Wave Issue 2001 1/10/00 Article 9-01

***CTIA Offers Spectrum Advice to FCC
(December 15)

In a letter sent from CTIA's Tom Wheeler to FCC Chairman Kennard
regarding the service rules for the 746-764 and 776-794 MHz Bands
(Channels 60-69) (WT Docket No. 99-168) Wheeler warned the
Commission about the importance of their decisions on spectrum
use.

In response to a Congressional mandate, the FCC has reallocated
60 MHz of spectrum in the television broadcast band (channels 60-
69) for both public safety and commercial use. Congress has also
required this spectrum to be auctioned and licensed.

Mr. Wheeler stated his belief that the FCC could hamper
competition if they placed limits on the number of licensees
participating in the auction. This would result in a reduction of
auction and consumer market competition.

He also questioned:

-- Whether wireless carriers already existing in the
telecommunications market would be allowed to participate in the
auctions which would result in new services being built upon the
success of the CMRS regulatory structure.

-- How much spectrum would be available (would the FCC limit the
amount by assignment to non-commercial entities).

He then gave several suggestions for spectrum policy
restructuring:

* Guaranteeing at least three CMRS licenses in the 36 MHz of
spectrum in order to create opportunity for more competitors -
both in the auction (thus benefiting taxpayers) and in the market
(thus benefiting consumers). Adding that wireless industry
technical experts agree that the 36 MHz of spectrum is sufficient
for three blocks with adequate capacity for Third Generation CMRS
service.

* Prohibiting fewer than two licensees in each area in order to
provide technical flexibility and competition.

* Providing smaller, non-national licenses like regional
economic area groupings (REAG) that permit additional incumbent
CMRS carriers to fill out their geographic footprints, and
enhance competition.

He also outlined a new regulatory structure:

* The Commission has determined that the cellular and PCS CMRS
spectrum caps should not apply to new spectrum. By licensing
additional CMRS spectrum, the Commission creates additional
capacity and permits entry by new service providers. Sound
competition policy should consider the new services to be in a
different market space from traditional cellular and PCS CMRS
service. And by not applying the CMRS spectrum caps, the
Commission will permit more bidders and a more efficient auction
outcome without harming competition.

* Avoiding disparate regulatory treatment of like services, by
allowing licensees to declare the type of service they will offer
(i.e., fixed wireless or mobile wireless), and have the
appropriate rules apply.

He also encouraged the FCC to provide incentives to incumbents
(who can retain their licenses through 2006) to vacate the bands
before the deadline. This would encourage the development and
build out of Third Generation CMRS services. And to limit
licenses as Congress instructed - for commercial use as opposed
to allowing non-commercial use, i.e., private radio.

Mr. Wheeler closed with the belief that the Commission's actions
would determine whether Americans could participate in wireless
advancement or would have to watch the rest of the world conquer
the wireless revolution.

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