FCC to overhaul D Block approach: New legislation would fund PSST

The Federal Communications Commission today launched a wide-ranging proceeding to revamp D-Block rules, an effort that will not only examine changes to the national public safety/commercial license left stranded in the 700 MHz auction but also consider whether the public-private partnership approach should be retained.
“While the results of the last auction will help inform our decision with respect to the D Block going forward, our decision must also be informed by the continuing need for a truly nationwide interoperable broadband network for public-safety agencies to use during times of emergency,” said FCC Chairman Kevin Martin. “In the absence of the financial resources for public safety to build out their own network, however, I believe we should continue to try to explore ways in which we can help facilitate a tool to achieve a nationwide interoperable public-safety network.”
Shortly after the agency’s 5-0 vote on the D Block, Rep. Jane Harman (D-Calif.) introduced legislation to authorize $4 million to begin funding the Public Safety Spectrum Trust Corp. – the 700 MHz public-safety broadband licensee – that would partner with a winning commercial D-Block bidder under the shared wireless broadband network model.
“Congress should be involved in this process and ensure that the public-safety broadband licensee, the not-for-profit entity representing public safety in this partnership, is an independent and effective voice for first responders,” said Harman, chairman of the House Homeland Security subcommittee on intelligence, information sharing and terrorism risk assessment.
In addition to a funding component designed to help the PSST defray administrative and operational costs, the Harman bill includes provisions that could indirectly shape the realignment of D-Block rules at the FCC.
“My legislation includes requirements to ensure transparency and promote vigorous oversight by both Congress and the FCC,” Harman stated. “It prohibits the public-safety broadband licensee from accepting third-party funds after receiving FCC grants and from using government funding to repay outstanding debts. The bill also mandates strict reporting requirements to the FCC and Congress.”
To date, the PSST has been funded by loans arranged by its advisor – Cyren Call Communications Corp. – and financed through the firm’s venture capital investors. The FCC investigated allegations surrounding the D Block’s auction failure, but concluded there was no wrongdoing among key stakeholders. Congress continues to probe the matter.
PSST Chairman Harlin McEwen said he “remains hopeful that the comment period ahead will result in rules bringing about the right partner to build a shared public safety/commercial network.”
Commissioner Michael Copps, one of two Democrats on the GOP-led FCC, said it is essential that the agency draw on technical, public-safety and private-sector expertise to improve the chances of a successful D-Block re-action.
“After all, the elephant in the room is that we need to make sure that our rules allow the commercial partner a reasonable opportunity to turn a profit in the long-term, or else we will never find a bidder and the network will go un-built,” Copps stated. “We also need to understand if innovative technologies – like multi-mode satellite handsets, or dividing the commercial block into two or more blocks with varying degrees of population density – can improve the ability of commercial licensees to serve their public-safety partners.”
The license’s $1.3 billion reserve price, stringent build-out requirements, and other elements are among the reasons cited for the D Block’s demise in the 700 MHz auction.
As such, the FCC is seeking comment on such issues as:
–The rules governing public-safety priority access to the network during emergencies
–The performance requirements and license term
–Whether to license the D Block and public-safety broadband spectrum on a nationwide or regional basis
–The various fees associated with the shared network
–Whether or not it would be appropriate for the public-safety broadband licensee or any of its agents, advisors, or service providers to serve as a mobile virtual network operator to manage access and use of the 700 MHz D Block of spectrum by first responders
–The process for the D Block licensee and the public safety broadband licensee to negotiate a network sharing agreement
–The potential for requirements that the public safety broadband licensee be a non-profit organization and that no for-profit entities, apart from certain outside advisors or counsel, be involved
–And auction-related issues such as whether to restrict auction participation and how to determine a reserve price.