Wireless carriers descended on the FCC last week for a series of meetings to point to potential major interference problems that could be caused to other PCS communications if the H-block spectrum is made available at auction (CD July 21 p2). The group argued that “nothing can be done” that would eliminate interference risks. Carrier sources said they sought the meetings only after it became clear that the FCC may look at auctioning H-block spectrum in an item at its Sept. meeting.
Wireless carriers told the FCC “ample” evidence exists for the Commission to launch a rulemaking on Auction 58 to decide whether to change the rules giving designated entities (DEs) a set-aside for some licenses. But DEs disagreed, saying the numbers demonstrate they would win few licenses at auction without the set-aside.
The Rural Cellular Assn. is breaking with other rural groups to urge an end to set-asides for designated entities (DEs), arguing that bidding credits are a much more effective means of spurring bids by small carriers. RCA said the FCC should undertake a rulemaking to explore different levels of bidding credits as well as smaller geographic areas for licenses.
The Wireless Communications Assn. is considering a petition for reconsideration following release Thurs. of FCC’s order setting new rules for the 2495-2690 MHz band. Among WCA’s concerns is that a bandwidth sharing plan for the 2496-2500 MHz band could cause enough anxiety among investors to negate in part FCC efforts to spur more investment in wireless broadband. The fight pits WCA against GlobalStar, main user of the space.
In what’s shaping up as the next potential big spectrum fight, the FCC is contemplating a release at its Sept. meeting or earlier of a rulemaking clearing the way for the auction of H-block spectrum, sources told us Tues. The FCC is expected both to reallocate the spectrum and propose service rules to make an auction possible.
The number of former NextWave licenses sold to Cingular or retained by NextWave and already off the market dictates that the FCC must not change auction rules so that fewer licenses will be made available to designated entities (DE) in upcoming Auction 58, DE Council Tree told the FCC in a filing.
The FCC agreed 5-0 Thurs., after months of arguments, to adopt an 800 MHz rebanding plan, which will give Nextel much of what it wanted, including 10 MHz of spectrum in the valuable 1.9 GHz band. But Nextel may have to pay more than $3 billion, beyond the spectrum it agreed to contribute. The FCC is also requiring that Nextel sign a letter of credit for $2.5 billion to cover all public safety transition costs.
FCC Wireless Bureau Auctions & Spectrum Access Div. promotions: Bill Huber to assoc. division chief; Erik Salovaara to deputy assoc. division chief; Brian Carter to special counsel; Rita Cookmeyer to financial policy analyst… Appointed to task force studying Nielsen TV ratings: Mario Baeza of Baeza Group investment firm; actor George Takei; Daniel Villanueva of Bastion Capital; Karen Watson of EchoStar… New at TV Guide TV Group (all ex-ABC Family): Margot Davis, vp-mktg. & promotions; Melissa Van Meter, vp-mktg. & advertising; Todd McNulty, vp-on air promotions… Rainbow Ad Sales promotes Moira Prophet to dir.-ad sales… Jeremy Darroch, ex-Dixons, named BSkyB CFO effective Aug. 16… Mark Rigolle, ex-Belgacom, appointed SES Global CFO, replacing Juergen Schulte, who retires.
The deadline for submitting bids in NextWave’s private auction, scheduled for Thurs., came and went Tues. without a decision from the FCC that Nextel would get the 1.9 GHz spectrum it has been seeking. That was a potentially negative development for Nextel, which had pushed for a decision prior to the deadline. The FCC last week put a Nextel order on its agenda for Thurs.’s Commission meeting.
CTIA must decide this week how much to fight a Wireless Bureau decision to allow only designated entities (DEs) to bid for most licenses when Auction 58 takes place next year. Putting together an association position is proving more difficult than expected, and the group is under pressure to draft a more muted response, we have learned.