Hands Off Our MMDS

Holders of MMDS and ITFS (Instructional Television Fixed Services) licenses have more than a passing interest in the FCC's (www.fcc.gov) pending decision regarding which spectrum should be allocated for 3G services. After all, one of the proposals on the table is to use the spectrum in the 2.1GHz and 2.5GHz bands that belongs to them.

The commission recently asked for comments on whether it should displace some or all of the current licensees in these bands to provide more spectrum for 3G mobile services. It also is looking at the 1.7GHz band.

Not surprisingly, carriers such as Sprint (www.sprint.com), WorldCom (www.wcom.com) and Nucentrix (www.nucentrix.com), the three largest holders of MMDS licenses, are opposed to giving up any spectrum.

In its comments, Sprint pointed out that allowing 3G operators to share these bands would “irreparably compromise Sprint's multibillion dollar investment.” Sprint holds interests in more than 90 markets covering 30 million households, including leased capacity of 1,395 ITFS channels. Although Sprint PCS would be offering 3G services, Sprint urged the FCC not to promote 3G at the expense of incumbent licensees.

At the 2001 Broadband Wireless World Forum (BWWF) in February, Robert Kaiser, WorldCom Broadband Solutions president & CEO, said he was confident the MMDS spectrum would remain intact. In its comments to the FCC, WorldCom said it was time to “eliminate the cloud of uncertainty that currently hangs over the MMDS/ITFS industries” by removing the MMDS/ITFS bands from active consideration. WorldCom indicated there was virtually no support in any of the comments for re-allocating any portion of the 2.5GHz-to-2.69GHz band for 3G services.

Many mobile wireless carriers seemed more interested in the 1.7GHz band, which is also of interest to groups such as the Canadian Wireless Telecommunications Association (www.cwta.ca) and the Radio Advisory (www.rabc.ottawa.on.ca) Board of Canada. However, some U.S. wireless carriers were eager for as much spectrum as possible.

Verizon (www.verizon.com) recommended allocating the entire 1.7GHz and 2.1GHz bands for 3G; relocating MMDS services or, at a minimum, moving them to the 2,155MHz-to-2,165MHz band; re-allocating substantial portions of the 1,755MHz-to-1,850MHz band and harmonizing it with 3G allocations worldwide; and re-allocating and auctioning a minimum of 60GHz of spectrum from within the 2.5GHz-to-2.66GHz band to make it available for 3G.

The Wireless Communications Association (www.wcai.com), which represents fixed-wireless broadband operators, voiced strong opposition to taking the 2.1GHz and 2.5GHz spectrum. It said the bands are not large enough for both 3G and fixed broadband services, and segmenting the band would “sound the death knell for many of the advanced fixed-wireless systems that are bringing broadband access to the unserved and underserved.”

During the BBWF, James McIlree, Tucker Anthony senior analyst (www.tuckeranthonysutro.com), noted that carriers such as Sprint and WorldCom, and vendors leveraged to them, swear up and down that there will be no take-away of the MMDS spectrum. He agreed that was probably a good bet, but added this caveat: “The FCC doesn't just float trial balloons like this — with a lot of man hours and documentation — on a whim …”

James Friedland, Robertson Stephens vice president & senior analyst (www.robertsonstephens.com), told the same audience it would not be easy to yank spectrum from two of the biggest U.S. telecom operators.

“The argument could be made, ‘Look you wouldn't let us merge; you have to let us compete. By taking away spectrum; you're taking away our ability to compete, so how can you do that?’” Friedland speculated. “That would probably put the issue to rest.”