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700 MHz Broadband Development Committee
 

WCA News 2007

DECEMBER 20

FCC Names 700 MHz Spectrum Applicants
The FCC said it has accepted 96 applications and is waiting for another 170 to complete their applications to bid in the 700 MHz auction set to begin Jan. 24, 2008 in the U.S., reported Unstrung. According to the report, Google may not be the only new name that could break into broadband wireless through the 700 MHz auction. Many of the major wireless and cable operators such as AT&T, Alltel, Cablevisions Systems, Cox Communications, MetroPCS, LEAP are likely to bid on bandwidth. There are also many other companies looking for bandwidth, such as WCA members TowerStream and Qualcomm, and petrol giant Chevron. The list also includes individual investors such as Microsoft’s Paul Allen who has applied to bid through his Vulcan Ventures firm. The FCC extended to Jan. 4 the deadline for applicants to submit their upfront payments. Details.

NOVEMBER 20

Public Safety Spectrum Trust Named Broadband Licensee
The Public Safety Spectrum Trust Corporation (PSST), a non-profit established by national public safety leadership to oversee the creation of a nationwide wireless broadband network for public safety, was selected by the FCC to be the Public Safety Broadband Licensee (PSBL).  As a result, the PSST will hold a license for 10 MHz of public safety spectrum in the upper 700 MHz band designated for nationwide wireless broadband use.  Under the FCC’s 700 MHz rules, PSST’s 10 MHz will be combined with an adjacent 10 MHz of spectrum to be licensed to the commercial winner of the upper 700 MHz D Block auction.  The PSST last week released a Bidder Information Document, providing prospective D Block bidders with information about certain public safety expectations and preferences regarding the public-safety-commercial partnership.  The PSST anticipates releasing an updated version of this document, reflecting additional feedback, by Nov. 30, 2007.  The 700 MHz auction is set to begin on Jan. 24, 2008.  The PSST Board of Directors is comprised of representatives of several organizations, with the American Hospital Association (AHA), the National Fraternal Order of Police (NFOP), the National Association of State 9-1-1 Administrators (NASNA), and the National Emergency Management Association (NEMA) as the four at-large members to the PSBL’s board of directors.  The FCC said it will retain “significant oversight of the 700 MHz Public/Private Partnership, including monitoring negotiations and adjudicating disputes arising during the negotiation or implementation of the Network Sharing Agreement (NSA) -- to be executed between the PSBL and the commercial D Block auction winner -- and ultimately approving the NSA itself.  The PSBL, however, will bear a significant responsibility and play a substantial role in ensuring the success of the 700 MHz Public/Private Partnership.”  Details.

FCC Waives Portions Of ‘Designated Entity’ Eligibility Rules For Upper 700 MHz D Block
In an order released Thursday, the FCC waived one of its designated entity (DE) eligibility rules for the Upper 700 MHz D Block license, allowing a small business to qualify as a DE even if it leases or resells over 50% of its spectrum.  The single, nationwide Upper D Block license will be part of the 700 MHz Public Safety/Private Partnership with the 700 MHz Public Safety Broadband Licensee.  This Partnership is designed to enable the construction of a nationwide, interoperable broadband communications network for public safety.  According to Broadcasting & Cable, the decision makes it easier for Frontline Wireless to bid in the upcoming 700 MHz auction and for small companies in general to combine with larger ones and still get a break on the price of the spectrum.  Details.  Meanwhile, the window for filing short forms for the 700 MHz auction opened Monday and will close Dec. 3.  Upfront payments are due Dec. 28.  The auction is scheduled to start Jan. 24.

NOVEMBER 8
FCC Revises 700 MHz Band Procedures
The FCC issued a public notice, reducing from 15% to 10% the additional default payment percentage for the 700 MHz band D block and says it won’t rush to judgment in reaction to disputes in negotiating a network sharing agreement (NSA) between the prospective D-block licensee and the Public Safety Broadband Licensee, according to TR Daily, which further reported:  The Wireless Bureau had established an additional default payment percentage at 15% of the defaulted bid for all blocks not subject to package bidding.  That included the A, B, D, and E blocks.  The Wireless and Public Safety bureaus also issued further guidance on how they may proceed if the prospective D block licensee and the PSBL are unable to reach an NSA within the mandated six months.  The Commission said in its 700 MHz band order that one of the actions it may take is denying the long-form application of the winning D block bidder, subjecting it to a default payment.
NOVEMBER 1
WCA’s 700 MHz Committee Appoints New Chair, Sets Future Goals
Northrop Grumman has accepted an invitation to chair WCA’s 700 MHz Committee following a unanimously approved proposal to the association’s Executive Committee early last month that the Committee’s mission be endorsed as a key priority within WCA.  William Andrle, the company’s Vice President for Wireless Alliances and Spectrum Strategy within its Intelligence Group (TASC), has generously offered to commit time to the committee’s work, which comes at a particularly exciting juncture in the industry.  This change will streamline decision-making for the leadership of the committee, allowing other members to more effectively contribute to the effort.  Participants are invited to articulate their interests and a plan to achieve them via the economies of committee action.  As further background, the new chairman’s work at Northrop Grumman is heavily focused upon the band, and Northrop Grumman brings to the position a role as a technology-neutral systems integrator with a strong commitment to the overall goals of the association.  He has considerable experience with WCA, having served previously with great effectiveness on WCA’s Board of Directors as the representative from BellSouth and later from Nextel.
OCTOBER 11

AT&T Acquires Aloha's 700 MHz Spectrum For $2.5 Billion
AT&T announced Tuesday its board of directors has approved an agreement to purchase spectrum licenses covering 196 million people in the 700 MHz frequency band from Aloha Partners. AT&T will pay approximately $2.5 billion in cash for the licenses. The transaction enhances AT&T's spectrum position by adding 12 MHz of spectrum covering 196 million people in 281 markets. The spectrum covers many major metropolitan areas, including 72 of the top 100 and all of the top 10 markets in the United States. The company expects to close the transaction within six to nine months. Both AT&T and Aloha are WCA members. Details. Aloha Partners is the parent firm of DVB-H proponent Hiwire, which was the only remaining DVB-H operator in the U.S. after Crown Castle International announced earlier this year that it was planning to spin off its Modeo business and exit the market. Hiwire had launched a DVB-H trial in Las Vegas with partner T-Mobile USA.

700 MHz Spectrum Owner In Argentina Seeks Global Partners, Options After Aloha Sale
A 700 MHz spectrum holder in Argentina represented by WCA member MAXCOM is interested in working with potential partners to explore global opportunities underscored by this week's purchase by AT&T of the spectrum of Aloha Partners. The company's spectrum is in a market with a population of 10 million. MAXCOM's principal Walter Daniel Arneson invites other WCA members to contact him if interested in maximizing the spectrum's potential for broadband: warneson@maxcom.com.ar.

FCC Reschedules 700 MHz Auction To Jan. 24, Adopts Bidding Procedures
The FCC has rescheduled the start of its 700 MHz spectrum auction to Jan. 24 from Jan. 16, and announced minimum opening bids, reserve prices and other procedures for the sale. "This change of the previously announced start date for Auction 73 will provide interested parties with additional time after this announcement of competitive bidding procedures to develop business plans, assess market conditions and evaluate the availability of equipment for new 700 MHz band services," FCC said in a public notice.

Small CMRS Carriers Oppose 700 MHz Spectrum Auction Rules
More than 130 small and regional wireless carriers sent a letter to the U.S. Congress and the FCC urging them to abandon the current open-access rules. Details.

SEPTEMBER 20

U.S. Pushes To Set Aside 700 MHz Band For Advanced Services
The U.S. is urging that the 700 MHz band be identified for advanced wireless services, officially termed International Mobile Telecommunications (IMT). The U.S. is seeking global harmonization as it leads the digital TV transition. According to Richard Russell, ambassador to the upcoming ITU World Radiocommunications Conference, the U.S. isn't looking for a specific DTV transition timetable as "different countries have different dynamics" in their TV markets. Protecting the C-band is a major goal for the WRC and is gaining support in most places, but not Europe. Europe doesn't use the C-band, as do others, including the U.S. so it wants that spectrum identified for IMT. The satellite industry has worked hard against that, said Russell. Most of the controversy over the WRC agenda items is terrestrial versus satellite, passive versus active and incumbent versus new entrant.

Consolidation Of Lower 700 MHz Licenses Continues
LIN TV announced that it has entered into an agreement with WCA member Aloha Partners to sell 32 lower 700 MHz licenses for $32.5 million. The closing, which is expected to occur in the fourth quarter of 2007, is contingent upon approval of the FCC. Aloha is the largest owner of 700 MHz spectrum and is currently testing its mobile-TV services using the DVB-H standard in Las Vegas. If regulators approve the sale Aloha will have coverage in 85% of the top 100 media markets. The licenses Aloha plans to purchase from LIN TV are clustered in the Northeast and upper Midwest markets, as well as markets in south central Texas. LIN TV originally purchased the spectrum rights in FCC auctions 44 and 49 for $6.7 million.

Frontline, Cyren Call, Google Mulling 700 MHz Auction Plans
Frontline Wireless plans to participate in the FCC's 700 MHz band auction and is considering all of the blocks to be sold, Chairman Janice Obuchowski said, according to TR Daily. Although Obuchowski said her company wants to keep its options open as far as its bidding plans, most of her comments on the FCC's 700 MHz band order focused on the D block. For example, she noted the importance of the network sharing agreement that the D block licensee and public safety licensee will sign, calling it a "very, very important document" that will stipulate the cost and details of the network's build-out. Meanwhile, Cyren Call Communications Chairman Morgan O'Brien said his company would consider going after spectrum, as well, if it is not selected as an adviser to the national public safety broadband licensee. Both Frontline and Cyren Call are WCA members. Separately, an attorney for Google said the company is still mulling whether to bid in the 700 MHz auction. But he acknowledged that a Verizon Wireless lawsuit, petitions for reconsideration, and the specific auction rules remain unknowns in the process.

SEPTEMBER 13
700 MHz Round-Up: Verizon Sues On Open Access, Frontline Sees Bidder Creditor Crunch
Verizon Wireless filed a federal court suit against the FCC today challenging the Commission's 700 MHz open-access rules. "The move puts a cloud of uncertainty over the upcoming auction of more than a thousand wireless licenses in prime airwaves," as RCR Wireless reported, stating further: The mobile-phone industry was vigorously opposed to attaching conditions to any of the 700 MHz spectrum, but its position was undermined late in the rulemaking process when AT&T Inc. unexpectedly threw its support behind FCC Chairman Kevin Martin's 700 MHz plan. The plan requires winning bidders of the 22 MHz worth of licenses to permit any devices and application on their networks, as long as they don't harm the networks. The FCC last month attached open-access requirements to a 22 megahertz block of spectrum-a third of the spectrum set for auction in mid-January-as part of its controversial 700 MHz decision. 700 MHz Details via RCR.….In related news, Frontline Wireless filed comments with the FCC seeking a spectrum cap of 70 MHz per market as part of the competitive landscape before the 700 MHz auction. Also, economic consultants working with the company argued that the Commission should have set a reserve price of at most $2.1 billion instead of the current $10 billion requirement. They predicted that the rising cost of capital means spectrum-auction bidders will pay 50 percent more in interest to buy licenses in the 700 MHz band. The FCC based its 700 MHz reserve prices on the results of the Advanced Wireless Service auction. But this did not account for the impact on interest rates from the sub-prime meltdown, according to Frontline's consultants, Dr. Gregory Rosston of Stanford University and Dr. Peter Crampton of the University of Maryland.
March 22
FCC Commissioner Wants Early 700 MHz Auction
FCC Commissioner Robert McDowell last week called for an early 700 MHz auction, but he said today's timetable gives small and rural carriers time to prepare for bidding, according to Communications Daily. He told the publication he is sensitive to concerns of small carriers asking for lead time between auction rules' release and the auction's start to line up financing. "The fact that [the auction has] slipped from late summer to mid-fall is the extension of time they need. We are going to give [small carriers] time. Look for April or maybe May for the rules to come out and let's start the auction in October or November."
March 8

WCA Forms 700 MHz Committee & Launches Website
After months of planning WCA will announce tomorrow the formation of the association's 700 MHz Committee and the launch of a new website that will provide an authoritative overview of relevant information. Leaders of the committee are from WCA member companies Northrop Grumman, Pegasus Communications and Motorola, as indicated by the website: 700 MHz Committee. For balance, WCA is holding open also a leadership position for a WCA member company that is focused primarily on using the band for consumer-oriented services, such as a WiMAX network residences and businesses. Membership in the committee is open to all WCA member companies that have a strong interest in the band. Applicants and those with important relevant published materials should contact WCA's committee liaison, Susan Polyakova. The opportunities in the 700 MHz band and competing spectrum proposals before the FCC and Congress were described in an in-depth research report by Stifel Nicholaus & Co., Inc. last week entitled, "700 MHz: A Pivotal Auction." The report said in part: "The FCC's upcoming spectrum auction in the 700 MHz band is shaping up as a key event in the communications industry. It could open the door to new wireless broadband and video competition to the Bells and cable, but the incumbents appear likely to make a strong bid to acquire much of the spectrum."

Background on the opportunities presented by recently auctioned and newly available spectrum in 700 MHz band was summarized in a Stifel Nicholaus report released last week. Its principal author was analyst Rebecca Arbogast in cooperation with her analyst colleagues Blair Levin and David Kaut. It said, "The FCC is gearing up to auction 60 MHz of prime spectrum in the 700 MHz band in the second half of 2007, which we believe will be one of the most significant telecom events of the coming year due to its potential impact on core industry dynamics. The auction could be a pivotal event in the development of broadband competition for delivering voice, video, and data services to consumers, creating both opportunities and challenges for new entrants, incumbents, edge players, and equipment manufacturers. Because of its physical characteristics this spectrum, which is scheduled to be cleared of TV broadcasters by February 2009, presents an important opportunity for a new entrant to emerge as a national broadband competitor." The report continued: "We don't anticipate the auction will be postponed, but note the overhang posed by (a) proposals to redirect part or all of the spectrum for public safety use, (b) the unsettled status of the FCC small business credit used in the AWS auction, (c) a constitutional challenge to the budget bill that set a 'hard' deadline for TV broadcasters to vacate the spectrum, and (d) the risk that the DTV transition doesn't proceed apace." As noted above, WCA welcomes participation on the 700 MHz Committee, which plans weekly conference calls among its committee officers beginning next Wednesday, with a strong public role expected during WCA 2007.

"I know some critics would rather all of this [700 MHz] spectrum be auctioned solely for commercial applications, such as wireless Internet surfing, instant messaging and phone services. I can assure you...I do not lay awake at night wondering why my children can't surf the Internet on their cellphone from any location at any time, but I do worry about whether we will be adequately prepared to respond to the next disaster."
-- U.S. Sen. John McCain (R-AZ)


February 15
FCC Asked Not To Rush 700 MHz Auction
Aloha Partners asked the FCC to make sure there is enough time for potential 700 MHz auction bidders to put together financing after the Commission approves auction rules. "The timing of the auction does not need to be accelerated," the company said. "Wall Street investment bankers told us that they need 6 months from the date the rules are announced to…close on the funding." Congress last year required that the auction of spectrum returned by TV broadcasters as part of the DTV transition start by Jan. 28, 2008.

January 25
700 MHz Auction In Late Summer Seen Hurting Cyren Call Chances For Public Safety
An FCC auction in August or September for 700 MHz frequencies would probably prevent Cyren Call Communications from achieving its goal of a new law setting aside 30 MHz for public safety by overturning a Congressional mandate for auctions of all but 24 MHz of spectrum in the band, according to a Communications Daily report. The newsletter said that a tight time frame of the auction schedule gives the start-up Cyren Call less time to attain sufficient support in Congress for its proposal to add 30 MHz of new spectrum to an existing 24 MHz to be allocated for public safety under current planning for the auction of spectrum to be freed up from current DCT spectrum. The article quoted former FCC Chief of Staff Bryan Tramont as saying at WCA's Symposium that "Cyren Call has very little runway left to get sometime done." The newsletter reported also that major carriers tend to want an early auction, while small and mid-size carriers want delays in order to line up financing, especially after involvement in the Advanced Wireless Services auction at 1.7 and 2.3 GHz last summer.

 
 
 
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