Senate Communications Subcommittee members focused on 5G, need for rural broadband and potential for freed-up federal spectrum during a Thursday hearing on implementing the Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless Act. The Mobile Now Act was enacted as part of the FY 2018 omnibus spending bill (see 1803230038). The law requires DOD and other federal agencies identify at least 255 MHz for broadband use by 2022. It requires the FCC and NTIA identify at least 100 MHz for unlicensed use below the 8 GHz band.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
Latest spectrum auction news
House Communications Subcommittee members from both parties grilled FCC commissioners during a Thursday hearing on recent actions, including the commission's long-running investigation into wireless carriers' location tracking practices (see 1805240073), and what some deemed Chairman Ajit Pai's failure to adequately loop legislators in on his plans. Pai was praised on his proposal for a public auction of spectrum in the 3.7-4.2 GHz C band, as expected (see 1912040028). House Communications Chairman Mike Doyle, D-Pa., and others drilled in further on C-band plans, with an eye to advancing legislation (see 1911210056).
The expected January draft order establishing a C-band spectrum auction method might also lay out an incentive payment scheme for the spectrum's stakeholders, such as satellite and earth station operators, said wireless and industry experts and watchers Tuesday evening at an FCBA CLE. But the FCC incentive regime the agency lays out might not be the final word. The chairman's office didn't comment Wednesday.
The House Communications Subcommittee's Thursday FCC oversight hearing is expected to include criticism of commission actions and a focus on telecom policy priorities like deciding how to allocate proceeds from a coming auction of the 3.7-4.2 GHz C band, said lawmakers and others in interviews. FCC Chairman Ajit Pai and the other four commissioners are to testify during the panel, which will begin at 10 a.m. in 2123 Rayburn. The hearing will happen a day after the House easily passed another FCC-related policy priority, the Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and Deterrence (Traced) Act (S-151).
FCC Chairman Ajit Pai’s Monday push for Congress to repeal a provision of the 2012 spectrum law that mandates public safety move off the 470-512 MHz T band by 2021 could help spur lawmakers, particularly Republicans, to address the longstanding issue, said stakeholders in interviews. Congressional T-band action isn't expected at least until after the start of 2020, given a backlog of other priorities and broader political issues, lobbyists said. The GAO recommended in June that Congress consider letting public safety incumbents continue to use the T band amid a lack of feasible alternative spectrum (see 1906210050).
Report ISPs are deploying broadband to all Americans "in a reasonable and timely fashion," industry told the FCC in comments posted through Monday in docket 19-285 on a notice of inquiry for the 15th annual Communications Act Section 706 report (see 1910230065). Critics said the last report overstated broadband deployment (see 1905290017).
The FCC may have to backtrack on proposed rules for the citizens broadband radio service band after getting essentially no support in the record for cellular market area-level bidding in June’s auction of priority access licenses (PALs). Only T-Mobile backed CMA-level bidding but not using the FCC-proposed scheme (see 1911130056). Commissioners approved a notice in September that proposes to allow bidding on a CMA-level basis, rather than just by counties, in the top 172 CMAs. Commissioners Jessica Rosenworcel and Geoffrey Starks voted for the notice, though with reservations on CMA-level bidding (see 1909260040).
FCC Chairman Ajit Pai will circulate an order seeking approval of a public auction of 280 MHz of C-band spectrum in 2020, for a vote early in the new year, FCC officials said Monday. The order won't be on the agenda for the Dec. 12 commissioners’ meeting. The decision is considered a huge loss for the C-Band Alliance, which pressed for a private auction (see 1911150046). President Donald Trump called Pai Oct. 30 to find out more about the C band but didn’t express a view the FCC should hold a public auction, FCC officials said. Pai unveiled the decision in a letter Monday to leaders in Congress.
The FCC is seeking comment on what constitutes a small business when determining a company’s eligibility for bidding credits in the 2.5 GHz auction. The FCC agreed in July to a still-unscheduled auction of the spectrum, over partial dissents by Commissioners Jessica Rosenworcel and Geoffrey Starks (see 1907100054). That auction is expected in late 2020 (see 1909300064). The Wireless Bureau and Office of Economics and Analytics sought comment Friday, with due dates to come in a Federal Register notice. “We seek comment on the definitions of a ‘small business’ as an entity that, together with its affiliates, its controlling interests, and the affiliates of its controlling interests, has average gross revenues that are not more than $55 million for the preceding five years, and a ‘very small business’ as an entity that, together with its affiliates, its controlling interests, and the affiliates of its controlling interests, has average gross revenues that are not more than $20 million for the preceding five years,” said a notice in docket 18-120.
The C-Band Alliance told the FCC its proposal has broad support. “As the record makes clear, a diverse set of entities and interests, spanning a variety of industries and immediate economic interests, have come together to support the market-based approach," said a filing in docket 18-122, posted Thursday. Supporters include carriers, aerospace manufacturers, video programmers, wireless equipment makers, broadcast station operators and free market organizations. CBA filed a report by Brattle Group’s Coleman Bazelon. A “market-based mechanism, such as the consortium proposed by the C-Band Alliance, can overcome market failures that lead to significant holdout problems, solve issues of informational complexity that lead to regulatory failures, maximize the amount of spectrum available in the marketplace while protecting incumbent operations, and ensure that the spectrum is put to its highest valued use,” the report said: “This approach, which is applicable in incentivizing incumbents to discover value creating spectrum repurposing well beyond the C-Band, fits in well with the FCC’s light-touch approach to regulating the mobile market.” AT&T said the FCC should reallocate the C band, and ensure its order would survive legal challenge. “Modify the satellite operators’ authorizations under Section 316 of the [Communications] Act to add a terrestrial use component, but specify that those flexible use rights would have to be collectively assigned, within a stated period, through an auction process in order to, among other things, fund the transition of existing C-band users,” AT&T asked. The carrier met with Chief Donald Stockdale and others in the Wireless Bureau.