Floated C-Band Clearing Compromise Idea Not Finding Big Support
Clearing C-band through a mix of sale of spectrum by satellite operators and an overlay auction of terrestrial mobile licenses is meeting some skepticism. Spectrum and satellite consultant Tim Farrar blogged Saturday that no side in the band-clearing debate is seemingly interested in compromise, though the sale-overlay auction mix is obvious. Michael Calabrese, director of the Wireless Future Program at New America, said even if the idea were practical, it would "be just another fig leaf [justifying] an unnecessary and unjustifiable windfall" for satellite operators.
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Farrar said allowing satellite operators to sell the 180 MHz of spectrum at the bottom of the C band, and keep the proceeds while the FCC does an overlay auction of terrestrial mobile licenses in the remaining band, "follows the traditional FCC model of splitting the baby, so everyone gets something." Some of the satellite operators' proceeds would go toward new satellites and filters so video delivery continues in the remaining 300 MHz of spectrum, while the federal auction should exclude a 100 MHz of perhaps 50-100 MHz below 4.2 GHz to preserve key services and protect aeronautical users in the 4.2-4.4 GHz band, Farrar said. Wireless operators could get spectrum through the C-Band Alliance (CBA) or by buying overlay licenses, he said. Cable ISPs might not enjoy additional competition for their broadband business but could buy spectrum in the overlay auction and compete in the wireless market, he said.
T-Mobile, a CBA plan critic (see 1902050032) with its own clearing plan, emailed that overlay auctions have significant uncertainty and likely won't lead to more spectrum being cleared than the 180 MHz the CBA has proposed. There remains a "lack of a transparent auction process," it said. The CBA didn't comment Monday.
Overlay rights "are an under-explored tool in transitioning spectrum rights" and could be useful in negotiating upgrades and relocations for federal systems, said Information Technology and Innovation Foundation Broadband and Spectrum Policy Director Doug Brake. But it's questionable whether overlay rights "will move the needle on seeing the CBA proposal over the finish line," though that could change with some key stakeholder support, he said. The FCC's full-band, full-arc policy also complicate overlay rights, he said.
Adding on a sidecar overlay auction violates the Communications Act by letting satellite companies "sell spectrum they borrowed at no cost directly to big mobile carriers," Calabrese said. An overlay auction to clear metropolitan markets could cause big disruptions for video and audio distribution, which has rural and small market cable systems fretting, he said. New America also opposed the CBA plan.