In comments that may reflect competitive positions in today’s mobile phone market, mobile phone and mobile satellite service industries told the Federal Communications Commission more spectrum will be needed for third-generation services.
Industry comments are in response to a Notice of Inquiry the FCC released in August seeking statements on third-generation services. The FCC wants to forge a U.S. position on spectrum for the International Telecommunication Union at the World Radiocommunication Conference in 2000. The ITU is now considering whether it should add more spectrum for International Mobile Telecommunications-2000 service. ITU is in charge of setting 3G standards and coordinating frequencies for their use around the world. The anticipated new 3G services are expected to enable portable data rates of 384 kilobits per second and global roaming.
The ITU at the 1992 WRC identified 230 megahertz (1885-2025 MHz and 2110-2220 MHz) of spectrum that should be used on a worldwide basis by administrations wanting to implement IMT-2000 systems. By 1997, it was concerned 230 megahertz would not be enough spectrum and decided to re-examine the issue at the next WRC meeting in 2000.
The FCC is required to auction the 40 megahertz of spectrum at 2110-2150 MHz plus an additional 15 megahertz at 1990-2110 MHz. The new spectrum could better align with the bands Europe and Japan are clearing for 3G technology.
The commission in 1994 auctioned to PCS operators part of the spectrum the ITU wants to use for 3G service, and it has allowed PCS and cellular operators to upgrade their networks to 3G technology. MSS providers also were allocated part of the 3G spectrum set aside by the ITU.
While the majority of respondents, including MSS providers and manufacturers, indicated more spectrum would be needed to support the higher data rates envisioned, personal communications licensee Sprint PCS-which expects to incur billions in losses during the next several years as it pays for current licenses and builds out its nationwide network-said current spectrum allocations are sufficient to support the proposed wideband IMT-2000 applications.
“While certain third-generation capabilities will impose new bandwidth requirements, third-generation technologies will also increase substantially the efficiency in which CMRS licensees use their existing spectrum,” wrote the company. “For example, Sprint PCS anticipates the cdma2000 technology will allow it double its capacity to handle voice traffic-without obtaining any additional spectrum.”
SBC Wireless Inc. said rather than allocating new spectrum for 3G services, the commission should lift the 45-megahertz spectrum cap and permit carriers to seek additional spectrum from existing sources. SBC’s parent company today aggressively is purchasing other telecommunications providers and already has an issue with the spectrum-cap rule. It intends to acquire Ameritech Corp., but must sell off certain properties, including a Chicago license, because ownership of the properties would exceed the carrier’s spectrum-cap limit.
The Cellular Telecommunications Industry Association, representing the fast-consolidating cellular industry, remained vague on new 3G spectrum allocation, but emphasized the need for spectrum-cap liberalization. CTIA urged the FCC to “preserve carriers’ ability to use their current spectrum licenses and spectrum already allocated for CMRS to advance new telecommunications technologies.”
The Personal Communications Industry Association said it supports “proactive policies that identify and reserve additional spectrum for 3G applications to be made available over the next 10 to 15 years.”
Though no one can predict when the demand for 3G services will come to fruition, AirTouch Communications Inc., BellSouth Cellular Corp. and Bell Atlantic Mobile urged the FCC to act now in planning for additional spectrum.
“Unless additional spectrum is allocated for 3G mobile applications now, current industry and market trends indicate that the CMRS industry will face a critical shortage of spectrum by 2005,” wrote AirTouch.
BellSouth said FCC action is needed now because of the long planning cycle for global frequency allocations. A final U.S. position must be submitted to the international ITU-R Task Group 8/1 meeting in March to ensure U.S. input in the process, said BellSouth.
Bell Atlantic suggested the commission by the end of this year should develop a specific consensus spectrum proposal in order to have a consensus position in advance of the WRC planning meetings. “There can be no doubt that new spectrum will be needed to meet demand,” said the company.
AT&T Wireless Services Inc. said the FCC’s request for predictions about the market growth for IMT-2000 services between now and 2010 was premature. It cautioned against releasing the spectrum in a “piecemeal fashion.” The FCC should allocate new spectrum “in a planned, orderly manner in conjunction with timetables for completion of international standards, completion of development of IMT-2000 network infrastructure and terminal equipment as well as deployment of new services taking advantage of new equipment. These developments will occur over the next 10 years,” said AWS.
Most of those responding to the FCC’s request for comments were unable to forecast the amount of new spectrum that would be needed because of the difficulty estimating what the demand for 3G services would be. The FCC has said that U.S. proponents of IMT-2000 have estimated requirements to be about 499 megahertz for terrestrial wireless systems-about 309 more than existing PCS, cellular and enhanced specialized mobile radio spectrum-said the FCC. Space system proponents have estimated they will need 136 megahertz beyond what already is available for MSS.
