FCC Chmn. Powell confirmed Wed. the FCC is considering an order that would establish an auction for H-band spectrum. Powell said he was aware of industry efforts to head off the auction. A group of carriers were at the FCC last week to argue that the use of the spectrum would lead to unacceptable levels of interference.
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.
CTIA said in a filing at the FCC it would support the agency making available a single 20 MHz block to be auctioned on a RSA/MSA basis if the Commission moves forward on a long- pending auction for advanced wireless services. CTIA said it can’t support a Rural Cellular Assn. (RCA) proposal to make several blocks available, but could support offering a single block in a form that may be more attractive to small carriers. Sources say the RSA/MSA level is the smallest the FCC appears willing to consider as it takes up an auction of spectrum in the 1.7 GHz and 2.1 GHz bands. CTIA said taking this step “would be an appropriate means of encouraging effective small and rural carrier participation in the AWS auction.” CTIA initially opposed a RCA petition seeking more spectrum for smaller license areas. “RCA has been trying to persuade CTIA to support more spectrum for small license areas,” David Nace, RCA gen. counsel told us Tues. “We think it’s a step in the right direction.” CTIA and RCA have found common areas of agreement on auction issues in recent days. Last week, RCA said, in support of CTIA that while it didn’t necessarily support a complete end to all set-asides for designated entities it views bid credits as a more effective mechanism for making sure small carriers are victorious in spectrum auctions.
Wireless carriers told the FCC “ample” evidence exists for the Commission to launch a rulemaking on Auction 58 to decide whether to change the rules giving designated entities (DEs) a set-aside for some licenses. But DEs disagreed, saying the numbers demonstrate they would win few licenses at auction without the set-aside.
Wireless carriers descended on the FCC last week for a series of meetings to point to potential major interference problems that could be caused to other PCS communications if the H-block spectrum is made available at auction (CD July 21 p2). The group argued that “nothing can be done” that would eliminate interference risks. Carrier sources said they sought the meetings only after it became clear that the FCC may look at auctioning H-block spectrum in an item at its Sept. meeting.
The Rural Cellular Assn. is breaking with other rural groups to urge an end to set-asides for designated entities (DEs), arguing that bidding credits are a much more effective means of spurring bids by small carriers. RCA said the FCC should undertake a rulemaking to explore different levels of bidding credits as well as smaller geographic areas for licenses.
The Wireless Communications Assn. is considering a petition for reconsideration following release Thurs. of FCC’s order setting new rules for the 2495-2690 MHz band. Among WCA’s concerns is that a bandwidth sharing plan for the 2496-2500 MHz band could cause enough anxiety among investors to negate in part FCC efforts to spur more investment in wireless broadband. The fight pits WCA against GlobalStar, main user of the space.
In what’s shaping up as the next potential big spectrum fight, the FCC is contemplating a release at its Sept. meeting or earlier of a rulemaking clearing the way for the auction of H-block spectrum, sources told us Tues. The FCC is expected both to reallocate the spectrum and propose service rules to make an auction possible.
The number of former NextWave licenses sold to Cingular or retained by NextWave and already off the market dictates that the FCC must not change auction rules so that fewer licenses will be made available to designated entities (DE) in upcoming Auction 58, DE Council Tree told the FCC in a filing.
The FCC agreed 5-0 Thurs., after months of arguments, to adopt an 800 MHz rebanding plan, which will give Nextel much of what it wanted, including 10 MHz of spectrum in the valuable 1.9 GHz band. But Nextel may have to pay more than $3 billion, beyond the spectrum it agreed to contribute. The FCC is also requiring that Nextel sign a letter of credit for $2.5 billion to cover all public safety transition costs.
The deadline for submitting bids in NextWave’s private auction, scheduled for Thurs., came and went Tues. without a decision from the FCC that Nextel would get the 1.9 GHz spectrum it has been seeking. That was a potentially negative development for Nextel, which had pushed for a decision prior to the deadline. The FCC last week put a Nextel order on its agenda for Thurs.’s Commission meeting.