Policy: Net neutrality, 600 MHz spectrum auction rules set for FCC meeting

Net neutrality and spectrum auctions continue to dominate telecom-related policy news as the Federal Communications Commission this week has both subjects on the docket. The FCC’s planned May 15 open meeting is sure to provide significant insight into what direction those two topics are heading.
–Leading into the planned meeting, a report over the weekend from The Wall Street Journal indicated that FCC Chairman Tom Wheeler was set to alter his initial net neutrality proposal in a move to strengthen the agency’s view on maintaining open access to Internet services. The move would modify Wheeler’s initial plan that seemed to take a light regulatory approach to enforcing net neutrality rules, noting that the FCC would prevent harmful conduct if “it were found to not be ‘commercially reasonable.’” Critics did not seem convinced of the FCC’s stance on the subject, with a number of high-tech firms filing comments citing the need for the FCC to take a firm stance on net neutrality.
–In regards to the FCC’s 600 MHz incentive auction plans, comments for how the agency should conduct the process continue to come in thick and fast. Following up on comments submitted by AT&T and Verizon Communications, T-Mobile US noted that it had recently filed comments and met with FCC commissioners and legal representatives to make its case in regards to planned auction rules.
In its filing, T-Mobile US downplayed its recent operational success by noting that it remained a relatively small wireless player compared with AT&T Mobility and Verizon Wireless and that for it to remain competitive the FCC needed to ensure that those larger carriers were prevented from acquiring a vast majority of 600 MHz spectrum. T-Mobile US noted that the FCC did have the power to design spectrum rules designed to “protect consumers and promote competition,” claiming that the Middle Class Tax Relief and Job Creation Act of 2012 states that “the commission is not required ‘to allow every carrier to bid for every megahertz of a spectrum band that is made available for auction.’”
T-Mobile US also looked to counter claims by its larger rivals that 20 megahertz blocks of spectrum needed to be included in the auction in order for carriers to gain full benefit of LTE technology. The carrier pointed to recent arguments targeted at the AWS-3 auction where evidence was provided that there was no difference in spectral efficiency between a 5×5 megahertz block of spectrum and a 10×10 megahertz block of spectrum.
“Even if claims about the imperative of twenty-megahertz blocks were true (and they are not), the ostensible need would not pose a problem under the proposed spectrum-aggregation limits because AT&T and Verizon will have the opportunity to acquire 20-megahertz blocks anytime at least 20 megahertz of spectrum is available for purchase,” T-Mobile US noted in its filing.
The FCC is reportedly planning on setting aside some 600 MHz spectrum for smaller operators, preventing the nation’s two largest operators from bidding on those assets.
–The United Kingdom’s regulatory agency Ofcom recently released its Spectrum Management Strategy designed to lay out that region’s spectrum plans for the next decade. Ofcom noted that the blueprint was in line with government goals to double the contribution that spectrum services make to the U.K. economy to $168 billion per year by 2025.
Highlights of the proposal include an increased focus on spectrum sharing opportunities, minimizing interference issues, provide more details on how spectrum is used through an interactive map and discussions on international interoperability.
Ofcom noted that it was looking at ways to free up spectrum in the 700 MHz band currently used by television broadcasters for use by mobile communications services sometime after 2018; and was looking to achieve the government’s target of freeing up 500 megahertz of new spectrum from the public sector, with the first step involving the 2.3 GHz and 3.4 GHz bands currently being used by the Ministry of Defense.
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