Subject: [NEXTEL-1] FCC Rolls Out New Rules For MMDS, ITFS

From: NEXTEL-1
Date: Thu, 10 Jun 2004 19:32:57 -0400

FCC Rolls Out New Rules For MMDS, ITFS
BY MARK ROCKWELL
JUNE 10, 2004

WASHINGTON -- The FCC moved to "transform" old MMDS and Industrial
Television Fixed Service (ITFS) spectrum into a hotbed of wireless
broadband services today by outlining a new set of rules to make
spectrum use there more flexible.
Those rules, however, were leavened with caution by regulators and
wireless broadband service providers.

The FCC's new rules create a new class of providers within the 2490-2690
MHz band. The rules eliminate the mixed or "interleaved" ITFS and MMDS
licensee spectrum there now with specific segments. Those two segments
are aimed at high-power services (like 1-way video transmission) and
low-power services (like 2-way fixed and mobile broadband). By grouping
high- and low-power users separately, according to the FCC, interference
is reduced. The commission hopes that eliminating the interference that
has plagued ITFS and MMDS services will spur development of "low-power,
cellularized broadband operations." The rules optimistically dub old
MMDS or MDS services "Broadband Radio Services (BRS)."
All existing MMDS and ITFS licensees are grandfathered under the new
rules and will retain their licenses and have been given a 3-year grace
period to transition to the new rules. The FCC is investigating new
auction procedures it could implement in the coming years for new
entrants interested in the spectrum.

The new rules also expand the old MMDS-ITFS band by adding on five MHz
of spectrum below 2500 MHz, to "provide room for future relocation of
MDS channels 1 and 2 -- presently in the 2.4 GHz band."

That allocation has some wireless data organizations a little concerned.
The Wireless Communications Association (WCA) had told the FCC that six
MHz of spectrum would be needed for the channel 1 and 2 transition, or
companies moving into the spectrum could find it cost-prohibited if they
had to relocate the channels in their markets.

The FCC said existing ITFS license qualifications -- which limit bidding
eligibility to "qualified educational institutions" -- would remain
under the new band plan, which was a nod to keep the traditional
educational ownership of the spectrum the same. Those entities could,
however, lease spectrum to BRS providers.

The order also sought to simplify licensing rules to use the spectrum,
but some commissioners warned that the rules could make life difficult
for smaller providers.  The new rules specify that licensees must
license for a geographic region of major economic area (MEA) instead of
more localized licenses.

Although Commissioner Jonathan Adelstein said he was pleased with the
commission's actions today, he was "disappointed, though, that the order
moves forward with a transition process that is based on major economic
areas. The BRS and ITFS services are local services, and I believe that
broadband development for the foreseeable future will be rolled out on a
relatively localized basis. I am concerned that the obligation to
transition an entire MEA will make it exceedingly difficult for
proponents to effectuate transitions in their particular area," he said.

http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=3&pubdate=06/10/04

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