Subject: [NEXTEL-1] FCC Reassigns 30-MHz of Spectrum for Advanced Wireless Services

From: Marcel <[email-masked]>
Date: Fri, 31 Jan 2003 18:18:26 -0500

FCC Reassigns 30-MHz of Spectrum for Advanced Wireless Services

By Mark Long -- e-inSITE, 1/30/2003

The Federal Communications Commission (FCC) has announced that 30 MHz
of spectrum previously allocated to Mobile Satellite Service (MSS) operators
has been reassigned for use by providers of advanced wireless services such
as 3G.  In a Third Report and Order issued earlier today, the
Commission reassigned the 1990-2000 MHz, 2020-2025 MHz, and 2165-2180
MHz bands for fixed and mobile wireless service applications.

During the review process that lead up to today's announcement, the FCC
concluded that the Mobile Satellite Service (MSS) operators who were
previously authorized to operate in the 1990-2025 MHz and 2165-2200 MHz
bands would be able to continue to operate with a reduced share of the 2 GHz
spectrum. Today's FCC action retains 40 MHz of spectrum in the 2000-2020
MHz and 2180-2200 MHz bands for their continued use.

"Today the Commission releases a family of orders that grants flexibility to
licensees that provide substantial satellite service, strictly enforces our satellite
milestone policies, and reallocates 30 MHz of spectrum for terrestrial use, said
Chairman Michael K. Powell in a prepared statement. "Taken together, these
orders reflect the Commission's commitment to vigorously guard the public's
spectrum resource and to ensure that resource is used efficiently in the public
interest.  In addition, these orders will further increase the portfolio of
spectrum-based services emerging as viable competitors in the voice and
broadband marketplace.

A Carrot and Stick Approach

In arriving at its decision, the Commission elected to placate MSS providers by
offering them the option of using their remaining spectrum assignments on the
ground as well as in space.

"In the end, I concluded that granting additional rights to existing satellite
licensees best protected those services from harmful interference and ensured
[that] the spectrum currently allocated to satellite services in these three bands
was fully utilized," stated Powell.

While noting that satellite-based communication systems present unique
challenges that often involve a tremendous lag time between the filing of an
application and the actual provision of service, Powell said that both the time
and regulatory resources involved "...strongly counsel in favor of policies that
ensure satellite spectrum goes to providers committed to using the spectrum
promptly. Strict enforcement of milestones ensures this result.  We will
continue to be vigilant that satellite licensees fulfill their obligations to build
systems -- or the spectrum will be returned and re-licensed."

Powell also reports that the Commission is currently re-examining its satellite
policies in a broader context to determine whether its processes unduly hinder
market access, and thereby act to limit competition.

"Our current system takes much too long and makes the challenges
associated with launching and operating a satellite service all the more
complex," continued the FCC Chairman. "Satellite providers should succeed or
fail in the marketplace on their own merits -- not to have their business plans
atrophy on the shelf while the FCC takes years to issue a license. We can and
must do better."

CTIA Complains of Pretzel Logic

Cellular Telecommunications & Internet Association (CTIA) president and CEO
Tom Wheeler expressed disappointment with today's FCC decision to allow
MSS companies to provide terrestrial wireless service in spectrum previously
reserved for satellite offerings. Wheeler reports that the CTIA will not only likely
file with the FCC for a reconsideration of the plan but also may launch other
legal challenges. In other respects, however, the CTIA president and CEO
praised the Commission  for its decision to reallocate 30 MHz of MSS
spectrum for advanced wireless services.

"This is a split decision for consumers," commented Wheeler in a prepared
statement. "Consumers should welcome the FCC's decision to take spectrum
away from satellite licensees who could not even make it over the first hurdle of
deploying their satellites. But, the FCC's decision to give failing satellite
companies new technical rights is a gigantic giveaway that will cost taxpayers
billions of dollars."

"In filings at the FCC, satellite companies have claimed they need land-based
cell towers in order to compete because consumers have not found
satellite-only offerings attractive," added Wheeler. "In the same breath they
claim these new technical rights will not help subsidize their satellite
operations. The FCC seems bewitched by this twisted logic. If free spectrum is
the FCC's answer, then the Commission should refund the billions it took from
wireless carriers who played by the rules, instead of using pretzel logic to twist
the rules."

The FCC's Dissenting Voice

Commissioner Michael J. Copps said that he was all for the reallocation of
spectrum for advanced wireless serviced but thought that it should come at the
expense of MSS operators.

"The United States led the fight to win globally harmonized MSS spectrum in
1992," Copps explained. "Soon thereafter, however, the Commission
abandoned the plan to have a world-wide MSS band and allocated 10 MHz to
PCS. This reduced by one-third the globally harmonized spectrum available to
fledgling MSS operators.... Now we reallocate 50 percent more of the remaining
globally harmonized MSS spectrum to AWS, leaving MSS licensees with only
a third of what was originally fought for by U.S. negotiators.  This will raise
costs of satellite design and construction, make trans-national interference
coordination more difficult, especially where satellite and terrestrial licensees
must coordinate, and may further erode U.S. credibility internationally when we
next fight for harmonized spectrum."

But in the end Commissioner Jonathan S. Adelstein sided with Powell.

"My decision to support the shift of our domestic 2 GHz Mobile Satellite
Services (MSS) allocation is not made lightly," said Adelstein in a statement. "I
recognize the hard work of Commission staff and industry personnel at the
1992 World Administrative Radio Conference (and at subsequent conferences)
in securing a global allocation of MSS spectrum in the 2 GHz band.  "However,
over 10 years later, it now appears that our domestic economy and
communications marketplace is better served by a shift in our country's 2 GHz
MSS allocation."

The Next Best Thing

Earlier today, the FCC also released a Third Notice of Proposed Rulemaking
under which the Commission is seeking further industry comment on proposed
uses for the 1910-1920 MHz band, which has been allocated for UPCS
asynchronous data applications but is currently unused. The Commission
believes that this band, or a portion thereof, could be paired with the 1990-2000
MHz band to support the further development of 3G and other advanced
wireless services. Alternatively, the spectrum could be reallocated in support of
other wireless service licensees.

Although the FCC has decided that the 1920-1930 MHz band will be retained
for use by future UPCS services, the Commission is seeking comment as to
whether it should provide for additional flexibility in that band, as well as any
additional spectrum that may be retained for UPCS use in the 1910-1920 MHz
band.

The Commission has also set its sights on spectrum in the 2155-2160/62 MHz
band that is currently allocated for use by the Multipoint Distribution Service
(MDS) providers, together with the 2160-2165 MHz band that the FCC has
already identified as available for use by emerging technology applications. But
before these frequencies can be reallocated the Commission must come up
with a suitable spectrum relocation plan for those MDS licensees who are
currently operating in the 2150-2160/62 MHz band.

http://www.e-insite.net/eb-mag/index.asp?layout=article&articleid=CA274281&spacedesc=news

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