"FCC Proposes to Remove Barriers to Terrestrial Use of MSS Spectrum
R. Michael Senkowski, Peter D. Shields and Jennifer D. Hindin
Today the Federal Communications Commission (FCC or the Commission) released a Notice of Proposed Rulemaking (NPRM) and Notice of Inquiry (NOI) seeking to remove regulatory barriers to terrestrial use in 90 megahertz of spectrum allocated to the Mobile Satellite Service (MSS).
The Commission aims to make this spectrum available for new investment in mobile broadband networks while retaining sufficient market-wide MSS capability.
The NPRM makes two proposals. First, the Commission proposes to add primary Fixed and Mobile allocations to the 2000-2020 MHz and 2180-2200 MHz bands.
Second, the Commission proposes to apply its terrestrial secondary market spectrum leasing rules and procedures to transactions involving terrestrial use of MSS spectrum in the 2 GHz, Big LEO and L-bands.
In the NOI, the FCC launches a broader inquiry on further steps it can take to increase the value, utilization, innovation and investment in the spectrum for terrestrial services throughout the 2 GHz, Big LEO and L-bands, while ensuring that the U.S. market, as a whole, retains robust MSS capabilities.
2 GHz MSS Band Allocation Proposal. The Commission proposes adding to the table of allocations Fixed and Mobile allocations for the 2000-2020 MHz and 2180-2200 MHz bands that would be co-primary with the existing Mobile-Satellite allocation for these bands. Although this addition would not itself make any new licenses or services available in these bands, it would make possible future terrestrial licensing in this band that is not bound by the Commission's MSS/Ancillary Terrestrial Component (ATC) rules.
The Commission does not propose to change any of its rules regarding the relocations of incumbent BAS and FS licensees in this band, whose operations will still become secondary on December 9, 2013.
The addition of primary Fixed and Mobile allocations does not change the application of existing service rules for the MSS and ATC operations authorized in the 2 GHz band. Thus, existing licensees must continue to comply with these rules and any other terms of their licenses.
But the Commission indicates in the NPRM that if one or both of the 2 GHz MSS licenses were to be returned or cancelled for any reason, the returned spectrum could be used for Terrestrial Wireless Broadband deployment.
Indeed, if a 2 GHz MSS License is returned or cancelled, the spectrum covered by that license would not be assigned to the remaining licensee or made available for new MSS or other satellite services.
Proposal to Apply Secondary Market Rules and Procedures for Terrestrial Services in MSS Bands. The Commission's second proposal is to subject spectrum leasing arrangements between an MSS operator and a third party entity involving the use of MSS Spectrum for the provision of terrestrial services to the FCC's general Secondary Market Spectrum Leasing Policies and rules that currently apply to wireless terrestrial services.
The Commission specifically notes that this proposal would apply to all terrestrial use of MSS spectrum, which is currently limited to ATC operations, but in the future may include other terrestrial operations in the 2 GHz band pursuant to the new Fixed and Mobile allocations proposed above.
The secondary market rules would not apply to MSS Leasing arrangements that do not involve spectrum associated with terrestrial operations.
The Commission's secondary market rules allow exclusive licensees to lease some or all of their spectrum usage rights to third parties and provide for immediate approval procedures for leasing arrangements that do not raise potential public interest concerns, and streamlined review procedures for all other leasing arrangements.
Importantly, under the secondary market rules, all technical, interference, operational and other service rules applicable to the licensee apply to the spectrum lessee as well.
By subjecting MSS/ATC Spectrum Leasing arrangements to the secondary market rules, including the streamlined approval processes, the Commission expects that MSS licensees and their lessees will use their ATC Authority to provide mobile broadband services that are competitive with those offered by Terrestrial Mobile Broadband providers.
It is worth noting that the spectrum leases contemplated would still be constrained by the Commission's ATC rules, including the requirement that ATC operators offer an integrated service, which has generally required the use of dual-mode satellite/terrestrial mobile devices. Additionally, MSS/ATC lessees would be subject to other ATC service rules, such as those in place to protect adjacent services like Aeronautical Mobile-Satellite (Route) Service (AMS(R)S) and Global Positioning System (GPS).
The Commission proposes to require that leasing parties submit specified information and certifications in advance of consummating the proposed transaction and indicates that to the extent a proposed arrangement does not raise potential public interest concerns it would be subject to immediate processing or approval. However, the Commission seeks comment on what considerations should be taken into account when determining the potential competitive harms of a proposed transaction.
Recently, the Commission conditioned the acquisition by Harbinger Capital Partners Funds of L-band MSS provider SkyTerra on adherence to certain voluntary commitments that, among other provisions, limited the combined company's ability to enter into spectrum leasing arrangements with the two largest mobile operators.
Inquiry Regarding Use of the 2 GHz Band for Terrestrial Services. In the NOI, the FCC seeks comment on how best to encourage the growth of new mobile broadband services in the 2 GHz Band under the proposed co-primary Fixed and Mobile allocations in a way that will attract investment.
The Commission specifically requests comment on whether voluntary incentive auctions-if Congress were to grant such authority to the FCC-would be an appropriate mechanism to allow incumbent 2 GHz MSS licensees to vacate the band in favor of mobile broadband providers operating on new licenses.
Alternatively, the FCC also asks whether there are other approaches that could create licenses that would attract the substantial investment necessary to launch new mobile broadband services in the 2 GHz band and that are within the FCC's existing authority.
For example, the FCC asks whether existing 2 GHz MSS licensees should be given the option to return some of their spectrum (which could then be auctioned to new terrestrial licensees) while concurrently modifying the MSS licensees' authorizations to allow them to operate terrestrial networks under the proposed Fixed and Mobile allocations instead of under the current ATC service rules.
The Commission also asks whether, under any of these approaches, the opportunity to integrate the J Block and 2 GHz MSS Spectrum would help attract new investment and utilization of new mobile broadband networks in the 2 GHz band.
Inquiry Regarding All MSS Bands.
The Commission asks whether there are any other FCC actions that would increase terrestrial use of the MSS bands, particularly actions that would specifically apply to the Big LEO or L-bands.
The FCC asks whether there are incentives that it could apply to help ensure that the public receives the maximum benefits from the use of the spectrum.
In a footnote, the Commission references the various incentive proposals raised in the National Broadband Plan, including incentive auctions, spectrum fees and secondary market incentives.
In addition, the Commission requests comment on the deployment of satellite and terrestrial services in the MSS bands, both within the U.S. and internationally.
The Commission also asks how it should assess the current and future spectrum needs for MSS so that it can assure those needs continue to be met.
The Commission seeks comment on the extent to which such services can coexist with terrestrial uses in areas that do not rely as heavily upon MSS.
And the FCC also inquires as to how it can ensure that the U.S. continues to have market-wide MSS capabilities. "
Source of MSS Spectrum Post
MSS Spectrum - Wiping Out Markets, Selling Air ?
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