The FCC Wed. backed away, at least in part, from an order demanding blind bids in an advanced wireless services auction set to start in June. Blind bidding, strongly backed by FCC Chief Economist Leslie Marx, ran into a firestorm of protests from carriers large and small. Nonetheless, as the auction has neared, the FCC has seemed adamant on blind bids.
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.
The U.K. Office of Communications (Ofcom) proposed to auction a wireless telegraphy license for the spectrum band 872-876 MHz paired with 917-921 MHz. The frequencies aren’t licensed for use except for some non-operational testing and development purposes. If interested parties approve, Ofcom intends in early 2007 to offer one U.K. license for an initial period of 15 years, renewable indefinitely. The license will be tradeable and technology- and application- neutral, and will include transmission rights and technical conditions designed to protect adjacent band users from harmful interference, Ofcom said Tues. The auction will involve a single-round sealed-bid process with a minimum bid of Pounds 50,000 ($87,000).
LAS VEGAS -- Cingular is still scrutinizing markets where it may bid in the June advanced wireless services (AWS) auction -- but with its 58 MHz of spectrum on average in top markets across the U.S. has little need for fill-in spectrum, the top carrier officials said last week. It also disclosed that more than a year after completing its merger with AT&T Wireless, its integration of the 2 networks in cities where they overlapped is only about 1/2 done.
The FCC should “stand up to pressure” and adopt spectrum auction rules keeping bidder identities secret and barring big wireless carriers from teaming up with designated entities to get bidding credits, consumer groups said. A proposal to make such changes in this summer’s Advanced Wireless Service (AWS) auction is on the FCC’s open agenda meeting Wed. In an April 5 letter to FCC Chmn. Martin, groups said leaving the auction rules as-is could cost the U.S. $10 billion in lost revenue. “CEOs of major wireless companies have lobbied the FCC nonstop to ignore the evidence and do nothing,” said an attorney for the National Hispanic Media Coalition. Other signers included the Media Access Project, Common Cause, the Consumer Federation of America, Consumers Union, Free Press, the New America Foundation and US PIRG.
Sprint-Nextel may pursue spectrum in the June advanced wireless services (AWS) auction but won’t decide until time nears for short-form bid applications, Senior Vp Bob Foosaner said. The combined firm’s spectrum position is so strong the critical issue isn’t licenses, Foosaner said. He also fired back at critics who claim Nextel overpaid for spectrum as part of the 800 MHz rebanding, and he questioned the likelihood of significant telecom legislation passing this year.
A group appointed by the FCC to deal with minority issues urged the agency not to change designated entity (DE) rules for spectrum auctions without considering the impact on small minority companies with revenue as low as $125 million. Two subcommittees of the Advisory Committee on Diversity urged the Commission to convene the full committee before acting on the DE rules. The group fears the agency will expand a proposed change in DE rules to include smaller companies, it said. The FCC originally eyed banning competitive bidding preferences for DEs with “material relationships” with large in-region incumbent wireless service providers, the subcommittees said. “It appears that, as part of that proceeding, the Commission is considering the adoption of a much broader rule that would prohibit the award of competitive bidding preferences to DEs having material investment from or relationships with any entity with revenue in excess of $125 million,” the committee said. In a draft resolution sent to the full committee, the smaller bodies said the FCC shouldn’t extend the prohibition beyond the largest wireless carriers because “the wireless industry is extremely capital-intensive and technically complex” and DEs need access to “sources of capital and expertise to have any chance of acquiring licenses and successfully providing service.” Entities with revenue in excess of $125 million are the most logical sources of investment and experience, the draft said.
Disney showed off its newest mobile phone service at CTIA. The service, which follows Mobile ESPN, will be available nationwide in June, the company said. The company will offer a package of exclusive Disney content to subscribers, including access to Radio Disney, content from Disney Zone and Vault Disney. Disney will sell customizable “themes” for the phones that will include ringtones and wallpapers, the company said. The service will let parents control the numbers their kids can dial and receive calls from. It will also allow parents to track their kids’ locations using GPS technology, Disney said.
LAS VEGAS -- Verizon Wireless is unlikely to pursue spectrum in June’s advanced wireless services (AWS) auction and 700 MHz spectrum when it becomes available, CEO Denny Strigl said. Verizon Wireless will decide over the next few weeks which spectrum to pursue, he said during a meeting with reporters at the CTIA convention here.
LAS VEGAS -- The FCC means to make sure wireless broadband services “are subject to the same kind of lighter regulatory touch” already provided “cable services and DSL services,” Chmn. Martin said in a keynote at CTIA’s convention, which opened here Wed. Along with making progress on wireless E-911 and public safety and the upcoming auctions topped his wireless agenda, he said.
The April 12 FCC open meeting will focus on wireless issues, including procedures for a June 29 auction of advanced wireless services (AWS) licenses. That item is expected to require a vote at the meeting on the controversial issue of whether bidding should be secret. FCC Chmn. Martin said he would seek a Commission vote on the public notice (CD March 24 p3), though such documents usually are instituted by staff without commissioners voting. The AWS notice will include filing requirements, minimum open bids and other procedures. Also on the agenda for votes: (1) An order addressing a petition by environmentalists concerned about bird deaths at communications towers. The petition seeks changes in siting regulations. (2) An order setting procedures for relocating Broadband Radio Service and Fixed Microwave Service operations, including cost sharing obligations, in the 2.1 GHz band “as well as addressing a related petition for reconsideration.” (3) An order on spectrum sharing among incumbent and future services in the 2495-2500 MHz band. The agency also will consider an order on related changes to the service rules for broadband radio service and educational broadband service (EBS). The Wireless Communications Assn. and Catholic TV Network told the FCC Wed. they've reached agreement on part of this item involving term limits for EBS spectrum leases. The deal would set a maximum 30-year term but on the 15th year and every 5 years after that EBS licensees would have “an opportunity to access additional services and equipment…”