FCC Begins Effort to Open MSS Spectrum to Mobile Broadband
The FCC voted to loosen rules in the 2 GHz band allocated to mobile satellite services Thursday, opening the process toward making MSS spectrum more accessible for terrestrial broadband. The rulemaking also would make MSS spectrum fall within secondary market spectrum leasing policies already in place in other bands. A separate notice of inquiry adopted Thursday focuses on eliciting investment in MSS spectrum and how to handle the increased value of the spectrum. The proceedings are part of the FCC’s National Broadband Plan.
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The rulemaking is a first step of removing the “ancillary” designation of the ancillary terrestrial component (ATC) that made terrestrial service a secondary service in the band. While the NPRM would add terrestrial services as a co-primary allocation in the band, similar relaxation in the L-band and Big Low Earth Orbiting band would have to come in future proceedings. The new rules would “create greater predictability in the band licensed for terrestrial mobile broadband services,” the agency said.
The NOI begins the discussion on how to attract investors on the terrestrial side in the band while protecting satellite interests. One possible way forward raised in the NOI is voluntary incentive auctions that could potentially allow MSS spectrum licensees to give back their licenses to the FCC in return for a share of future proceeds from an auction. Such auctions would need approval from Congress.
The agency’s actions on MSS reflect a need for both MSS services and more efficient use of spectrum for mobile broadband needs, said FCC Chairman Julius Genachowski. The NPRM and NOI build on the deal between SkyTerra and Harbinger that will result in a multi-billion dollar investment in broadband services, he said. Commissioner Michael Copps agreed that the NOI and NPRM don’t equate to choosing one technology over another. “We must remember that we are not looking at an either/or proposition. Instead, I believe that -- while we consider all options -- we should focus on the interplay between the mobile satellite service and terrestrial wireless broadband,” he said. Copps said the “potential for rural America, and for public safety, remains enormous,” noting that AT&T and TerreStar are already working together. Copps said “spectrum fees” could be one way “to compensate the American people for the terrestrial use of the public spectrum resource.”
Commissioner Mignon Clyburn said she approved of the 2 GHz band approach that “wiselyrecognizes that not all spectrum leasing policies may be suitable for all MSS licensees,particularly those MSS licensees that have also deployed [ATC] services.” The proceeding will “provide clear rules and procedures for spectrum leases with third party entities -- a significant improvement to our current ad hoc approach,” said Commissioner Meredith Baker. Commissioner Robert McDowell said immediate action on 2 GHz spectrum was necessary. “Due to the time necessary to develop a full record on the ideas raised in our NOI, I urge that we move forward as quickly as possible on the rulemaking aspect of this proceeding,” he said.
TerreStar, a licensee in the 2 GHz band, supported the FCC’s “prompt follow-up on the National Broadband Plan’s recommendation to eliminate some of the regulatory bottlenecks to unlock the MSS bands’ full potential, both satellite and terrestrial,” said CEO Jeffrey Epstein “As Commissioner Copps noted, TerreStar is uniquely positioned to deliver on this potential and we look forward to working with the Commission on this proceeding,” he said. The other 2 GHz band licensee, ICO Global, said “as the national broadband plan laid out in May, there is an opportunity to create greater flexibility and more efficient use in mobile satellite spectrum bands. Today’s proceeding begins a process in which we'll be actively engaged in the coming months.” EchoStar, which has an ownership stake in TerreStar, also said it supported the actions.
Adoption of the MSS rules is consistent with the “theme” that the FCC is “highly focused on increasing the supply of spectrum for terrestrial wireless operators,” said Paul Gallant, analyst at Concept Capital. Gallant said the order is positive for wireless infrastructure companies and carriers. Comments by Clyburn could be significant, he said. Clyburn “said it is important for the FCC to consider how future MSS leasing affects terrestrial wireless competition,” he said. “This likely refers to the recent SkyTerra/Harbinger ruling that indicated FCC staff had concerns with SkyTerra leasing MSS capacity to AT&T or Verizon Wireless. Should the FCC make it more difficult for AT&T and Verizon to lease MSS spectrum, other wireless carriers … could more easily acquire that spectrum from MSS companies. Restricting AT&T and Verizon also would reduce the overall benefit to MSS companies by preventing the best-financed wireless carriers from bidding up the lease prices paid to MSS companies."
"Adoption of today’s NPRM advances the effort to make the spectrum promises of the National Broadband Plan a reality,” said CTIA President Steve Largent.