A federal appeals court in Philadelphia tossed out two key provisions in rules for designated entities (DE) approved prior to the AWS-1 auction in 2006, which were also in effect during the 700 MHz auction that started the following year. Council Tree, which took the FCC to court, claimed victory Tuesday even though the Court of Appeals for the Third Circuit did not invalidate the results of either auction.
Small and midsize carriers urged policy changes to spur competition in the U.S. wireless market. The requests came in reply comments as the FCC embarks on preparation of its next annual report on wireless competition. CTIA, AT&T and Verizon again called the market genuinely competitive.
The FCC should avoid overly broad regulations “that ignore band-specific conditions” when devising spectrum-sharing rules, TIA said at a meeting with an aide to Commissioner Michael Copps. The commission should also protect primary licensees from interference and allow flexibility for “the implementation of new spectrum sharing technologies into regulatory” policies, the association said. Voluntary incentive auctions could free up spectrum for important wireless services while providing incumbents new capital, and Congress should authorize the auctions as soon as possible, said TIA. Proceeds of spectrum auctions should be used to pay for the public safety interoperability broadband network and infrastructure, it said. FCC proceedings on the wireless communications services, mobile satellite services, D-block, advanced wireless services and broadcast bands are a good start toward meeting future spectrum demands, it said. TIA said it supports the FCC’s and NTIA’s spectrum inventory plans and the Commerce Spectrum Management Advisory Committee’s “bifurcated approach to spectrum transparency."
Unless the FCC approves rules requiring interoperability for devices across all 700 MHz spectrum bands, it will encourage the Balkanization of 700 MHz spectrum, said a paper by the Rural Cellular Association submitted to the agency. “AT&T devices may only work on the lower B and C Blocks, which are predominantly held by AT&T, and Verizon Wireless devices may only work on the Verizon Wireless’ upper C Block,” said the paper, written by University of Maryland Economics Professor Peter Cramton. “Such restrictive practices used as a competitive blocking tactic would undermine competition, reduce consumer choice, slow the build out of broadband in rural areas, prevent roaming in the 700 MHz band, reduce the value of the 700 MHz A Block spectrum and the spectrum not held by AT&T and Verizon Wireless, and harm future spectrum auctions.” Failure to approve rules will “further cement the Big Two’s dominant position,” the paper said. “Excessive concentration will undermine competition and innovation, slow the deployment of services for rural and public safety customers, encourage warehousing of spectrum, and reduce revenues in future auctions. The American consumer and public safety user will not receive the economic benefits of global production of innovative devices for 4G on 700 MHz.” Verizon Wireless and AT&T “have a near-duopoly and allowing them to adopt restrictive device practices would not only undermine competition, but it would also reduce consumer choice and slow the build out of broadband in rural America,” said RCA President Steve Berry. “If the FCC is serious about bringing broadband to unserved and underserved areas, it must put an end to handset exclusivity and mandate interoperability."
Former Alaska Republican Sen. Ted Stevens died in a plane crash on the way to a fishing lodge in Alaska Monday night, state officials announced Tuesday. He was 86. Bill Phillips, previously an outside consultant to NCTA, was among the eight others also on the flight. Officials said there were four survivors, but named only ex-NASA Administrator Sean O'Keefe and his son. The plane and fishing lodge were owned by Alaskan telecom carrier GCI. The carrier didn’t immediately say what was the purpose of the outing.
More needs to be done to spur competition in the U.S. wireless market, rural groups and Free Press said as the FCC embarks on preparation of its next annual report on wireless competition. AT&T and Verizon attacked the FCC’s latest competition report, reiterating their stance that the market is competitive, as did CTIA. Comments on the report were due Friday.
Equipment makers could seek grants to develop public-safety devices that support voice, data and video communications in the 700 MHz spectrum, under a bipartisan bill introduced Wednesday by Rep. Jane Harman, D-Calif. HR-5907 would set up a $70 million competition, run by NTIA, for research and development grants. “This process will produce devices ready for first responders’ use within five years -- hopefully sooner,” Harman said Wednesday on the House floor.
The FCC and/or Congress may have to address a law that prohibits the FCC from using competitive bidding for satellite spectrum before moving forward on mobile satellite service incentive auctions, said industry executives and the NTIA. The Open-market Reorganization for the Betterment of International Telecommunications (ORBIT) Act of 2000 outlawed such auctions to facilitate international coordination of satellite spectrum. While the spectrum in question refers to the reuse of satellite spectrum terrestrially, a 2005 lawsuit on somewhat similar reuse concluded the Act’s language is ambiguous on the auction of the spectrum, officials said. The FCC recently opened a proceeding on how best to encourage mobile broadband investment in the MSS bands, through incentive auctions and other means (CD July 16 p1).
Bills on spectrum reallocation are coming soon from Sens. John Kerry, D-Mass., and Olympia Snowe, R-Maine, and Rep. Ed Markey, D-Mass., they said after President Barack Obama committed to freeing up 500 MHz of spectrum over 10 years for wireless broadband. In a presidential memo Monday, Obama outlined a process to identify federal and commercial spectrum for reallocation, and use auction proceeds to support public safety. The effort will comprise administrative and legislative actions, and the White House plans to work with members of Congress, a senior administration official who refused to be named in stories told reporters on a conference call.
Public Knowledge proposed Thursday that the federal government “zero base” the federal “spectrum budget,” requiring every agency to reapply for the spectrum it needs, “including specific details with regard to spectrum utilization.” The group proposed government rules allowing agencies to offer on the secondary market spectrum they don’t use. Both proposals were debated at a Public Knowledge forum in Washington.