DTV delay to impact access to 700 MHz licenses: Spectrum tie-up could impact LTE, FLO deployments

The wireless industry suddenly faces a delay of its own, with digital TV legislation likely headed to the White House soon that will force wireless carriers to wait about four months longer to access 700 MHz spectrum licenses purchased for nearly $20 billion from the U.S. government in an auction last year.
The Senate late last week approved a bill, a replica of a measure initially rejected in the House, which postpones the DTV transition from Feb. 17 to June 12. The final version that is expected to be passed by Congress and rushed to President Obama for his signature will not include various concessions sought by the wireless and public-safety sectors. Still, some concerns expressed by wireless operators and public-safety organizations were not altogether ignored.
In early January, before being sworn in as the 44th U.S. president, Barack Obama urged Congress to push back the DTV cutover because of a funding shortage and other problems. Obama’s move triggered a flurry of non-stop legislative activity and industry lobbying.
Verizon Wireless and AT&T Mobility, the nation’s two largest cellular carriers, paid the lion’s share of record receipts received by the U.S. Treasury for licenses in 700 MHz spectrum being relinquished by broadcasters. No. 1 Verizon Wireless, which plans to tap into 700 MHz frequencies to begin rolling out LTE-based services later this year, was dead set against a DTV delay at first. AT&T Mobility, whose LTE strategy is less time sensitive, took a different tack by agreeing at the outset to postpone the cutover for about three months. Both carriers ultimately were able to secure assurances from lawmakers and Obama officials that a DTV delay would be a one-time proposition. The wireless industry has held out hope for provisions in DTV delay legislation that would enable early testing of 700 MHz gear and provide buildout relief for carriers.
Drag on FLO
Qualcomm Inc., the San Diego-based CDMA technology leader, has failed to date to convince lawmakers to give it access this month to 700 MHz spectrum it bought to expand its MediaFLO USA Inc. mobile TV service in new markets.
In a Jan. 28 conference call on fiscal first-quarter earnings, Qualcomm CEO Paul Jacobs reiterated the company’s views.
“We oppose the delay of the Feb. 17 DTV transition date which was set by the U.S. government three years ago,” Jacobs said. “Since then, hundreds of millions of dollars have been spent making Americans aware of the transition date. Qualcomm has also invested hundreds of millions of dollars, including over $550 million to acquire spectrum in the FCC’s 700 MHz auction last year, to extend our innovative FLO TV service and build out the network. We have abided by the laws and regulations set by Congress and the FCC. Unlike other companies, we are prepared to launch our FLO TV service and turn on 100 new transmitters across the U.S. immediately after the transition date, which will allow a total of more than 180 million consumers in 80 markets to use our innovative wireless service.”
Public-safety organizations lobbied to be exempted altogether from any DTV transition delay, but lawmakers did not provide the full carveout they requested. Instead, legislation would allow first responders greater use of 700 MHz frequencies only in cases where a TV station decides to shift to all-digital broadcasting before June 12. DTV legislation allows broadcasters to do just that, an option some stations likely will embrace to reduce energy costs associated with supporting both analog and digital transmissions.
Shifting tactics
In signing off a second time on DTV delay legislation sought by the Obama administration, Senate Republicans signaled they could have a much different agenda (and strategy) than their House counterparts in dealing with Democrats who control the White House and Congress.
“The Senate has acted quickly and in a bipartisan way to put the needs of consumers first. Senator (Kay Bailey) Hutchison’s (R-Texas) leadership was critical to getting this bill passed,” Senate Commerce Committee Chairman Jay Rockefeller (D-W.Va.) stated. “We addressed the concerns of our colleagues, public safety, broadcasters and most importantly, consumers. The House will have a second chance next week to implement this delay, I am hopeful they will pass this bill so we can send it to President Obama.”
The Senate, which only recently passed a measure to postpone the DTV cutover from Feb. 17 to June 12, was forced again to act on the legislation after House Republicans sabotaged passage of a slightly revised version of the bill earlier in the week. House Democrats had used a fast-track voting procedure in which there is no debate and two-thirds support is needed. The House DTV bill did not pass by a two-thirds margin, even though it secured a majority of votes. The House this week is expected to vote once again on the DTV delay bill, with lawmakers apt this time to use regular voting procedures that nonetheless could include severe restrictions on debate and amendments.