FCC maintains spectrum cap

Despite predictions that the wireless spectrum cap would be removed, the FCC voted last week to let the current 45 MHz limit on spectrum ownership stand, though it raised the limit to 55 MHz in rural areas. Although the commission was nearly unanimous on the issue, some industry members and a couple of commissioners found reasons why the cap is unnecessary.

"I am confident in the antitrust agency's ability to identify abuse of market power," said Commissioner Harold Wilkes Furchtcott-Roth. "I've reached the conclusion that I do not know why we have [spectrum caps]. I suspect the commission will vote to retain [the cap], and though it has relaxed its views for rural areas, I would have gone further."

Although the rural exemption generally was well received, the Cellular Telecommunications Industry Association said that the FCC has denied next generation benefits to urban customers.

However, the commission indicated that it would consider case-by-case waivers of the cap. Regardless, the CTIA maintains that the decision means American customers will wait longer for third generation services than their European and Asian counterparts.

The Personal Communications Industry Association regarded the decision as a victory for competition. Because the PCS industry is only 3 years old, many PCS providers have not yet captured customers in certain markets.

During the same session, the FCC also decided to allow wireless carriers flexibility in choosing either handset-based or network-based emergency location technology.