Wireless Spectrum Auctions

Another short-term extension of the FCC’s auction authority is the likeliest scenario amid a slow return to negotiations on a broader spectrum legislative package earlier this month and dwindling time left before the commission’s current mandate expires, lawmakers and other observers said in interviews. President Joe Biden signed off in December on a renewal of the FCC’s auction remit through March 9 that Congress enacted as part of the FY 2023 appropriations omnibus package after a deal to attach spectrum legislative language to the measure fell through at the last minute (see 2212300046).

FCC Chairwoman Jessica Rosenworcel offered limited insight Thursday into the current state of talks to resurrect a spectrum legislative package after a deal lawmakers hoped in December to include in the FY 2023 appropriations omnibus measure fell through at the last minute (see 2212280044). Congress instead extended the FCC’s spectrum auction authority through March 9 as a stopgap (see 2212300046). There has been “lots of talk, lots of back and forth in anticipation of that March 9 deadline,” Rosenworcel told reporters after the commissioners’ open meeting Thursday. The FCC’s auction authority is something “we want to continue and there are lots of people hard at work on that.” The FCC’s auctions “have been a good deal” for the U.S. because “they have helped support our economic and national security,” she said: The sales “put out into the economy airwaves that have helped create so much in wireless innovation” both within the U.S. and “worldwide.”

The International Air Transport Association (IATA) warned that retrofitting radio altimeters (RAs) on commercial aircraft to ensure they're safe from 5G wireless interference may cost airlines at least $637 million. The FAA earlier estimated the cost upgrades at just $26 million nationwide (see 2301100060). Comments were posted this week and last in docket FAA-2022-1647-0001. The FAA proposed in January that passenger and cargo aircraft in the U.S. have 5G C-band-tolerant radio altimeters or install approved filters by early 2024. “It is unfortunate” the FCC and carriers “refused to accept that any limitations on the 5G spectrum signal around airports were necessary to ensure the continued safe operation of commercial aviation,” IATA said: “This is despite the fact that IATA and other industry representatives raised these safety and interference concerns long before the auction of this spectrum. Now, the aviation industry, rather than the FCC or the telecommunications companies, is being told to pay to upgrade its certified radio altimeters. The unfairness of this cannot be overstated.” Carriers didn't file comments in the proceeding. “The wireless industry continues to work collaboratively with all stakeholders and supports the FAA’s schedule for altimeter upgrades," a CTIA spokesperson emailed. Others questioned timing. The American Association of Airport Executives (AAAW) said the FAA must work with other federal agencies, along with the aviation and telecom industries, “to develop a permanent solution that does not rely upon voluntary mitigation measures from telecommunications providers.” AAAW questioned whether the proposed timeline is workable: “While airports are not in the best position to determine the appropriate timeline for retrofitting existing airplanes, comments from air carriers and manufacturers in response to the proposal and over the past several months are clear: the proposed deadlines are unachievable, and FAA needs to extend them to prevent disruptions to the air transportation system.” The Cargo Airline Association said modifying altimeters “is not a quick process,” the group said: “The time it takes to go from the RA/filter modification development all the way to the end-state of equipage on aircraft is multi-layered and an incredibly complex process. The multitude of paperwork approvals and the complexity of the logistics channels have been further hampered by significant supply chain challenges and lack of available parts.”

NARUC draft resolutions on FCC spectrum auction authority and the Rural Digital Opportunity Fund (RDOF) got support from some industry and other groups ahead of this week’s state utilities regulators’ meeting in Washington, D.C. In an interview last week, Nebraska Public Service Commissioner Tim Schram (R) said it’s critical to use auction revenue to fully fund the FCC’s Secure and Trusted Communications Networks Reimbursement Program, which repays federally funded carriers required to “rip and replace” equipment from Chinese vendors that may pose a security risk.

The outlook for both the lower and upper 12 GHz bands remain unclear, with the FCC and Chairwoman Jessica Rosenworcel providing little guidance in recent months on next steps in either band. The 5G for 12 GHz Coalition has been relatively quiet this year and there have been few filings in docket 20-443 exploring the lower band.

While the lineup of cable operators providing mobile service grows, with others likely to follow, most will rely on mobile virtual network operators and their own Wi-Fi networks to provide the service rather than become more active in acquiring spectrum for their own wireless networks, wireless and cable experts tell us.

The National Weather Service isn’t well-equipped to keep up with the speed with which spectrum decisions are often made, said Michael Farrar, director of National Centers for Environmental Prediction, at an American Meteorological meeting, streamed from Denver Thursday. Farrar warned against the “drip, drip, drip of changes” as spectrum policy evolves.

The FAA is proposing that passenger and cargo aircraft in the U.S. have 5G C-band-tolerant radio altimeters or install approved filters by early 2024. The requirement is proposed in a notice for Wednesday's Federal Register, with comments due Feb. 10. Industry experts saw the latest as a net positive for telecom carriers, but some warned of a dangerous precedent being created by the FAA.

Senate Commerce Committee leaders who spearheaded a stymied bid to attach the Spectrum Auction Reauthorization Act (see 2212190069) to the FY 2023 appropriations omnibus bill (HR-2617) are divided on whether they will be able to advance the proposal largely in its current form in the next Congress. The reauth package included modified language from the chamber's version of the Spectrum Innovation Act (S-4117) and other related measures. President Joe Biden signed off Friday night on a continuing resolution that extends the FCC's spectrum auction authority through Dec. 30 (HR-4373) to allow further time for HR-2617's enrolled version to make it to his desk. Congress included language in the omnibus that renews the FCC's remit through March 9, in lieu of the spectrum deal language. The March 9 deadline is spurring lawmakers’ interest in quickly reaching a new deal when talks reconvene at the start of the 118th Congress.

Strand Consult warned that 2023 will be a “wild, uncomfortable year,” with the upheaval ahead having big implications for the mobile wireless industry. “There is war in Europe, a global energy crisis, and inflation which has made almost everything more expensive and disrupted many financial markets. China’s menace in Taiwan puts the world’s leaders on edge and imperils the supply of 90 percent of the world’s semiconductor manufacturing,” CEO John Strand blogged Thursday: “Board leaders and directors should ask themselves what is their plan [in the] case of China shutting down supply lines tomorrow.” He warned of implications for wireless. “Rising interest rates depress returns on capital, and investors' willingness to invest in infrastructure,” Strand said. “Relationships with authoritarian governments pose reputational risks,” it said: “An operator can’t stick its head into the ground and pretend nothing is happening. Indeed operators which have opted out of Huawei and ZTE will gain an advantage over those which claim that there are no risks to using Chinese network equipment. … This message will resonate with policymakers, customers, and shareholders.” Strand also noted many questions about spectrum, with Congress failing to reauthorize FCC auction authority beyond a three-month extension. “It’s hard to contemplate a modern nation being so irresponsible,” he said. “It is remarkable that the US has achieved such incredible wireless success to date given the limited access to frequencies. But to compete with China in the future, the US will need a more aggressive approach to making mid-band spectrum available for exclusive licensed use,” he said.