Wireless backhaul provider FiberTower told the FCC that much more must be understood about potential interference from satellite signals in the 24 GHz band before the Commission can allow unfettered satellite operations there. The comments came as satellite operators, and others interested, offered comments on proposed rules for providing satellite operators with what amounts to another 400 MHz of spectrum in the 17 GHz and 24 GHz bands.
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.
Leap Wireless stock is a good buy, the Stanford Group said Mon. Leap’s buildout plan for 24 million new points of presence using spectrum from the recent AWS auction increases the company’s expected profits about $15 million and raises share value almost $3, the analyst firm said. Leap should be able to finance the 2-year new market deployment without going into debt, the report said, letting it refinance its current loans and keep cashflow high.
The recently concluded AWS auction was a major success, despite complaints by Council Tree and other designated entities seeking to overturn the results, the FCC told the 3rd U.S. Appeals Court, Philadelphia. The agency acted within its authority under the Communications Act in significantly curbing designated entities’ (DEs') ability to buy licenses at reduced prices and then sell them through the secondary market, it told the court.
Cable operators probably will use AWS spectrum to deliver wireless broadband, said executives at 2 firms that bought AWS spectrum in the FCC auction that ended last month (CD Oct 6 p9). The service won’t be available for several years, said officials at Bend Cable and Cable One. Another successful bidder, Cox, hasn’t decided how to use spectrum it agreed to buy for $248.3 million, it said.
Broadcasters’ mobile video opportunities aren’t altering TV station values - yet, industry officials and analysts said. VHF stations historically have been valued more highly thanks to better propagation signal characteristics. But for reaching handheld devices a UHF broadcast’s shorter wavelength beats VHF. The UHF/VHF price gap has shrunk significantly, but not due to mobile DTV, broker Frank Kalil said. However, new services like mobile TV or digital multicasting might add value, he added: “Right now [digital channels are] not worth a lot of money, but we're only a couple of years away from the day they will be.”
The FCC Thurs. approved an order that will allow Qualcomm to start offering high speed video in spectrum it owns in the lower 700 MHz band through subsidiary MediaFlo. While the FCC imposed strict controls on interference to broadcast customers using adjacent spectrum, MediaFlo said the order will allow it to proceed as planned with a launch now expected in combination with Verizon Wireless in early 2007.
The FCC Thurs. opened the door to use of broadcast “white spaces” for wireless broadband, approving a long- anticipated rulemaking. But the Commission declined to make a recommendation on whether the spectrum should be offered purely for unlicensed use, as sought by Intel, Microsoft, HP, Dell and other major high-tech companies.
T-Mobile nearly doubled its spectrum position across the U.S. in the AWS auction, T-Mobile USA Pres. Robert Dotson said Fri. in the carrier’s first comments since the auction. At the same time, the carrier will begin rolling out 3G to subscribers next year, making an initial investment of $2.6 billion. T-Mobile officials won’t need more spectrum for the foreseeable future, they said without specifically addressing the 700 MHz auction.
As expected, FCC Chmn. Martin set a vote on the AT&T- BellSouth merger for the Thurs. agenda meeting, though the date could slip. It’s not unusual for major agenda items like the merger to be “pulled at the last minute, for a later vote… [I]t’s even possible for the meeting itself to be moved back,” said analysts at Stifel Nicolaus. But “we believe the process is in its final weeks, not months,” Stifel Nicolaus said in an investor’s note Fri.
Cable operators with $2.37 billion in winning spectrum bids won’t start a wireless provider with nationwide reach, SpectrumCo said -- but will consider testing various services. Those may include mobile video and broadband, analysts have said. “Members of SpectrumCo will fully evaluate all options including possible testing in limited markets… No plans have as yet been finalized,” SpectrumCo said in a release. SpectrumCo, whose cable members are Comcast, Time Warner Cable, Cox and Advance/Newhouse, said the spectrum may be used as part of their wireless joint venture with Sprint Nextel, set to start trials this year in 7 markets. Down payments from winning bidders in FCC auction 66 were due Wed.