NTIA sent an aggressive signal Thurs. that the govt. will move quickly to take the steps needed for a planned June 2006 auction of advanced wireless service (AWS) spectrum. The agency sent federal agencies formal notification of their new obligations under the spectrum transition fund bill (HR-5419) signed into law by President Bush on Dec. 23. NTIA asked each affected agency to submit its cost estimates and schedule for relocation by Sept. 15.
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.
Chmn. Powell formally asked the NTIA on Wed. to begin the process that will lead to an auction of 90 MHz of spectrum for advanced wireless services (AWS) in June 2006. Powell also announced the auction of other spectrum at 1432- 1435 MHz in July or Aug. of the same year. Wireless carriers have called on the FCC to act quickly to initiate the AWS auction and were pleased with the Powell letter.
President Bush signed legislation (HR 5419) on Dec. 23 that created a spectrum relocation trust fund that will guarantee that auction revenue can easily be used to move Dept. of Defense and other govt. users off the 1710-1755 MHz parts of the band. The legislation also provides funding for state and local govts. for wireless E911, and resolves accounting issues that had been causing some problems for the universal service fund (USF). Specifically on the last issue, the act provides a one-year exemption from the application of govt. accounting rules to USF programs, including E-rate. The next step on the spectrum trust fund is the transmittal of a letter from the FCC to NTIA asking it to start the process of clearing the spectrum. After the notification is sent, the govt. has 12 months to calculate costs and set a schedule for relocation and must notify the FCC 6 months before an auction.
The FCC is expected to almost immediately notify the NTIA of plans to move forward with an advanced wireless services auction after the spectrum relocation bill (HR- 5419) is signed by President Bush, sources said. Once the notification goes forward the govt. has 12 months to calculate costs and set a schedule for relocation and must notify the FCC 6 months before an actual auction. DoD has indicated it has already completed substantial work on calculating its costs. “I think FCC is ready to signal that they want to move this forward and are ready to proceed with an auction,” said one carrier source. “That’s good news for anyone who wants to see an auction.” T-Mobile CEO Robert Dotson said in a statement that creation of the fund is “an important and very positive advance for the development of the wireless industry in the United States and the provision of expanded advanced wireless services to consumers across America.”
Nextel decided not to participate in PCS Auction 58 starting Jan. 26, the company confirmed Fri. Nextel is among the more spectrum-constrained of the 5 national carriers, with about 28 MHz of spectrum nationally, provided it accepts the FCC 800 MHz rebanding plan. The company was considered likely to bid for licenses in the first major PCS auction in several years.
The FCC approved a hotly contested order to establish an auction that would “let the market” decide whether the air-to-ground (ATG) market will consist of an exclusive or overlapping licenses to offer broadband on commercial airliners. The Commission also launched an investigation of rules governing the use of wireless phones on airliners.
Wireless carriers told the FCC that if it proceeds with an auction of H and J block PCS spectrum, proper controls must be in place to protect other spectrum incumbents. Carriers spelled out the levels of controls they believe are necessary in filings at the FCC in response to a proposed rulemaking on auction service rules.
The FCC is likely to move quickly to schedule a 3G auction within 18 months as called for in HR-5419, which cleared the Senate late Wed. (see separate story). Sources said passage of the bill is a huge development for the wireless industry, which will likely drive down prices in Jan.’s PCS Auction 58 while forcing carriers to lay out their 3G strategies. The legislation also could lay the groundwork for a new way of making more spectrum available at auction.
Four wireless orders, 2 hotly contested, are on the agenda for the FCC’s Dec. 15 meeting: (1) The air-to- ground (ATG) order, developed by the Wireless Bureau, will start the process of an auction of 4 MHz of spectrum for use by passengers on commercial airline flights. The build-up to the order has seen a big fight between AirCell and Boeing, which want the FCC to offer multiple licenses, against Verizon’s Airfone, which favors a single license. (2) The FCC scheduled a vote on an International Bureau order on rules for radio transmitters on ships, known as earth stations on board vessels (ESVs), which has seen a battle between the satellite industry and fixed wireless operators. (3) The Commission will be asked to vote on a report and order by the Office of Engineering & Technology on ultra wideband, which is not very controversial. (4) The Commission will consider a revision of the rules for airborne cellular calls, an item related to the ATG issue. Also on the agenda is a Wireline Bureau item on the universal service support mechanism for rural health care. As expected, the TRO remand order is on the agenda (see story elsewhere).
Whether operators will be allowed to use the same spectrum set aside for air-to-ground (ATG) communications to offer “ancillary” services on the ground has emerged as a major issue on the 8th floor as an ATG order steams forward. The Commission appears to remain on track for a Dec. 15 vote but must address the latest complication.