The FCC is under growing pressure to set a starting date for the 2.5 GHz auction, as the 3.45 GHz auction draws to a close. Analysts said questions remain about who will bid for the spectrum, even given the relatively strong performance of the 3.45 auction, the third-highest in FCC history. Chairwoman Jessica Rosenworcel says the FCC is likely to move forward after the current auction, which is in its final stage (see 2111180047). The agency didn’t comment Friday.
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
The Utilities Technology Council and other utility, public safety and infrastructure groups asked the FCC to stop certifying low-power indoor (LPI) devices in the 6 GHz band because of the alleged interference risk, in a petition posted Wednesday in docket 18-295. The groups filed a separate petition seeking a rulemaking to develop revised rules for the band. Industry officials said the FCC is unlikely to retreat from last year’s 5-0 order allocating 1,200 MHz for sharing with Wi-Fi and other unlicensed use in the band (see 2004230059). Another wild card is a challenge to the rules at the U.S. Court of Appeals for the D.C. Circuit, where the FCC faced tough questions in September oral argument (see 2109170057).
The federal government is increasingly rife with spectrum fiefdoms among agencies, contrary to the FCC's core purpose as a centralized point of spectrum policy decision-making, Commissioner Brendan Carr said Wednesday during the Practicing Law Institute's annual telecom policy and regulation seminar. He said updating memorandums of understanding would help, but ultimately there must be deference to the expert agency making a final decision. Such "devolution" of spectrum policy will be a permanent fixture, but that trend needs some reversing, he said.
Numerous nations have a regulatory focus on the 6 GHz band now, before the band is also center of attention at the 2023 World Radiocommunication Conference (WRC-23), international regulators said Thursday on a Wireless Innovation Forum 2021 panel. Several countries said they're looking at technological means to better allow spectrum sharing, particularly of the 6 GHz band.
While applauding the FCC for requiring covered text provider support of text-to-988 capabilities, mental health and disability communities raised caution flags about the National Suicide Prevention Lifeline having adequate resources come July to handle texting traffic. Commissioners unanimously approved an order Thursday that requires routing of texts sent to 988 to the Lifeline, and setting outer bounds for text message formats to be sent. The final item wasn't released. Also OK'd 4-0 was U.S. market access for French-flagged satellite IoT operator Kineis, as expected (see 2111030008), and a Further NPRM on creating an enhanced competition incentive program aimed at boosting spectrum access by small carriers and tribes (see 2111180071).
A Further NPRM on an enhanced competition incentive program (ECIP) that would benefit small carriers and tribes is expected to be approved Thursday largely as circulated by Chairwoman Jessica Rosenworcel, agency officials told us. One likely change is language requiring staff to prepare a five-year report on the effectiveness of the program, proposed by Commissioner Geoffrey Starks, officials said. In 2019, Starks proposed a similar 10-year, data-focused, look-back report on the high cost USF program.
Congress approved $50 million in the Infrastructure Investment and Jobs Act for a 3.1-3.45 GHz study, to be done by DOD, with the support of NTIA. Carriers had worked behind the scenes to oppose the allocation, which was a top priority of DOD, industry officials said. The legislation would give DOD 21 months to complete the study and says an auction can't start before May 31, 2025. Some say that's too much time and carriers can’t wait almost four years for more mid-band spectrum for 5G.
Communications is seeing "unprecedented amount[s]" of investment, especially as large telcos shift their businesses away from media and back to connectivity, CoBank economist Jeff Johnston reported Wednesday. The citizens broadband radio spectrum auction, by offering particularly small spectrum blocks, opened the door for small rural cities, homeowners' associations, universities and others to build carrier-grade wireless networks rather than rely on national wireless carriers, he said. That should drive big wireless investment, with the North American market topping $2 billion over the next seven years, he said. Bidding activity for broadband network overbuilders could heat up, if Atlantic Broadband's acquisition of WideOpenWest's Ohio assets is a portent of things to come, he said. Telcos' increased investments in fiber could be a competitive challenge for cable, as telcos' copper DSL markets traditionally were easy pickings, he said. "Now that the telcos have woken up and realized the media business isn’t for them, fiber is 'the new black.'"
FAA’s examination of interference risks from C-band deployments could “dramatically slow” 5G buildouts, Alex Gellman, CEO of tower company Vertical Bridge, warned Wednesday. After Verizon and AT&T agreed to put off the start of deployments until January, analysts said last week the risks for the carriers are minimal, if questions are addressed by early 2022 (see 2111040042). Gellman said the agency is now asking a battery of unprecedented questions as it probes potential interference to air safety systems.
Dish Network's DBS subsidiary will offer $4 billion in senior secured notes, using the proceeds to fund the "potential purchase" of wireless spectrum licenses and for the buildout of "wireless infrastructure," said an 8-K Monday. Existing Dish wireless spectrum licenses may be used as collateral for the "intercompany loan," it said. The money potentially will be used to buy licenses in the 3.45 GHz auction, said New Street’s Jonathan Chaplin. “While there can be no guarantee that this is for 3.45 GHz spectrum, the filing specifies the proceeds will be used ‘in order to finance the potential purchase of wireless spectrum licenses and for general corporate purposes, including the buildout of wireless infrastructure,’” he said: “We don’t think Dish needs outside funding for the network right now." He thinks it's "certainly plausible this is for 3.45 GHz spectrum, given the auction’s price has nearly settled (the auction will continue through technical procedures for at least another month, however),” he said.