FCC Order Opening C-Band Seen in 2019, Maybe Not Until Second Half

Most commenters welcome moves to open the 3.4-4.2 GHz C-band for 5G, as some question the FCC’s proposed market-based approach to making licenses available. Questions remain how to create a smooth glide path there for satellite operators. Tuesday, some said the FCC appears to want to move quickly on the band, but final rules are unlikely until late 2019.

Commissioner Mike O'Rielly told us FCC action could conceivably come in "April-June." Given satellite operators' commitments to protect legacy customers, he didn't foresee a need for technical studies or other steps that could significantly delay an order. In July, commissioners approved 4-0 an NPRM and order addressing the C-band, considered key mid-band spectrum for 5G.

“There will be a big push to get these rules done quickly but I also think that the complexities here are not insignificant,” said Kalpak Gude, president of the Dynamic Spectrum Alliance. “The issue of windfall is going to grow, no matter how much the satellite folks try and dodge it. The mythical race to 5G will run up against the question of massive giveaways.” Satellite Industry Association President Tom Stroup emailed that while most parties would like to see the issues addressed early next year, "given the complexity of the issues and the large number of filings the Commission staff has lots of work to do to have an order ready before mid-year."

“Late 2019 is optimistic for a final order that could trigger relocation of earth stations in the lower portion of the band,” emailed Michael Calabrese, director of the Wireless Future Program at New America. “Even if the Commission decides some form of private auction is lawful, reaching a final order will take far longer than some claim. The FCC will ultimately need a [Future] NPRM or other means to resolve many of the same issues it does for a public auction, including the process, license sizes, eligibility and aggregation.”

Some of the biggest debate in filings was on how to make the spectrum available -- through auction or market-based mechanism. Filings were through Tuesday in docket 18-122.

Momentum Debated

Intelsat is "pleased with the momentum" of the proceeding, CEO Stephen Spengler said in a call with analysts Tuesday. He said the timing is ultimately the FCC's decision. He said clearing part of the 3.7-4.2 GHz band for terrestrial 5G service will require putting up more satellites (see 1810300054).

Mid-2020 is more likely, ex-officials said. A former spectrum official said “even without any unanticipated delays, late 2019 would be lightning speed” in what is a “Goliath” of a proceeding.

Intel, Intelsat and SES Americom said a market-based approach remains the optimal approach for making spectrum available quickly. It would “bring highly valuable mid-band spectrum to market voluntarily, in an efficient and expeditious manner, and with minimal Commission administration,” the three said. The approach “enjoys cross-industry support and is a win-win-win for consumers, terrestrial 5G interests and Fixed-Satellite Service operators,” they said.

Satellite companies' recently formed C-Band Alliance said a market-based approach “represents the fastest way to repurpose C-band Downlink spectrum for terrestrial mobile services." The group projects that “repurposing up to 200 MHz can be completed within 18-36 months of a final Commission order.”

“The market-based approach described in the NPRM is severely flawed,” said the Public Interest Spectrum Coalition. “A private auction or negotiated sale controlled by a few incumbent and foreign-based companies, and with no return of the anticipated proceeds of $10 to $30 billion or more to the Treasury, amounts to a massive and needless giveaway of public assets.” Such private deals would be “an end-run around Section 309(j) of the Communications Act in clear contravention of Congressional intent and precedent,” PISC said.

Cable, Carriers Comment

T-Mobile said the better approach is an incentive auction, similar in some ways to the TV incentive auction. “T-Mobile’s market-based auction would feature multiple phases in which all satellite licensees would be the seller and potential wireless providers would be the buyers,” the carrier said. “Decreasing amounts of spectrum would be made available until the Commission reached a minimum amount of spectrum available for terrestrial networks.” T-Mobile said the Intel-led plan “would only provide assurance that less than one-half of the available spectrum would become available for mobile wireless broadband.”

Whatever the approach, protect C-band downlink spectrum used by cable operators, NCTA asked. If the FCC adopts a market-based approach, require “proponents disclose in detail in their transition plan how they will protect today’s C-band users, including their laboratory and field test results demonstrating that adjacent mobile operations will not cause harmful interference to FSS users,” NCTA said. An “auction design should ensure that earth station operators and other satellite customers may participate directly in mechanisms for determining the socially optimal amount and value of cleared spectrum,” NCTA said.

Nokia said many questions remain about a market-based approach and potential auction. “The major benefit of a private sale proposal is the potential for a speedy transfer of spectrum when compared to the length of time, and regulatory steps likely required to execute a Commission-led public sale,” Nokia commented. “Speed is just one of many factors to consider, and a public auction or other approach may be the better choice if the C-Band Alliance fails to bolster the record on its commitments and rationale.”

Others focused on the need for the FCC to find a way to make the spectrum available for 5G. “The 3.7-4.2 GHz band is the only mid-band spectrum opportunity that has been identified in the United States as potentially suitable for an exclusive-use, flexible-rights, licensed service, with a sufficient amount of spectrum for macro 5G,” Ericsson commented. “In Europe, regulators have declared the 3.4-3.8 GHz band as the first band to address 5G needs,” Cisco said. “Other nations, well beyond Europe, have had mobile allocations in the 3 GHz range for some time and are well positioned to open the 3 GHz range to 5G technologies.”

User Concerns

C-band users continue to have repurposing concerns.

Allowing terrestrial use of C-band needs "a documented, enforceable and fully-funded plan" for accommodating existing users, NAB said as it warned too heavy a focus on reallocating the maximum amount of spectrum could hurt 4K or dynamic range video programming. It and the Satellite Industry Association argued against shared operations between satellite and terrestrial in the band's non-reallocated portion, as that would restrict future operations and likely eliminate or constrain the full-band, full-arc earth station licensing policy.

From emergency alerts distribution to remote broadband, many aspects of C-band fixed satellite service can't be easily filled by other transmission methods or different satellite spectrum, the SIA said. It and the C-Band Alliance argued against point-to-multipoint services in the band and against a permanent prohibition on applications for new C-band earth stations. The alliance -- talking up its plan for satellite operators voluntarily clearing part of the C-band for terrestrial use -- said that approach's advantages include a minimal need for FCC intervention and oversight. It argued against the agency's proposed definition of protected earth station as being overly restrictive. While the coalition has said as much as 200 MHz could likely be cleared (see 1810220053), its comments urged against a minimum spectrum benchmark.

Arguing that satellite networks could be a big component of how 5G gets rolled out, Inmarsat said those networks thus need flexibility in controlling their spectrum that would let them pursue commercial partnerships involving new sharing arrangements. It also said any repurposing of the 3.7-4.2 GHz band needs to protect existing services, especially satellite telemetry, tracking and control in the 4198-4200 MHz band.

"Significant concerns" need addressing before repurposing the 3.7-4.2 GHz band given concerns about what it could do to radio altimeters in 4.2-4.4 GHz band, and the FCC should engage the FAA in assessing the potential for altimeter interference before allowing commercial wireless in the upper part of the 3.7-4.2 GHz band, Aviation Spectrum Resources said. NPR is concerned terrestrial use of C-band could interfere with the low-power C-band downlinks that are the lifeblood of its public radio satellite system and that any terrestrial use needs to accommodate full-band, full-arc earth station operations. It said the C-Band Alliance plan is potentially "the least disruptive option," given satellite company assurances about protecting existing users.

CTIA emphasized other nations are moving ahead, with auctions in the works for mid-band spectrum and China releasing hundreds of megahertz for 5G. The 3 GHz band "is quickly becoming globally harmonized,” CTIA said. “Global harmonization drives robust equipment markets, enables global roaming, and reduces costs for consumers.”

“Millions of rural Americans are counting on the FCC to move forward quickly to promote shared access to mid-band spectrum in rural areas,” said Claude Aiken, president of the Wireless ISP Association.