Clyburn Should Aim for Draft Orders in Incentive Auction, Citizens Broadband Proceedings, NAF Panelists Say

The two proceedings “critical” to generating enough spectrum are the incentive auction and a proceeding to open the “underutilized” 3550-3700 MHz band for sharing with Navy radar, and thereby creating a Citizens Broadband service (CD Feb 22 p7), said Michael Calabrese, director of the Wireless Future Project at NAF. Both proceedings have a voluminous record, and Clyburn should push for draft orders, he said. Unlicensed spectrum in particular has the ability to feed users’ need for bandwidth, he said: “The happiest contradiction in telecom policy today is the gap between claims of a looming spectrum crisis and the reality that consumers rely increasingly on unlicensed spectrum to satisfy their exploding demand for video, music and other bandwidth-intensive applications."

Since most video apps are used indoors within range of Wi-Fi, its widespread availability is the “single most important factor” that goes toward mitigating the spectrum crunch, Calabrese said. “There’s nothing else that even comes close.” It’s up to the FCC to open the most underutilized bands for unlicensed use, he said: It’s “mission critical” for Clyburn. FCC staff working on the incentive auctions seem focused on band plan and auction mechanics, and how much money to give to the broadcasters, he said. Clyburn should direct the staff to make nationwide availability of a robust amount of TV white space “a priority rather than an afterthought,” he said.

"I'm not sure entirely how much an interim chair can do,” said Matt Wood, Free Press policy director. Due to “political inertia” and “institutional deference,” she might not be able to do much more than “keep the ball moving,” he said. Clyburn should “prepare an order, but not necessarily vote it. I don’t want to set the bar too low for an interim chair, but I also don’t want to set it too high.” That’s especially true since no one yet knows who will replace departing Commissioner Robert McDowell, Wood said. Wood encouraged Clyburn to move forward on the special access proceeding. It’s important for the agency to work on collecting and analyzing data on competition in the special access marketplace, he said, but “I really don’t see them getting to a vote on that” while Clyburn is chair.

Genachowski promised the FCC would be a data-driven agency, but “it’s a tough thing to do to change culture and be transparent,” Wood said. This FCC “has asked more questions,” but “hasn’t always answered those questions or even let other people answer those questions.” Clyburn could heed the National Broadband Plan’s call to collect more granular broadband deployment and pricing data, and turn it over to researchers to examine the market structure, Wood said. That could help everyone understand “how the market acts” and “how it feels to real people,” and figure out whether broadband prices “are heading north or south,” he said.

The wireless industry has become increasingly consolidated, to the point where for the last three years, the FCC has not been able to find it effectively competitive, said Rebecca Thompson, general counsel at the Competitive Carriers Association. Verizon and AT&T control 70 percent of all spectrum below 1 GHz, she said. Due to Verizon acquiring spectrum from the cable companies and AT&T acquiring spectrum from NextWave and Qualcomm, plus secondary market transactions, “we now need some simple targeted rules that allow our carriers to compete,” Thompson said. That means access to spectrum, access to networks and access to devices, she said: “It’s essential that the commission prevent undue spectrum aggregation by Verizon and AT&T.”

Clyburn should also ensure that wireline carriers continue to have interconnection rights to wireline affiliates, Thompson said: Technologies may be changing, but it’s “critical” that roaming and interconnection arrangements remain strong so large carriers cannot “foreclose competition by denying access to their vast networks.”