenworcel and Mignon Clyburn were enthusiastic about the future of the band. “With this multitiered approach, we finally ditch the tired notion that we face a choice between licensed and unlicensed airwaves,” Rosenworcel said. She said the approach is critical to the future of the IoT. “Best thing about 3.5 GHz band effort? @FCC is ditching tired notion that we face a choice between licensed and unlicensed airwaves,” she tweeted.

“The new Citizens Broadband Radio Service is a unique spectrum sharing regime that will, in a word, revolutionize the way we do things,” Clyburn said.

“The government is frequently criticized for thinking too narrowly and doing things one way because that is the way they have always been done,” Chairman Tom Wheeler said in his written statement. “The Citizens Broadband Radio Service is not one of those cases. Here, the Commission has taken bold steps to pursue a new approach.” Wheeler said during a news conference that the band is important to 5G.