By Gregory J. Vogt
I have been encouraged by recent government actions that
advance efforts to reallocate more spectrum for mobile broadband use. This forward
progress is essential in order to get closer to achieving the Administration’s
goal of allocating 500 MHz of new spectrum for such use. These efforts should
be continued in order to meet wireless broadband demand and to maintain the
currently robust competition for wireless broadband subscribers. But there are
clouds on the horizon that threaten to rain on this spectrum reallocation
parade.
The positive steps include the following.
First, Commissioner Rosenworcel should be praised for
“thinking outside the box” and encouraging
immediate exploration of additional spectrum at extremely high (above 60 to 90
GHz) and extremely low (e.g., 400 MHz) frequency bands. Concrete proposals in
these areas have not yet materialized, but given the lengthy time to market of
spectrum allocation decisions, which often take 10 years or more to complete,
this forward-thinking momentum is welcome. She has also laudably encouraged recent
discussions to make currently allocated spectrum more efficient, e.g. 50 to 100
times more efficient, an enticing visionary challenge.
Second, the FCC is moving forward expeditiously with the
AWS-3 auction. The FCC recently announced that more
than 80 bidders have filed their initial applications to participate in the
auction. Progress also appears to have been made concerning the responsiveness
of current government users to advance the speed of vacating their AWS-3 spectrum
as well as to improve the efficiency of spectrum sharing. Although in general sharing
spectrum with government users is not efficient, it is welcome news that
affected agencies appear to be cooperating better than they have in the past.
Third, some in Congress have been focusing on the need for
more wireless spectrum to be allocated both on a licensed and unlicensed basis.
Legislation introduced by Senator Rubio, for instance, is a forward-looking
attempt to reallocate spectrum for wireless use, which I detail here.
Fourth, Chairman Wheeler has
announced that he will ask the Commission to consider at the October
agenda meeting a Notice of Inquiry exploring how spectrum above 24 GHz can
accommodate wireless service. This is another laudable example of forward-looking
agency consideration of potential means to bring more spectrum to market.
Despite this good news, dark clouds are circling over the
FCC’s incentive auction. Last summer, the FCC established significant
elements of the ground rules for conducting an incentive auction, whereby
over-the-air broadcasters voluntarily give up spectrum, in exchange for a
portion of the price bid during the forward phase of the auction, ultimately
reallocating the volunteered broadcast spectrum for mobile broadband use. The
FCC adopted a number of rules that skewed the auction in favor of certain
bidders. As I outlined here, these
favored bidders are seeking yet more favorable treatment in petitions for
reconsideration of the incentive auction rules adopted. Granting these petitions
would further risk reducing the amount of spectrum volunteered and thus
available for broadband use.
Those dark clouds became even more menacing when the
National Association of Broadcasters filed an appeal of the incentive auction
rules, seeking changes to the way TV channels could be re-packed among
over-the-air broadcasters who choose not to participate in the auction. Although
the court of appeals was set to entertain expedited briefing, another appeal has
put a monkey-wrench in these plans, and serious delays could ensue. The
repacking issue will not necessarily delay the auction, but the issue nonetheless
poses a significant risk to the auction’s timing, and ultimately could impact
the willingness of broadcasters to volunteer spectrum in the first place.
Fortunately, the agency, I think somewhat out of character,
has been expediting a number of follow-on rulemakings to keep the incentive
auction on schedule. It has clarified its repacking rules, begun addressing use
of the guard band, and provided estimates and information to broadcasters as to
what revenues they can expect to achieve in an auction. Although some are
criticizing this valuation estimate effort, both as to its optimistic estimate
of expected broadcaster participation and the spectrum’s anticipated value, the
information provided does kick off a serious informational campaign to induce
active consideration by broadcasters. The Commission should join in Chairman
Wheeler’s apparent desire to keep the incentive auction on schedule.
Despite these positive events, more work must be done. Overall,
the amount of spectrum identified to meet the Administration’s goal of 500 MHz
is lagging. Recent reports, such as one from Recon
Analytics and one from Deloitte, demonstrate that more spectrum is
needed in the future.
I commend government for these recent steps to advance
reallocation of spectrum for mobile broadband use. But the Commission can and
should chase the dark clouds away from the incentive auction so that the
interest of consumers can be served: more wireless broadband spectrum to meet
consumers’ seemingly insatiable demand for mobile broadband.
Don’t let the rain fall on this reallocation parade.