The FCC approved 4-0 an NPRM proposing revised rules for a program to pay for the replacement of equipment from Huawei and ZTE in U.S. networks, as expected (see 2102110053), at the commissioners' meeting Wednesday. Acting Chairwoman Jessica Rosenworcel stressed that even more than the previous administration, she's emphasizing coordination with other parts of the federal government in her approach to supply chain risks. Commissioner Brendan Carr said the U.S. must stay tough on China.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
A House Communications Subcommittee hearing Wednesday appears likely to focus on promoting $7.6 billion in E-rate funding included in Commerce Committee-advanced language to be added to a coming COVID-19 budget reconciliation package (see 2102120066), plus other measures to improve broadband access during the pandemic. House Commerce Republicans unveiled an alternative broadband policy agenda Tuesday, which largely draws on bills they first filed last summer (see 2102120066).
NCTA and its members urged adopting 3.45-3.55 GHz rules consistent with those in the citizens broadband radio service band, in a call with FCC Wireless Bureau and Office of Engineering and Technology staff. “NCTA noted the successful outcome of the 3.5 GHz CBRS auction, and the role that the service rules for that band played in attracting a diversity of auction participants … and encouraging the widespread deployment of the spectrum,” said Tuesday's posting in docket 19-348. Charter Communications, Comcast, Cox and CableLabs participated.
President Claude Aiken and others from the Wireless ISP Association laid out its positions on spectrum bands in a call with FCC Commissioner Nathan Simington. In 2.5 GHz, WISPA seeks a “single-round, sealed bid auction.” Move forward with the opening of 5.9 GHz for unlicensed use, WISPA said: “We noted the benefits that consumers are receiving from more than 100 Special Temporary Authority grants to deploy” there. WISPA members are “very interested” in the 4.9 GHz band, said a filing posted Monday in 19-348 and other dockets.
Adopting final service rules for the 12 GHz band will probably take the FCC at least 18 months, with more engineering and other study needed, experts said Monday during an Incompas webinar. Commissioners approved an NPRM 5-0 in January (see 2101130067) at the last meeting under then-Chairman Ajit Pai. Experts said comments will help the FCC decide what action to take.
Comcast likely wasn't a big participant in the C-band auction, judging by the money it plans to plow into stock repurchases, analysts said. In a Q4 call Thursday, CEO Brian Roberts didn't directly address the FCC C-band or citizens broadband radio service. He said the company's "capital-light" mobile model, led by mobile virtual network operators, "is the right one for us." The stock closed up 6.6% at $51.60.
The assignment phase of the C-band auction starts Feb. 8, the FCC said Tuesday. Bidders that won at least one generic block of spectrum in a single partial economic area in the clock phase are eligible, not required, to bid in the assignment phase for frequency-specific licensing blocks. Rules prohibiting communications by each party that filed a short-form application apply until the end of the auction, said the Wireless Bureau and Office of Economics and Analytics. A mock auction is Feb. 4.
Verizon had mixed results, as the first major carrier to report Q4 Tuesday. One overhang, analysts said, is how much Verizon spent in the FCC C-band auction. Executives couldn’t comment during the FCC quiet period. They expect the TracFone buy to close in the second half of the year. The stock closed 3.2% lower Tuesday at $56.57. AT&T reports Wednesday morning.
The FCC said it will lift the T-band freeze after President Donald Trump signed into law (see 2012280052) the FY 2021 appropriations and COVID-19 aid omnibus bill, which includes a repeal of the mandate that the FCC auction the spectrum. “Now that the Commission is no longer required to implement the T-Band Mandate, the rationale for the suspensions no longer exists,” said Tuesday's order by the Wireless and Public Safety bureaus. Within 30 days, bureaus will resume processing such applications for license renewals and “process all other pending T-Band applications, but dismiss without prejudice any pending applications that include a request for waiver of the Suspension Notice,” the order said.
Ajit Pai, who leaves the FCC Wednesday, had one of the busiest conclusions to a chairmanship in recent history as he closed out many items. That was deliberate, Pai said in an interview. We’re “sprinting to the finish," he said Friday evening. Pai said all the big things he wanted to do he started in his first three years. “We didn’t want to leave significant items lingering out there for the last year,” he said: “Things can fall through the cracks before you know it.”