Commenters on the Universal Service Fund generally agreed its funding system is unsustainable and in need of changes but disagreed on the solution, in comments posted Friday in docket 21-476 (see 2112220051) as the FCC prepares its report to Congress on the future of USF.
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.
Latest spectrum auction news
Citing the expanded use of telemedicine, FCC commissioners unanimously adopted a Further NPRM seeking comments on changes to the rural healthcare program’s telecom program’s rates determination rules and to the healthcare connect fund’s internal funding caps, during the agency’s monthly meeting Friday (see 2202170031). They also adopted an order requiring Aureon to submit information needed to calculate refunds to its customers, and a $45 million fine against a company that made more than 500,000 robocalls that violate Telephone Consumer Protection Act rules. Chairwoman Jessica Rosenworcel also said the FCC plans a notice of inquiry on receiver standards, which has been before the agency for 20 years.
The FCC and NTIA committed Tuesday to update their 2003 memorandum of understanding, among other ways to improve the two agencies’ coordination on spectrum policy matters amid continued congressional ire over federal infighting on those matters that’s extended into the Biden administration (see 2202030081). The FCC-NTIA agreement is likely to be a main focus of a Wednesday House Communications Subcommittee hearing with NTIA Administrator Alan Davidson, communications officials told us. Lawmakers continue to show interest in pursuing legislation to prevent future policy fracases, though it could be tough to address this year (see 2202070066). NTIA stakeholders will also watch the Wednesday hearing for any signs of lawmakers’ interest in pursuing legislation to revamp the agency (see 2202150075). The hearing will begin at noon EST. It’s House Communications’ first NTIA oversight hearing since 2018 (see 1803060048).
The FCC’s public notice seeking additional comment on rules for a 2.5 GHz auction, the next big 5G auction at the FCC, was seen as a positive by industry officials, but there's a wrinkle. FCC auction authority expires Sept. 30, which means the agency may have to move quickly to do an auction by that date. T-Mobile is still expected to be the biggest player, adding to its already considerable 2.5 GHz holdings.
FCC Chairwoman Jessica Rosenworcel has moved more slowly on wireless issues than expected since being confirmed to another term as a commissioner and designated last year as permanent chairwoman. On Wednesday, the FCC acted on the next steps on a 2.5 GHz auction. But other wireless items haven’t advanced as quickly as some hoped.
The FCC took the next step on the next 5G auction Wednesday, seeking further comment on competitive bidding rules for a 2.5 GHz auction. The FCC imposed a tight deadline, with comments due Feb. 23. Chairwoman Jessica Rosenworcel has been under pressure to announce a start date for the auction, which many see as the lowest of low-hanging fruit ready for FCC action (see 2112100045). The notice asks whether use of “an ascending clock auction format -- a multiple-round auction with bidding for frequency-specific blocks -- would address certain concerns and suggestions raised by commenters with respect to both the single-round and simultaneous multiple-round (SMR) auction formats.” In a notice approved in January 2021, the agency sought comment on both a single-round and traditional SMR format (see 2101130067). Carriers disagreed sharply. T-Mobile and Verizon urged an SMR auction, while AT&T wanted one finished in a single round (see 2105040077). “To date, the Commission has used an ascending clock auction format in situations in which multiple frequency blocks of similar spectrum were offered, where a clock auction could be conducted more efficiently than could an SMR auction with license-by-license bidding,” the FCC said. A footnote cites the 28 GHz and 24 GHz auctions. The notice asks whether upfront payments and bidding eligibility proposed for the auction “remain reasonable and appropriate” under a clock auction format. The FCC said it doesn’t want “further comment on other procedures proposed” last year. Under the proposed approach “the clock price for a license would increase from round to round if more than one bidder indicates demand for that license,” the notice said: “The bidding rounds would continue until, for all licenses -- that is, all categories in all counties -- the number of bidders demanding each license does not exceed one. Once bidding rounds stop, the bidder with demand for a license becomes the winning bidder.” Commissioners approved the initial notice 5-0 during former Chairman Ajit Pai’s last meeting. The Office of Economics and Analytics and Wireless Bureau released the notice without a commissioner vote.
Speakers at the Incompas Policy Summit expressed hope Tuesday that the FCC will act soon to allow use of the 12 GHz band for 5G. Incompas has been a leading member of the 5G for 12 GHz Coalition, which seeks new rules for the band (see 2107080055).
Lawmakers are frustrated that interagency spectrum policy infighting that became endemic during the Trump administration continues to be an issue one year into Joe Biden’s presidency, despite early hopes for a shift (see 2010260001). Some on and off Capitol Hill believe the Biden administration’s handling of the high-profile C-band aviation safety fracas that preceded delays last month in AT&T and Verizon rolling out commercial 5G use on the frequency (see 2201180065) has stirred an increased appetite for enacting a legislative solution. Others want to hold off on legislation for the time being in hopes recently installed NTIA Administrator Alan Davidson, FCC Chairwoman Jessica Rosenworcel and other officials will be able to quickly nip the squabbling.
House Transportation Committee members and witnesses at a Thursday Aviation Subcommittee hearing criticized breakdowns in the federal interagency spectrum coordination process as a primary cause of the C-band aviation safety fracas that preceded delays last month in AT&T and Verizon rolling out commercial 5G use on the frequency (see 2201180065). FAA Administrator Steve Dickson told lawmakers he believes “we are in a much better place than we were” in mid-January, before the wireless carriers and the agency reached agreement to temporarily defer turning on C-band 5G service around some airports. Lawmakers wondered if the situation will deteriorate again when cellular carriers lift those temporary restrictions.
Democratic FCC nominee Gigi Sohn told the FCC Thursday she will, if confirmed, recuse herself during the first three years of her term “from any proceeding before the Commission where retransmission consent or television broadcast copyright is a material issue.” Sohn’s recusal pledge appears to be the result of negotiations with Senate Commerce Committee leaders aimed at securing support from all 14 Democrats before a planned Wednesday panel vote to advance her nomination to the full chamber, lobbyists told us. Some panel Republicans pressed for concessions from Sohn over ethics concerns about her role as a board member for Locast operator Sports Fans Coalition (see 2201130071).