5G FNPRM Clears FCC With Commissioner Rift Over Auction Cap
Commissioners were in lockstep Thursday as they approved a high-band Further NPRM, though there was a party-line rift over the pre-auction limit of 1250 MHz of millimeter-wave spectrum that any party can buy at auction. The agency is sending "confusing signals" to industry given those limits and yet not committing to a time frame for making available more spectrum, said sole Democratic Commissioner Jessica Rosenworcel, who dissented in part. Her support of the pre-auction limits was unclear (see 1805250058). The FCC said there was no substantive changes from the draft, but the approved item wasn't released Thursday. Commissioners also Thursday approved a telecom discontinuance streamlining order and six other items (see 1806070021).
The vote is the latest in a slew of steps the agency took to free up spectrum for 5G, including three spectrum frontiers items in as many years, expanded access to ultra-high bands and forthcoming wireless infrastructure rules reforms and spectrum auctions that start in November, Chairman Ajit Pai said. The 5G item finalized rules for the 24 GHz band and sets a band plan for the lower 37 GHz band. It seeks comment on opening the 26 GHz and 42 GHz bands for flexible terrestrial wireless use, sharing mechanisms in the lower 37 GHz band, and earth station siting rules for the 50 GHz band.
The approval got industry accolades. "A pipeline of low-, mid- and high-band spectrum is essential to winning the global race to 5G and spurring new industries, such as the Internet of Things and autonomous vehicles," said CTIA. AT&T said more millimeter wave spectrum available for flexible wireless "will play a key role in deploying 5G networks." 5G startup Starry tweeted the approval “free[s] up more spectrum for innovation and ensur[es] smarter, more advanced technology for today and tomorrow.” Charter Communications said it “lay[s] the foundation for companies like Charter to build a future of ubiquitous connectivity for our customers and successfully compete in the global race to 5G.”
Rosenworcel said pre-auction limits on millimeter wave spectrum might not be necessary, but because of the technical challenges involved in using the spectrum, work is needed to avoid "undue aggregation" of frequencies in new markets given the growth and consolidation in national wireless providers. The FCC is legally obligated, since Section 309(j) of the Communications Act -- covering competitive bidding issues -- mandates disseminating licenses widely, she said.
While backing the pre-auction cap, Commissioner Mike O'Rielly said he's "deeply troubled" by post-auction and secondary market spectrum aggregation review terms in the item, and by the portions that discuss post-auction and secondary market case-by-case spectrum aggregation review. He said there's no evidence of the wireless industry warehousing spectrum, and the 600 GHz incentive auction "clearly debunked" the idea of such foreclosing. "I was hoping that we would finally put an end to this charade," he said. But he said the document removes final hurdles to a 24 GHz band auction and opens the door to an eventual route to a 37 GHz band auction. He hopes to soon see a specific timeline for future auctions, including for the 37 GHz and 39 GHz bands.
O'Rielly and Commissioner Brendan Carr voiced criticisms of lower 37 GHz band rules. O'Rielly said the agency should have reconsidered its previous adoption of nonexclusive sharing in the lower 37 GHz band and opted instead for exclusive licensees sharing with federal incumbents, similar to the approach in the upper 37 GHz band. He voted to concur on the parts on the lower 37 GHz band. Carr said he "might have struck a difference balance" than the agency adopted in 2016, but there hasn't been a big push from stakeholders to revisit the issue.