Wireless Spectrum Auctions

House Telecom Subcommittee ranking Democrat Markey (Mass.) reintroduced legislation Thurs. to create a “spectrum commons” for the public through unlicensed spectrum. The spectrum allocations are designed to provide more room for Wi-Fi, Bluetooth and other wireless protocols, he said. Markey said opening such spectrum would create more spectrum efficiency as well as spur innovation. “The ’spectrum commons’ will also help to propel economic growth and innovations by opening up the airwaves to new marketplace entry by individuals and entities unaffiliated with established network providers, such as incumbent cable, telephone or wireless carriers,” Markey told the House.

As expected, House Telecom Subcommittee Chmn. Upton (R- Mich.) introduced legislation to create a spectrum reallocation trust fund. His proposed Commercial Spectrum Enhancement Act (HR-1320) would create a fund for agencies that relocated spectrum options to a different band or switch to non-spectrum-dependent facilities to transmit telecommunications. The trust fund would be created from spectrum auctions that must total at least 110% of the total estimated relocation expenses, Upton said: “There is a tremendous need for this bill. We must relocate federal government incumbents to comparable spectrum in order to make way for the commercial wireless industry, but the road to relocating government entities to comparable spectrum is unpaved and filled with potholes.” He said. “This legislation would pave that road, establishing procedures to ensure a timely, certain, and privately -- yet fully -- funded relocation of federal incumbent to comparable spectrum.” The Bush Administration included the trust fund in its FY 2004 budget and Upton introduced similar legislation late last year. Co-sponsors include Commerce Committee Chmn. Tauzin (R-La.), Reps. Towns (D-N.Y.), Boucher (D-Va.), Terry (R-Neb.), Green (D-Tex.). Senate Commerce Committee Chmn. McCain (R-Ariz.) has said he will introduce comparable legislation in the Senate.

NEW ORLEANS -- The Bush Administration is close to releasing a proposed bill that would give the FCC authority to set user fees on unauctioned licensed spectrum, which was part of the White House’s budget package for fiscal 2004, NTIA Dir. Nancy Victory said at the CTIA Wireless 2003 show here late Tues. She also said NTIA was “actively” examining whether fees or some other incentives could help increase the efficient use of govt. spectrum, although the agency hadn’t reached any conclusions on whether such a system would be workable. On the same panel, FCC Comrs. Abernathy and Adelstein said the agency’s Spectrum Policy Task Force report, while proposing potentially major changes, wasn’t taking a one-size-fits-all approach to spectrum management.

The FCC Thurs. approved a proposal that teed up far- reaching questions about how Instructional TV Fixed Service (ITFS) spectrum should be regulated, including the controversial issue of whether educators should be able to sell licenses. Less contentious are parts seeking feedback on potential changes that would move away from a broadcast- style regulatory approach for ITFS and Multichannel Multipoint Distribution Service (MMDS) bands to one that would speed deployment of next-generation systems for wireless broadband. The notice looks at expanding access to the spectrum with options such as auctions, provisions for unlicensed uses and rule changes that would put into effect a previous decision to add a mobile allocation to the band.

Senate Commerce Committee Chmn. McCain (R-Ariz.) said he would introduce spectrum reallocation trust fund legislation “in the near future.” He made the announcement during a hearing Thurs. on the future of spectrum policy. His proposal will be designed to pay relocation costs of federal spectrum users that are forced to move to different spectrum.

FCC released filing requirements, minimum opening bids and other procedures for the May 28 auction of licenses in the lower 700 MHz band. In Jan., the Wireless Bureau had pushed the start date of the auction of these licenses from April 16 to May 28 to provide additional time for bidder preparation and planning. The spectrum to be auctioned includes 251 C-block licenses at 710-716 MHz and 740-746 MHz. Also included are 5 D-block licenses at 716-722 MHz, which had been unsold in the lower 700 MHz auction that closed in Sept. Last year, the FCC adopted allocation and service rules for the lower 700 MHz band, reallocating the entire 48 MHz there to fixed and mobile services and retaining the current broadcast allocation for new broadcast services and incumbents during the DTV transition. FCC will hold an auction seminar on April 2, with short form applications due by April 11. Upfront payments are due May 2, with a mock auction set for May 22.

Speaking at an OPASTCO conference in Washington Wed., FCC Comr. Adelstein cautioned state regulators to take “great care” in how they determined whether a competitor was eligible for universal service support. In fact, he said, PUCs ought to take “greater care than some have done in the recent past” because universal service funds were becoming scarce.

Wireless Communications Assn. (WCA) petitioned FCC for reconsideration of order that reallocated spectrum for 3G and other advanced wireless services, including part of 2150-2162 MHz now occupied by Multipoint Distribution Service (MDS) licensees. WCA said order would displace MDS operators without earmarking comparable replacement spectrum and without providing assurance relocation costs would be fully reimbursed. Group said decision is arbitrary and capricious, “evisceration of the rights” MDS licensees bought at auction and “a breach of faith with MDS licensees who have made every effort to cooperate with the Commission in this matter for over 2 years.” WCA petition said order “reaffirms the maxim that no good deed goes unpunished.” WCA and MDS spectrum holders have provided details addressing issues such as availability of comparable replacement spectrum and replacement costs while carriers who seek to displace MDS from band “have offered virtually nothing,” petition said. Order reallocated 2150-2155 MHz to advanced wireless services, which effectively displaced MDS from entire 2150- 2162 MHz band, WCA said. But petition said order deferred considering MDS relocation until future notice of proposed rulemaking, “without indicating how or when those issues might be resolved.” WCA called this “cart before the horse” decision-making that provides no foundation for MDS relocation. In other areas, WCA raised concerns about what it said was lack of explanation about how FCC’s “repossession” of MDS spectrum would square with its auction policy. “It should be obvious that repossession of previously auctioned spectrum without the quid pro quo of comparable replacement spectrum and full reimbursement of relocation costs threatens the integrity of the Commission’s entire auction process,” WCA petition said. Citing “property interests” of incumbent licensees, FCC decision also implicates 5th Amendment’s prohibition against takings of property without just compensation, WCA argued. Among issues raised by petition was that if FCC ultimately decides that no replacement spectrum is available or that it can’t reimburse dislocated MDS licensees, it will have to reverse 2150-2155 MHz reallocation decision, throwing broader 3G spectrum plan into uncertainty.

Critics of 800 MHz rebanding proposal crafted by Nextel and public safety and private wireless groups told FCC this week that Nextel’s pledge of $850 million to help relocate displaced incumbents wasn’t likely to be enough. Comments were due Mon. on revised 800 MHz reconfiguration blueprint designed to help mitigate interference to public safety operators. Wireless carriers, some private wireless operators and others stepped up criticism of revamped joint plan submitted late last year to Commission. But Nextel defended plan, saying $850 million commitment was enough to “fund all reasonable relocation costs.”

Thomas Sugrue, who departed last week as longest-running chief of FCC Wireless Bureau, said that during his tenure he had seen debate shift on Enhanced 911 and had come to new appreciation of potential need for receiver performance standards. His successor, John Muleta, joined FCC Mon. Sugrue told Communications Daily he took “satisfaction” in tremendous growth in wireless services and technologies since he became chief in Dec. 1998. “It has changed the communications landscape in the U.S.,” he said, noting he didn’t take credit for rise: “That reminds me of a rooster taking credit for the sunrise.”