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CMRS CARRIERS COULD OFFER FIXED SERVICES UNDER FCC PROPOSAL

WASHINGTON-While enforcing rules to move microwave users off new broadband spectrum, federal regulators have proposed letting commercial carriers offer wireless local loop and other fixed services.

The extent to which cellular, specialized mobile radio and personal communications services can offer fixed services has created uncertainty and confusion for both the wireless telecommunications industry and the Federal Communications Commission in recent months.

“Our original purpose in limiting this spectrum to mobile and related services was to ensure that adequate spectrum was available for these services, which cannot feasibly be provided at higher frequencies,” said the FCC, but “it appears that the characterization of permissible use in our rules may be inhibiting carriers intending to use radio links to replace existing wireline service or to rural or less attractive areas not being adequately served by wireline providers.”

The initiative, aimed at clarifying the issue and part of a pro-competitive deregulatory effort to allow flexible use of the airwaves, could muddy the waters.

PCS operators and microwave licensees have been fighting for months over how much fixed users should be paid to move from the 2 GHz band, which new digital pocket telephone firms now occupy, to higher frequencies.

The FCC’s Jan. 24 proposal, though primarily intended to promote local loop competition, could give PCS companies the ability to provide precisely the same kind of fixed services used by utilities, railroads, local governments, public safety agencies and others forced to leave the 2 GHz band.

In fact, an FCC staffer said one reason the issue was pulled from last October’s open meeting agenda was because of differences over how broad or narrow the definition of fixed service should be.

“What eventual use is made of the band doesn’t bother me so much as long as the commission follows through on its promise to effect a graceful migration from the 2 GHz band and to provide sufficient replacement spectrum,” said Jeffrey Sheldon, general counsel of the Utilities Telecommunications Council.

The FCC recommended wireless local loop be defined as “the path between the subscriber and the first point of switching or aggregation of traffic,” but asked for public comment by Feb. 26 whether that definition is adequate.

The agency also asked for input on how fixed uses should be regulated without discouraging wireless operators from offering packages of mobile and fixed services to consumers.

“It is in the public interest to allow CMRS [commercial mobile radio service] providers some regulatory latitude to encourage them to develop innovative wireless local loop services that will provide true competition to incumbent telephone providers,” said Rachelle Chong, a Republican FCC commissioner.

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