Focus of EBS Order Changed in Build Up to Commissioner Meeting
The FCC made some major changes to its focus in the three weeks the 2.5 GHz educational broadband service order was before commissioners. They approved the order last week, with Democrats Jessica Rosenworcel and Geoffrey Starks dissenting to most parts (see 1907100054). A side-by-side comparison shows significant changes. While the FCC has often changed course on an item on the way to a vote, the decision of Chairman Ajit Pai to post drafts three-weeks before a meeting make the changes more apparent than they were in the past, former officials said.
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The biggest change involves channel sizes. The original band plan called for a single 100 MHz and one 16.5 MHz channel. By providing the two sizes, “we will provide opportunity for entities of various sizes and spectrum needs,” the draft said.
The final band plan provides two channel blocks of 49.5 MHz and 50.5 MHz, along with the smaller channel. “By providing applicants the flexibility to bid on three different licenses we also will provide opportunity for entities of various sizes and spectrum needs to participate in an auction,” the final order said: “As commenters note, it is important that wide channel blocks of contiguous spectrum be available because wider blocks are necessary to provide high-speed broadband access. By creating two new wider channel blocks of 49.5 megahertz and 50.5 megahertz of contiguous spectrum, respectively, we have done just that.”
The order cited in footnotes lobbying by Carolina West, Midco, Sprint, the Wireless Communications Association and Wireless ISP Association. “By creating two new licenses of almost equal size while keeping channel groups together, we have made it easier for the new overlay licensees to coordinate with the incumbent EBS licensees,” the order said.
The order also offers new language tied to Commissioner Brendan Carr’s investigation of the business practices of national nonprofits with EBS licenses (see 1907050034). “Based on recent allegations that several national, non-profit licensees have not complied with the Commission’s eligibility and other rules … we direct the Wireless Telecommunications Bureau and the Enforcement Bureau to investigate such allegations and take appropriate action based on their findings,” the FCC said.
Commissioner Mike O’Rielly said after the meeting last week he has spent much of his time on the C band because he sees it as the “premier band for offering a 5G mid-band play.” The 3.5 GHz citizens broadband radio service band may also get more interest than the 2.5 GHz band, he said. Large carriers may not see much value in the 2.5 GHz band, though rural providers might, he said. “That’s part of the problem with 2.5 -- where it’s available people may not necessarily want it,” he said: “It’s a fragmented band.”
The agency needs to be flexible, Carr said after the meeting. The order “reflects we don’t know exactly what’s going to happen,” he said. “We’ve cleared a path now where quickly can repurpose this for 5G.” Providers can buy both larger licenses in any market, he noted. Fifth-generation “is not a mid-band service alone,” he said.
“Looking at the citations in the order tells the story,“ said Joe Kane, tech policy fellow at the R Street Institute. “The change seems directly responsive to requests from small and rural carriers. Since much of the unused 2.5 GHz spectrum is in more rural areas, it makes sense to try to set up the new licenses in ways that likely deployers would actually use.” Initial license sizes may not be that important “because carriers of all sizes would be able to reshuffle their rights after the initial auction,” he said: “The fact that the initial conditions are still so important highlights the fact that secondary markets are plagued by transaction costs and don't really work super well today. Hopefully the commission can address some of those issues in its partitioning, disaggregatio and leasing proceeding.”
“Switching to smaller increments certainly could help smaller players, insofar as it offers up smaller chunks to bid on,” said Recon Analytics’ Roger Enter. Whether it means they'll bid for the spectrum remains to be seen, he said.
“Historically, it has been common for the FCC to make fundamental changes to meeting agenda items late in the game, sometimes even in the minutes before an open meeting,” said Cooley’s Robert McDowell. “The Pai commission has done a terrific job of settling differences and refining orders in the days and weeks before a monthly meeting. What’s refreshing about this matter, however, is that the commission was able to improve its order nimbly to produce a win-win-win order that can accommodate all types of potential bidders: small, medium and large.”