CBRS Notice Gets 5-0 Vote, Despite Concerns by Democratic Commissioners

The notice proposes to allow bidding on a cellular market area (CMA) basis, rather than just by counties, in the top 172 CMAs. Last October, over a Rosenworcel dissent, the FCC agreed to change the size of PAL areas from census tracts to counties, and made other changes aimed at assuring a robust PALs auction. The notice got only minor tweaks, FCC officials said at Thursday's meeting. Two questions were added at Rosenworcel’s request and a few sentences at Starks’ request.

The agency retreated from its “early and inspired vision” for the band, starting last year when it rewrote the rules (see 1810230037), Rosenworcel alleged. “We lost our nerve and we reverted back to the old,” she said: “We expanded license sizes from census tracts to counties, shutting out new spectrum interests that cannot compete at that scale.” The latest PN could make things “even worse,” she said. “Continuing down this road, narrowing the range of spectrum interests that could use these airwaves, would be a grave mistake,” she said. “At a minimum, we must honor the hard-fought compromise that kept service areas in this band defined by counties.”

The FCC continues to get things wrong on spectrum for 5G, Rosenworcel said. “While we have focused all our early energies on high-band spectrum auctions, the rest of the world has left us behind,” she said. The agency’s “slow pace of bringing mid-band spectrum to market for 5G will only deepen the digital divide,” she said.

Starks was more positive but warned of unintended consequences. Starks asked whether bidders seeking smaller licenses will be able to be able to “compete effectively with CMA-level bidders for blocks in counties within the same CMA as a large city.” How likely is it two bidders seeking CMA licenses would get all seven PALs in a market, he asked. “To address these issues, should we limit the number of CMAs that are subject to CMA-level bidding?” He asked: “If so, what limits would we impose?”

“Hallelujah,” said Commissioner Mike O’Rielly, who oversaw development of revised rules. “With every passing day, CBRS is becoming more of a reality and now we have an auction date.” More work remains, he said: “Hopefully, in the near future, we can review and improve the protection zones, technical rules and power limits to ensure that they are not larger or more protective than necessary.”

The agency had the wrong rules when he took the helm, said Chairman Ajit Pai. “These reforms have made 3.5 GHz licenses much more appealing for 5G operations and will encourage the rapid deployment of next-generation wireless networks in the band,” he said: “Together with stakeholders, we’ve been doing the hard work necessary to make the band’s unique dynamic sharing model work.”

Commissioner Brendan Carr said work on CBRS has gotten diverse players to come to the table. “In this time of division, what can bring such bitter rivals together?” he asked. “The answer is right in front of us: 3.5.”

“Today’s proposal, if adopted, would retreat even further from the original PALs design,” said Phillip Berenbroick, Public Knowledge policy director: “One of the key benefits of the original PALs design was to license 70 megahertz of the CBRS spectrum by census tract, making it more likely that small wireless providers, [wireless ISPs], municipalities, and other entities could acquire critical mid-band spectrum and serve local communities that have been left on the wrong side of the digital divide.”

CTIA President Meredith Baker applauded the changes. “Scheduling the nation’s first mid-band spectrum auction is a key milestone in maintaining our 5G leadership,” she said.

O’Rielly’s leadership “has brought changes to the band that have increased certainty and will drive investment,” said T-Mobile Vice President-Government Affairs Steve Sharkey. “Last week's approval of initial commercial deployments and this week's auctions procedures notice are significant milestones in putting this spectrum to work,” said Will Johnson, Verizon senior vice president-federal regulatory and legal affairs.

The notice is “the culmination of more than four years of hard work by the FCC to make the 3.5 GHz band available for shared use by federal, non-federal and unlicensed users,” said Joan Marsh, AT&T executive vice president-regulatory and state external affairs: “Through a unique, three-tiered sharing mechanism as well as targeted and sensible rule changes, the Commission has improved the incentives to invest in and utilize this mid-band spectrum.”