WASHINGTON-The Federal Communications Commission continues to face relocation problems with its third-generation mobile-phone spectrum plan, a situation that could affect the timing of June’s auction and combine with other factors to lower revenues the United States needs to move Pentagon radio systems to new frequencies.
Military users are being moved off the 1710-1755 MHz band and non-federal wireless users off the 2110-2155 MHz band to clear the way for 3G, also called advanced wireless services. The complications involve relocating users from those bands to 2 GHz frequencies that are already occupied by various licensees.
The FCC, despite prodding from industry groups throughout the year, has yet to resolve 2 GHz relocation disputes involving broadband radio, mobile satellite and broadcast auxiliary services, industrial-scientific-medical operations and Department of Defense tracking, telemetry and commanding services. The relocation dilemma is being played out in several FCC regulatory proceedings.
Sprint Nextel Corp. and BellSouth Corp. had their fixed wireless licenses moved from the 2110-2155 MHz band to the 2496-2500 MHz band, and now fear interference from ISM services and MSS operators in the latter band.
The Wireless Communications Association International has offered the FCC a plan to resolve many of the issues, but the agency has not indicated whether it embraces the proposal. The plan is controversial since it proposes the FCC eliminate an MSS allocation at 2496-2500 MHz.
Eleven months ago, two major broadcasting groups warned the FCC about shortcomings with its 2 GHz relocation-sharing plan.
“If sharing does turn out to be impossible, both DoD and broadcasters will suffer for the commission’s error in mandating sharing and coordination efforts without sufficient support,” stated the National Association of Broadcasters and the Association for Maximum Service Television.
The two broadcast associations at that time faulted the National Telecommunications and Information Administration-the unit that advises the White House on telecom policy-for rebuffing their request to disclose the technical parameters of all Pentagon ground systems designated for the proposed relocation to the 2 GHz band so that their impact on broadcast auxiliary services could be ascertained. NTIA, according to broadcasters, said it had not at that time developed the information requested, but assured broadcasters the Commerce Department unit would be responsible for ensuring military transmissions do not interfere with their newsgathering spectrum links.
Meanwhile, wireless broadband firms represented by WCA find themselves at loggerheads with the microwave oven industry.
“Although (microwave oven vendors) have mischaracterized WCA’s position and evidenced a cavalier preference for selling the cheapest possible consumer ovens over those which are spectrally efficient, WCA’s revised position has been designed to eliminate any legitimate concern from the microwave oven vendors,” WCA told the FCC.
The 3G-related relocation issues in the 2 GHz band are not expected to be addressed at the FCC’s meeting early next month, and the agency will not predict when it expects the situation to be cleared up in advance of the June auction date.
“The commission expects to resolve in a timely fashion proceedings necessary to auction the 90 megahertz of available AWS spectrum next June,” said an FCC spokesman.
But an FCC decision on relocation issues does not guarantee the controversy will go away. Given the difficulty in crafting a ruling that will satisfy various stakeholders-some very influential and well heeled-there could be subsequent challenges and court appeals.
The FCC could still auction the spectrum with controversy and litigation hanging overhead. But to do so would create uncertainty, which tends to lower the value of the spectrum and hence the bids on licenses.
There are potential revenue problems for auctioning 1.7 GHz frequencies as well. NTIA must submit to the FCC by year’s end a cost estimate for relocating military radio users from that band to other frequencies. It was once assumed the sale of 1.7 GHz frequencies in the 3G auction easily would cover the cost of reimbursing DoD for relocation, as required by law. But heavy carrier consolidation has decreased national mobile-phone carriers’ need for spectrum. Moreover, there are indications wireless carriers may be more interested in acquiring 700 MHz spectrum being surrendered by TV broadcasters by perhaps 2009.
Failure to raise enough money at the 3G auction to fully compensate DoD for relocation costs could create havoc for the auction itself, which in turn could prompt a fresh round of lawsuits.
