T-Mobile told the FCC in an ex parte filing that eliminating designated entity requirements in upcoming Auction 58 is critical to its ability to compete in the U.S. wireless market. The carrier, which has added 4 million customers in 12 months to grow to 15.3 million subscribers, said it needs fill-in spectrum, which will be made available through the PCS auction. T-Mobile noted it has less than 20 MHz of capacity in 7 of the top 15 markets: “Auction No. 58 has numerous markets of strategic importance to T-Mobile.”

The Wireless Bureau has a team of 15 staffers working full time on the Cingular-AT&T Wireless merger, plowing through the information filings made by rival carriers and other documents, Chief John Muleta said Tues. The bureau likely will make a recommendation on the merger to the full Commission within the next 2 months, he said.

CTIA changed its strategy on H-block, refocusing on calls for further testing on how much “overload interference” is likely when an H-block device operates close to a wireless PCS handset. CTIA will lay out a testing plan in coming days and ask for a short delay in the release of an H-block order while the testing takes place, sources said Mon. The FCC is expected to hand down an order allocating H-block spectrum and a rulemaking on service rules at its Sept. 9 meeting (CD Aug 16 p1). CTIA will likely ask for at least a month’s delay for testing. Carriers have until Sept. 2 to make their case to the FCC. “With regard to the filter overload issue, you can’t answer the question unless you do testing,” a carrier source said Mon.: “What is the extent of the problem and how do you resolve it?… We still have significant concerns about how an H-block PCS service could impact incumbents. If those issues are addressable we'd like to find out.” The possibility of overload interference is “undisputed,” CTIA told the FCC in a filing Fri., providing additional information requested by the Office of Engineering & Technology: “CTIA believes that testing is required to confirm the scope and nature of such interference and to allow for reasoned decision-making on this crucial issue. The importance that PCS customers place on reliable communications and the importance that these communications play in our nation’s economy and in public safety demand no less.” CTIA said it has developed a test plan “and is in the process of securing independent test services to ensure that the overload… interference potential is fully understood.” Nextel filed in support of offering H-block spectrum at auction. A carrier source said on this issue Nextel and other carriers may not be far apart.

Proceedings allocating H-block spectrum and proposing auction rules are before Chmn. Powell, sources said Fri. The items also establish an auction for the 2.1 GHz spectrum CTIA had proposed go to Nextel as part of its 800 MHz rebanding plan alternative to the “consensus plan” ultimately adopted by the Commission.

Broadcasters and consumer electronics industry had mixed responses Wed. to the FCC request for comment on what to do about the 15% of consumers whose TV sets won’t work after the DTV conversion. The Commission in May sought hard data on who the 15% are, solutions to the transition process and an array of others questions (CD May 13 p1). Under current law, the transition is to occur in 2006 if 85% of the population can receive a digital signal, or when that threshold is met.

CTIA, T-Mobile, Verizon Wireless and the Progress and Freedom Foundation (PFF) each filed reply comments urging the FCC to scrap designated entity (DE) set-aside in the upcoming Auction 58, scheduled for Jan. CTIA said it found legal precedent: “Courts have long held that the Commission is obligated to re-assess its rules when the underlying assumptions are no longer valid or have been overtaken by new facts. Accordingly, the record evidence submitted in support of eliminating or waiving the restrictions, along with the range of views proffered on this issue, should lead the Commission at a minimum to reexamine the justification for those restrictions.” T-Mobile called the set-aside “an outmoded and demonstrably inefficient mechanism” for helping smaller players win licenses at auction. “By removing the DE restriction on certain Auction No. 58 licenses and in future auctions, the Commission will make for a more-competitive auction process, where spectrum will more cheaply and quickly find its way to providers who value it most,” PFF said. “In the end, this will benefit consumers because providers will have lower costs and spectrum be used more efficiently.”

MONTREAL -- FCC Chief of Staff Bryan Tramont said at the APCO conference here that, with the 800 MHz order out, the Commission will make the digital TV transition “the primary policy imperative of the agency” the next 6 months. Tramont, speaking on a panel of top FCC staffers, said Chmn. Powell is eager to establish a date certain for the transition, which will provide 700 MHz spectrum for public safety.

Nextel made a follow up filing at the FCC, providing technical justification for its arguments that the H-block can be safely used by licensed devices. Nextel officials met with staff from the Office of Engineering & Technology to present a paper by duplexer manufacturer Agilent, which found that safe use of the spectrum is possible. A CTIA-led group, including other wireless carriers and technology makers, has weighed in against opening the band for auction. Nextel argued in an ex parte filing that using existing technology Agilent can manufacture a partial-band duplexer that includes H-block “with out-of-band-emissions performance identical to the duplexers” used in existing PCS handsets. Nextel said the manufacturer acknowledges it can’t produce a full-band A- H block duplexer. But the filing argued that interference shouldn’t be a concern. “The possibility of mobile-to-mobile interference depends entirely on the coincident occurrence of numerous events,” Nextel advised: “Nextel believes these events are highly unlikely to occur simultaneously.” Nextel said even if they did occur at the same time “one of the many requisite precursors for potential interference that Agilent identifies is that both handsets must be at the very edge of coverage: The interfering handset must transmit at maximum power and victim handset must operate at maximum sensitivity.” Nextel, which is scheduled to get adjacent G- block spectrum as part of the 800 MHz rebanding plan, is viewed by some of its peers as the carrier most likely to benefit from an H-block sale.

FCC Chmn. Powell confirmed Wed. the FCC is considering an order that would establish an auction for H-band spectrum. Powell said he was aware of industry efforts to head off the auction. A group of carriers were at the FCC last week to argue that the use of the spectrum would lead to unacceptable levels of interference.

CTIA said in a filing at the FCC it would support the agency making available a single 20 MHz block to be auctioned on a RSA/MSA basis if the Commission moves forward on a long- pending auction for advanced wireless services. CTIA said it can’t support a Rural Cellular Assn. (RCA) proposal to make several blocks available, but could support offering a single block in a form that may be more attractive to small carriers. Sources say the RSA/MSA level is the smallest the FCC appears willing to consider as it takes up an auction of spectrum in the 1.7 GHz and 2.1 GHz bands. CTIA said taking this step “would be an appropriate means of encouraging effective small and rural carrier participation in the AWS auction.” CTIA initially opposed a RCA petition seeking more spectrum for smaller license areas. “RCA has been trying to persuade CTIA to support more spectrum for small license areas,” David Nace, RCA gen. counsel told us Tues. “We think it’s a step in the right direction.” CTIA and RCA have found common areas of agreement on auction issues in recent days. Last week, RCA said, in support of CTIA that while it didn’t necessarily support a complete end to all set-asides for designated entities it views bid credits as a more effective mechanism for making sure small carriers are victorious in spectrum auctions.