Government reports grim for 3G’s prospects

Final reports released Friday investigating the possibility of giving up or sharing government and commercial spectrum for third-generation services were not encouraging for the wireless industry.

The Department of Defense, which holds spectrum in the 1755-1850 MHz band--spectrum the wireless industry wants most--said band sharing is not possible and vacating the bands will take considerably longer than the wireless industry wants.

“Estimates indicate that, regardless of financial settlement, vacating the band could not be accomplished for most non-space systems until 2010 and beyond; and legacy space systems would require continued protected access to this spectrum until 2017 and beyond,” the Defense Department said in its report.

In addition, the agency indicated that total relocation of its systems is impossible unless comparable spectrum is made available and the costs of relocation are fully reimbursed. The Defense Department said comparable spectrum may not be readily available. The agency estimates that it would cost in excess of $4.3 billion to relocate its systems.

The National Telecommunications and Information Administration, the principle advisor to the president on telecom policy, was more optimistic. It found limited sharing of government-controlled spectrum between commercial and government users may be possible under certain conditions that will be explored further.

The Federal Communications Commission--the agency in charge of studying 3G possibilities in the 2500-2690 MHz band where fixed-wireless carriers operate--echoed its previous findings, that band sharing or segmentation options would severely disrupt incumbent operators. In addition, the FCC cannot identify alternate frequencies for these incumbents.

“It will be a very tough road since the DOD is in the spectrum,” said Larry Swasey, vice president of the communications research practice with Allied Business Intelligence. “We have a Republican president already talking about building a new defense system.

“Obviously the Defense Department is a very important asset. While the wireless industry has a lot of clout, when it comes to the DOD, they definitely will play second fiddle to the administration.”

Tom Wheeler, president and CEO of the Cellular Telecommunication & Internet Association, said he was encouraged by Commerce Secretary Donald Evans’ statement that the report is “one early step in an ongoing comprehensive process.”

“That process must include a dialog among all parties rather than the kind of unilateral assertion of the status quo put forth by the Defense Department,” Wheeler said in a statement.

The final reports are part of a mandate signed by former President Bill Clinton. He called on all government branches to identify suitable 3G spectrum by July and auction it by September 2002.