The United Telecom Council is questioning whether carriers have any interest in 900 MHz spectrum used by utilities and industrial companies that the group represents. UTC and members met with Fred Campbell, FCC Chmn. Martin’s wireless adviser, and Wireless Bureau officials. The FCC in 2005 asked for comments on allowing more flexible use of 896- 901 MHz and 935-940 MHz spectrum. “Marketplace behavior is inconsistent with the previous assumption that there is pent- up carrier demand for auction of 900 MHz spectrum,” UTC said, reporting on the meetings. “The parties emphasized that there is a need for interference protection standards for this frequency band like those adopted for the 851-869 MHz frequency band, to accommodate all users as they move to more advanced, and potentially mutually incompatible, technologies.”
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.
With the AWS auction winding down, bids late Fri. totaled $13.8 billion after round 73. “The AWS auction could end next week based on the lack of activity and an increase in the bidding schedule and we do not expect a material change in the high bids than leading bidders have obtained,” Pali Capital said Fri. in a research report. “Top bidders have not seen a material change in their high bids for the past 15 rounds. After 6 rounds yesterday, there was virtually no movement in the aggregate bid amount of $13.7 billion.” Pali calculations put top bidder T-Mobile as poised to pay $0.63 per MHz per POP for licensees, based on bids of $4.2 billion. Verizon Wireless, through Cellco, will pay $0.74 per MHz per POP and $2.8 billion total, followed by Spectrum Co. ($0.45, $2.3 billion)) and MetroPCS ($0.97, $1.4 billion).
The Wireless Bureau seeks comment on rules for a coming auction of 64 licenses in the 1392-1395 MHz and 1432-1435 MHz bands, set for 2007. Auction No. 69 is comparatively small, offering licenses useful in fixed or mobile services such as wireless Internet and advanced 2-way mobile and paging. One source said the spectrum is essentially “scraps.” The FCC, as in the AWS auction, sought comment on whether to follow the traditional simultaneous multiple-round (SMR) format. The FCC again is eyeing blind bids, with winners unknown the auction ends. “In particular, commenters should specifically address whether technological considerations or the likely level of competition in this auction weighs in favor of or against limiting the disclosure of information on bidder interests and identities relative to most past Commission spectrum auctions,” the bureau said. Comments due Sept. 11, replies 7 days later.
A company owned by Mario Gabelli appears poised to win 3 licenses in the advanced wireless services (AWS) auction, which grinds along in its 3rd week. In July, Comr. Adelstein said the N.Y. financier should have been barred from this and future auctions (CD July 12 p1). Through round 44 late Thurs., total bids were $13.14 billion. No bids have been made on 12% of the licenses.
Total bids in the FCC’s advanced wireless services auction hit $12.88 billion in round 40 late Wed. While bidders continued to compete for smaller licenses, action overall remained slow. Overall bids increased by $68,282,000 (0.54%) in round 39 and $68,462,000 (0.53%) in round 40. Cricket entered a high bid of $302.5 million late Wed, for a license in N.Y. and Long Island - the play of the day. T- Mobile remained in the hunt, making provisionally winning bids in such markets as Tampa-St. Petersburg and Seattle- Tacoma. AWS Wireless added nearly 30 licenses in round 39 alone. Also making a strong showing for the day were Red Rock Spectrum, SpectrumCo and Cingular, which was active in round 40.
Designated entities (DEs) are playing a minuscule role in the advanced wireless services (AWS) auction as it enters its later stages. By value, only about 6% of winning bids were by DEs, with a large bid by DE Denali for one license accounting for almost half that. Through round 35 late Tues., total bids stood at $12.5 billion. Bids have been rising slowly -- just 0.69% for the round. To speed action, the FCC required Mon. that participants bid 95%, not 80%, of their bidding credits in opening stages -- forcing DEs to bid or shed eligibility.
Brazil’s president ordered Communications Minister Helio Costa to defy regulator Antel and change the rules of an auction for WiMAX spectrum licenses in the 3.5 GHz and 10 GHz bands. Last week, Antel rejected a request by Costa to delay the Sept. 18 auction to amend the rules. Brazil’s main fixed-line companies have complained that the proposed rules exclude them from licenses in their existing operating areas, and say the rules sharply curb their capacity to offer WiMAX wireless broadband services. Costa also wants to reserve at least one frequency for the govt.’s digital inclusion program and make license holders provide coverage to cities large and small. The Communications Ministry wants to change the bidding rules before Aug. 24. This isn’t the first time the ministry has intervened in a decision within the Brazilian regulator’s authority.
The FCC should auction educational broadband service (EBS) white spaces spectrum well before 2010, when a sale is scheduled, the Wireless Communications Assn. (WCA) and others said in oppositions to petitions for reconsideration filed as part of that longstanding debate. Allies of WCA include the WiMAX Forum, NextWave Broadband and Sprint Nextel. They're opposed by the Catholic TV Network and National ITFS Assn., which urged the agency to proceed with caution.
NENA urged the FCC to seek comment on Cyren Call’s proposal to dedicate 30 MHz of contiguous 700 MHz spectrum to public safety for wireless broadband. NENA also asked Congress to study the proposal. The NENA resolution follows an Assn. of Public Safety Communications Officials de facto endorsement of the Cyren Call plan (CD Aug 11 p7). Cyren Call founder Morgan O'Brien has made gaining these public safety groups’ support a priority. Carriers want the spectrum auctioned and have opposed the Cyren Call proposal. Quick action is critical, NENA said in a statement. “NENA appreciates the innovative approach and the significant potential benefits to the public safety community of this plan,” NENA said: “We also appreciate the timing of this proposal. Our nation has a one-time opportunity to take advantage of the clearance of a nationwide block of 30 MHz of frequencies in the 700 MHz spectrum band… We will lose a tremendous opportunity to improve public safety through improved interoperability if a debate is not initiated to license this spectrum to public safety for a nationwide broadband network before this spectrum is auctioned off and lost forever.”
Cablevision’s controlling family exited the FCC’s AWS auction last week. Analysts said the Dolans couldn’t afford spectrum that a rival consortium is bidding for. Dolan Family Holdings had been expected to acquire spectrum for Cablevision to use to sell wireless services over home IP networks (CD Aug 10 p9). Comcast-led SpectrumCo, pursuing similar ends, had the highest bid of $468.2 million in Round 26 for AWS Block B spectrum in the N.Y. area. The Dolans bid on the same block until Round 19, with a high offer of $390.1 million. Dolan Family Holdings dropped out in Round 21. “They were limited in terms of how high they could go,” Miller Tabak’s David Joyce told us: “Price is what forced them to drop out, the same as [with] the Echostar-DirecTV consortium.” Janco analyst Matthew Harrigan said SpectrumCo will likely keep bidding on the N.Y. block. - JM