FCC Approves 5G Order; Few Changes From Wheeler Draft

The satellite industry failed to get key changes it sought to the order (see 1607140079), particularly on the 28 GHz band. Wheeler said during a news conference after the meeting the FCC faced “dueling” studies on the interference issues raised by satellite operators and didn't change the order while it was before commissioners. Verizon won in a dispute with AT&T over spectrum aggregation limits (see 1607080026) as the FCC stuck with the rules proposed by Wheeler rather than approving-band specific limits. Public interest groups also didn't get the changes they sought to the draft. The agency stuck with a decision to license the 28 GHz band by county instead of by larger market areas.

Commissioner Mike O’Rielly dissented on two parts of the item, the spectrum aggregation limit discussion in the further notice and the cybersecurity rules in the order, saying both were unnecessary. Commissioner Ajit Pai partly concurred on those parts, also raising objections.

“By approving the spectrum frontiers order, the United States becomes the first country in the world to identify and open up vast amounts of high-frequency spectrum for 5G networks and applications,” Wheeler said in the news conference. He called the order “the most significant step yet” toward 5G. Stakeholders later mostly praised the order (see 1607140075).

“This high-frequency spectrum will support innovative new uses enabled by fiber-fast wireless speeds and extremely low latency,” the FCC said in a news release. “While 5G technologies are still under development, today’s action by the Commission to put rules in place will provide vital clarity for business investment in this area.”

Rules requiring providers to report on the security of their networks make no sense, since carriers already have market incentives to make their networks secure, O’Rielly said. "This is the commission gathering data for the purposes of monitoring, but it is really a means for the commission to interfere in the design and operations of networks and the starting point for future regulation.”

The FCC also should refrain at this point from looking at aggregation limits, O’Rielly said. “Generally, I oppose spectrum caps in favor of the free market but, in this case, it makes absolutely no sense to impose any limits,” he said. “We do not have a consensus definition of 5G, finalized standards, a full understanding of what services will be offered, or any idea of how much spectrum is needed to achieve the capacity, speed and latency goals for particular spectrum bands, but we adopt foolish policy anyway.”

Pai agreed with O’Rielly on cybersecurity. “We lack the expertise and authority to dive headlong into this issue, and I don’t think any agency should take a band-by-band approach to cyber,” he said. “These are issues that are better left for security experts to handle in a more comprehensive way.” But Pai also said the order had been tweaked to address his concerns. Pai agreed the spectrum aggregation limits were unnecessary: “Nonetheless, because we could be years away from any high-band spectrum auctions, I hope that we’ll have time to correct course before these limits apply.”

FCC responsibilities don’t stop with the reallocation of spectrum and the agency needs to make sure that 5G is available for everyone, said Commissioner Mignon Clyburn. “Let us not forget that there are pockets in this nation where people are still living in a 2G and 3G reality.” The underserved and unserved “are just as anxious to reap the benefits of successful spectrum policies as you and me,” she said. Ubiquity and affordability have to be part of the discussion, Clyburn said.

Infrastructure Critical

Commissioner Jessica Rosenworcel said 5G requires more than spectrum and urged a continuing focus on expedited rollout of small cells. “There are a lot of challenges ahead,” she said. “But we are on the cusp of cars that drive themselves, streets that can be safer, emergency services that are more effective, healthcare that is more personalized and more capability across the board because we are more connected.”

Wheeler said in the news conference that the commission has “an agenda” to address infrastructure issues. The FCC is looking at how to speed the siting of all the new antennas that will be required, he said. The FCC’s broadband data services rulemaking will address tying the new facilities into the network, he said. “You just simply have to have access to, and reasonable rates for, the connectivity of an exploding number of base stations,” he said. Meanwhile, the FCC is seen as unlikely to OK outright AT&T and Verizon plans that rivals say would hike BDS charges (see 1607140003).

Public interest groups have raised concerns about the FCC’s approach to unlicensed spectrum in the bands (see 1607130015). Michael Calabrese, director of the Wireless Future Program at New America, said after the meeting that those concerns continue.

“The FCC’s order is extremely shortsighted,” Calabrese said. “Because the big carriers will use these bands only in city centers and high-traffic indoor venues, exclusive and indefinite licenses over large geographic areas is a recipe for leaving these millimeter wave bands vacant in more than 95 percent of the country and millions of venues. This creates a risk of foreclosure and warehousing that would undermine both competition and innovation.” Public interest groups will urge the FCC to “act quickly” on dynamic-sharing proposals deferred for further debate, he said. “Most important is to allow opportunistic public access to all unused spectrum in these bands and to ensure that the 600 megahertz set aside for sharing with federal incumbents is not auctioned, but open for use by any institution or individual.”

Public Knowledge found more to like. “We applaud the FCC for including a spectrum aggregation limit to promote competition, a requirement for a cybersecurity plan to protect the public, and performance obligations designed to bring the benefits of 5G to all Americans,” PK said in a news release.

Satellite Wins?

The satellite industry scored two potential wins in the 5G order. It's apparently getting more flexibility for potential future earth station sites than had been expected, plus grandfathered protections for earth station applications pending before the agency, one satellite industry official told us.

The industry still has to see the details of the NPRM before it knows how 5G sharing will shake out, though there were some hopeful indications the FCC listened to concerns raised, industry officials told us Thursday. The agency didn't insert any requirements on satellite protection from aggregate interference or make satellite operations co-primary with terrestrial wireless in the 28 GHz band -- both items the satellite industry heavily pushed for (see 1605110065 and 1606020035). But the Satellite Industry Association said the NPRM "address[es] some of the significant concerns ... about the potential for interference to existing and planned satellite systems" in the bands satellite will be sharing with upper microwave flexible use applications.

The FCC said under the geographic licensing regime of earth stations -- by county for 28 GHz operations, by partial economic area for those operating in the 37/39 GHz band -- satellite operators are allowed three earth stations per licensed area. Existing earth stations and those with pending applications as of Thursday that subsequently are approved are grandfathered, the FCC said.

The rules contain no specific aggregate interference protections, but Wireless Bureau Chief Jon Wilkins said the agency reserves the right to revisit any the issue if it receives reports of problems: "We're going to remain open to input from industry." Meanwhile, he said, "We're a long way from terrestrial deployment."

The FCC Thursday said its 5G order "creates a path for continued and expanded satellite operations" in the 28 and 37/39 GHz bands, with "several mechanisms to provide flexibility to satellite operators and predictability to terrestrial operators." Clyburn said the rulemaking "carefully balances the needs of all stakeholders," and Rosenworcel said the rules take steps to protect incumbent operators and allow for their continue growth. But protection of and siting of future satellite earth stations is a spectrum frontiers issue that needed further consideration before the vote, Commissioner Mike O'Rielly said.

House Commerce Chairman Fred Upton, R-Mich., and ranking member Frank Pallone, D-N.J., sent Wheeler a letter Thursday supporting action on the high-frequency spectrum and urging the FCC to also address infrastructure issues. “In the U.S. these bands will pave the way for investment and innovation in both licensed and unlicensed offerings, providing consumers with much faster and more responsive broadband, and delivering connectivity to many more devices including in the developing Internet of Things market,” they said.

“America is the world’s 4G LTE leader and, in the race to 5G, we are positioned well with this spectrum to fuel the next generation of networks, devices and apps,” said CTIA President Meredith Baker in a statement. “In our increasingly connected world, opening up new swaths of spectrum for 5G networks is critical to support ever-growing consumer demand and increasing number of connected devices,” said Jonathan Spalter, chairman of Mobile Future.

“By allocating a large amount of high band spectrum, in conjunction with ongoing FCC initiatives to make low-band and mid-band spectrum available, the FCC is creating a path for 5G which lines up very closely with Qualcomm’s technical work,” said Dean Brenner, Qualcomm senior vice president. “Qualcomm will continue working to finalize ground-breaking 5G technology and develop superior 5G products that use each and every piece of spectrum that the FCC and other regulators around the world make available to bring the tremendous potential of 5G to fruition.”

5G Americas "applauds the work of the FCC’s Spectrum Frontiers team on leading the world in this historic achievement, making available almost 11 GHz of wireless broadband spectrum in the millimeter wave bands for 5G," said President Chris Pearson. "The FCC’s rules, allowing flexible mobile use of these new bands, will allow our Region to continue to lead the wireless revolution.”

NTIA, the Competitive Carriers Association, the Wireless Infrastructure Association, AT&T, T-Mobile and Verizon largely praised the FCC. “The Order, which is the result of months of advocacy, reflects regulatory compromises designed to permit new 5G services while accommodating the business plans of incumbent licensees,” said Joan Marsh, AT&T vice president-federal regulatory, in a blog post. “A careful review of the Order will be necessary to understand the balance struck between the competing interests, but we believe that the FCC’s actions today will provide the clarity needed to move forward with confidence with 5G trials and development, ensuring continued U.S. leadership in wireless innovation and services.”

Meanwhile, protesters shouted during news conferences after the meeting about RF concerns with 5G. Todd Shields, a reporter at Bloomberg, said his FCC ID was confiscated by FCC security after he spoke with one of the protesters. "We regret the misunderstanding at today’s FCC mtg that led to the removal of a reporter’s visitors badge," an FCC spokeswoman tweeted. "The credentials have been restored."