MMDS/ITFS licenses are safe, FCC adds mobile allocation

The FCC (www.fcc.gov) announced that MMDS/ITFS licenses would not be relocated to make way for 3G mobile services and also added a mobile allocation to the spectrum in question -- the 2.5GHz to 2.69GHz band.

In its order which was adopted Sept. 6 and released Monday, the FCC noted the mobile allocation is expected to result in the development of new and innovative technology and services in much the same way that its 1998 decision to allow 2-way digital services in the band led to the development of fixed-wireless broadband services.

The mobile allocation applies to existing holders of the licenses and does not permit mobile use of the band by new service providers.

In truth, the sharing of the band between fixed and mobile, with the possible exception of portable services, is apparently not feasible at this time because of technical constraints and service rules. The FCC said it would have to explore in the future the service rules that would apply to permit mobile operations in the band without causing interference to the current fixed services.

“We emphasize that if fixed and mobile sharing of the band continues to be infeasible in the long run, our service rules would ensure the protection of fixed operations,” the FCC order states.

The FCC also took exception to concerns from AT&T (www.attws.com) that allocating a portion of the band to mobility would represent a “windfall” to incumbent MMDS/ITFS licensees. It granted that incumbent license holders may enjoy some benefits from the mobile allocation, but added that permitting use of the band by new mobile service providers would hold a risk of disrupting the incumbent fixed operations.

An AT&T Wireless spokesperson said Monday it had no further comment on the issue.

Two commission members also questioned the mobile allocation. In a joint statement, Commissioners Gloria Tristani (who left the FCC after the Sept. 6 vote) and Michael J. Copps said they applauded removing the “cloud of uncertainty” from the band by not relocating the current licensees, but questioned how the mobile allocation would serve the public interest. The two were concerned that the mobile allocation could undermine broadband applications particularly when it comes to providing broadband services in rural areas. They also raised the question of interference, suggesting that the commission should have addressed service rules allowing co-existence of mobile and broadband services in the band before approving the flexible use of spectrum.

Peter Jarich, Strategis Group (www.strategisgroup.com) director of broadband research, said it appears the FCC is saying the marketplace should make the decision.

“These guys own the spectrum, and if the market decides that’s where they want 3G to go, they can buy it or the people there can use it,” Jarich said, although he wasn’t sure how buying or leasing spectrum fits with the “no new entrants” stipulation.

The big question, according to Jarich, is what Sprint (www.sprint.com) and WorldCom (www.worldcom.com) will do now. The two are the biggest owners of MMDS/ITFS spectrum in the United States, paying billions for the licenses. Those licenses could turn out to be a real bargain compared to cost of 3G licenses in other countries, Jarich said.

Julie Moore, WorldCom spokesperson, said WorldCom had no comment on the mobile allocation for the band, but added the decision to leave the licenses where they are will ensure that operators like WorldCom can more forward more aggressively in the wireless-broadband market. However Jarich suggested the mobile allocation is particularly interesting for WorldCom.

“We all know that (mobility) was a major reason for (WorldCom) getting in bed with Sprint,” he said. “This opens new options for them.”

The FCC decision was a sweet victory for the Wireless Communications Association (www.wcai.com), which has been spearheading the fight to get the licenses off the 3G table. Andrew Kreig, WCA president, called it a ”triumph of thoughtful policy making.”

As for the mobile allocation, Kreig said it’s a matter of semantics.

“If you have a laptop computer, and you use it in your den, and then you use it on your porch, is that fixed or mobile?” he asked, saying that portability is one of the most likely applications in the band. “The FCC did need to apply a flexibility component to cover these possibilities,” Kreig said.

On the other hand, CTIA (www.wow-com.com) expressed its disappointment at the FCC decision, saying the action tries to have it both ways, but does not help to address the continuing need for spectrum by the most spectrum-constrained carriers.

"We need to break with the piecemeal spectrum decision-making of the past,” said Tom Wheeler, CTIA president & CEO. “Even the most well-intentioned actions have consequences that impact future decisions."