Auction 60 of lower 700 MHz spectrum, which starts today (Wed.), hasn’t drawn significant telecom industry interest. The 5 licenses offered, which went unsold in earlier 700 MHz auctions, cover smallish CMA areas in Puerto Rico. The lower 700 MHz spectrum, still encumbered by broadcasters, will have to be cleared through the DTV transition. But companies led by Aloha Partners, which has paid some $100 million for 700 MHz licenses, believe they can use it for robust wireless data networks. An industry source called the licenses on sale the “dregs from auction 49m” which elicited scant interest during that sale and which the FCC is trying to sell again. Aloha and 4 other carriers have qualified to bid.
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.
Sen. Sununu (R-N.H.), at last week’s Senate Commerce Committee hearing on the DTV transition (CD July 13 p1), was among members urging industries to avoid using “the specter of consumer confusion” on a hard analog cutoff to push political and commercial agendas.
The Aug. 4 FCC meeting agenda includes a reconsideration order revising an Oct. 2003 advanced wireless services (AWS) spectrum band plan, according to an agency source. The order, originally set for the July meeting (CD June 20 p1), was held off by the Chmn. Martin’s office due mainly to complications from designated entity (DE) issues raised by Council Tree Communications in late filings, several sources said.
The U.S. Appeals Court, D.C., upheld an FCC decision to auction terrestrial multichannel video distribution and data service (MVDDS) licenses in the primarily satellite 12 GHz band. In Northpoint vs. the FCC, the Court denied challenges to new FCC regulations, which: (1) Allow terrestrial MVDDS to share the 12.2-12.7 GHz bandwidth spectrum with direct broadcast satellite (DBS) TV services. (2) Allow the FCC to auction MVDDS use of that spectrum. DirecTV, Satellite Bcstg. & Communications Assn., EchoStar and SES Americom said use of terrestrial service use of the DBS frequency would cause too much interference. Northpoint, which claimed credit for inventing MVDDS technology, said it should get the frequencies rather than the FCC allocating them by auction.
Inmarsat was out in front opposing allocation of more 2 GHz spectrum to Mobile Satellite Services (MSS) operators ICO and TMI/TerreStar. The MSS competitor -- which said it’s developing plans for broadband and multimedia MSS for handheld devices and vehicles using spectrum in the 2 GHz band -- asked the Commission to consider allocating it the extra 1/3 of the spectrum in question.
XM’s purchase of WCS Wireless has wireless operators in the WCS spectrum -- which XM used to neighbor but now owns 10 MHz of -- even more concerned about interference. The WCS Wireless acquisition, which cost XM $200 million, also further complicates the FCC’s task of completing the rules on SDARS terrestrial repeaters in a 4-year-old proceeding, officials said. The rulemaking has been open since the FCC granted nascent Satellite Digital Audio Radio Service (SDARS) the permission to deploy terrestrial repeaters under a grant of special temporary authority on a noninterference basis in 2001.
The Senate Commerce Committee’s DTV hearing today (Tues.) is a long-awaited public airing of complex issues befogged in political uncertainty. The committee is seen as balancing the immediate need to raise revenue from spectrum auctions against a potential public backlash if the analog TV signal cutoff stumbles. The panel is holding the hearing despite lack of a draft bill, expected to be ready by the July 4 recess but is still in development, according to committee staffers.
Spectrum policy is getting more scrutiny in Congress in light of the 2007 expiration of auction authority, Congressional Research Service analyst Linda Moore said in a report for Congress. Some have questioned the system’s efficacy. Despite the FCC’s conclusion that auctioning spectrum licenses has sped deployment of new wireless technologies, many ask if the FCC shouldn’t augment auction policy “more aggressively” with other market- driven solutions such as licensing fees.
Cingular or Verizon Wireless likely would face the toughest fight if they emerged as the purchasers of T- Mobile, regulatory sources said Tues. Other potential players, including rumored suitor Vodafone, or less conventional wireless players like Comcast or even Microsoft, would likely have an easier time winning approval, they said.
The FCC sketched lines Thurs. in a 2 GHz proceeding with 2 public notices announcing Commission intent to reallocate S-band spectrum previously surrendered by Boeing, Iridium and Celsat. The FCC said it intends to divide the 40 MHz of spectrum in the 2GHz band into thirds: 2/3 earmarked for ICO and TMI/TerreStar, the 2 Mobile Satellite Services (MSS) licensees remaining in the band, with the other 1/3 up for grabs. A heated battle for the spectrum, prime for MSS or wireless services, is likely to ensue.