Trade Law Daily is a Warren News publication.
Set for Wednesday Release

FCC NPRM Seeks to Replace S-band ATC Authorization with Terrestrial License, Buildout Conditions

The FCC is expected to propose getting rid of ancillary terrestrial component (ATC) rules for the S-band, potentially allowing Dish Network to provide terrestrial-only services in the 2 GHz spectrum allocated for mobile satellite services, industry and agency officials said of a rulemaking notice likely to be approved Wednesday. The agency will propose buildout conditions and leave related questions about the 2 GHz spectrum and advanced wireless service (AWS) band plans within a notice of inquiry, they said. The NOI will consider the future of the proposed 2 GHz expansion band, at 1695-1710 MHz, primarily used by NOAA, FCC officials said.

Sign up for a free preview to unlock the rest of this article

Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

The NTIA and FCC are already looking at the 1695-1710 MHz band, currently assigned on a co-primary basis to the meteorological satellite service, as one of the most promising for broadband. Wireless carriers have been less excited about the band than about 1755-1780 MHz. Unlike the 1755 MHz band, at 1695 MHz the government doesn’t have to contend with as many federal incumbents. The lower band has two dominant uses, for weather balloons and weather satellite downlinks. The rulemaking notice is “pretty much down the middle,” said an FCC official. “I don’t think there will be any surprises.” A commission spokesman had no comment.

The earliest the agency would be able to put in place the new rules for the S-band would probably be late summer, said an industry executive. Agency officials have said they hope to have dealt with the Dish issue by the end of the year (CD March 6 p1). The rulemaking notice is expected to move to give Dish a Part 25 satellite license, meaning the MSS services could continue to operate, and a Part 27 license terrestrial wireless license with buildout conditions. The rulemaking would have largely the same result as the waiver Dish had previously requested, but can help avoid the criticism of the FCC that has accompanied questions about LightSquared, which received a conditional waiver of MSS/ATC rules, said executives. Dish didn’t comment.

It’s unlikely the FCC will propose conditions for Dish to make the S-band spectrum available on a wholesale basis, but it may ask for input on the idea, said Michael Calabrese of the New America Foundation. NAF and other public interest groups have said the FCC should include such a condition to help deal with the step-up in value for the S-band created by allowing for terrestrial-only service. “My guess is the NPRM will propose some substantial buildout requirements and ask if should go further on imposing other conditions like wholesale access and roaming,” he said. “That’s what we will be pushing for” and Calabrese said he hopes to be aligned with smaller carriers, such as members of the Rural Cellular Association.

RCA will probably ask for wholesale conditions, “providing competitive carriers another pathway to 4G,” said President Steven Berry. “Several of our members signed agreements with LightSquared. LightSquared is currently out of the competitive market, but our carriers still need alternative solutions. Allowing competitive carriers access to 40 MHz of paired broadband spectrum would spur 4G deployment and benefit the entire industry, not to mention consumers.”

It remains to be seen how contentious the proceedings will be. On one hand, within the proceeding on Dish’s waiver request, there weren’t any substantial concerns raised beyond the need for a rulemaking process, noted on executive. Also, the item has essentially been “teed up since August,” which may mean a relatively straightforward proceeding, he said. At the same time, not much has proven to be easy in rule changes for spectrum, said a communications lawyer.