Pegasus Backgrounder on FCC Proceedings:
(1) 700 MHz NPRM's: There are currently four NPRM's open concerning the 700 MHz frequency band - (i) The initial Public Safety NPRM (96-86) issued in March, 2006 which is addressed to enabling broadband in the Public Safety 700 MHz spectrum; (ii) The 700 MHz Guardband NPRM (06-169) issued in October, 2006 dealing with issues raised in an Access Spectrum/Pegasus White Paper filed in 3Q '05; (iii) The commercial 700 MHz NPRM (06-150) issued in September, 2006 dealing with questions concerning the channel widths and geographic license sizes of the 700 MHz spectrum to be auctioned later this year; and (iv) a second Public Safety NPRM (the so-called "Ninth NPRM") issued in December, 2006 and addressing whether to delegate allocation of Public Safety 700 MHz spectrum to a national body who would also have authority to allow mixed-use of Public Safety and commercial spectrum.
(2) Pegasus/Access Spectrum "Broadband Optimization Plan" (BOP): Pegasus, Access Spectrum, Columbia Capital and Intel filed the so-called "Broadband Optimization Plan" (BOP) in June, 2006 in the 96-86 Public Safety NPRM. The BOP proposes three significant changes to the existing 700 MHz Public Safety and Guardband allocations: (i) It re-allocates the Public Safety 700 MHz spectrum to concentrate the Public Safety narrowband allocation in a 6 MHz pair at the upper end of the PS allocation, in contrast to the existing allocation comprising two 3 MHz pairs at the upper and lower ends of the PS allocation. (ii) It augments the PS 700 MHz allocation by 3 MHz (from 24 MHz to 27 MHz) by re-allocating 3 MHz from the 700 MHz Guardband B band to PS. (iii) It allocates the remainding 1 MHz of the Guardband B band to the existing Guardband A band (making the re-banded A band a 1.5 MHz pair), moves this spectrum to a place between the commercial Upper 700 MHz C band and the re-banded PS broadband spectrum, and conforms the technical rules for the re-banded A band to those for the C and D bands. The cumulative effect of these changes is to (a) maintain the PS narrowband allocation at a 6 MHz pair, (b) reduce the guardbands required to protect PS narrowband from interference to 3 MHz from 10 MHz, (c) authorize PS 700 MHz for broadband and increase the PS spectrum available for broadband from a 4 MHz pair to a 5.5 MHz pair, (d) put PS broadband contiguous to commercial broadband thereby enabling the potential of commercial/PS "mixed-use" broadband networks, and (e) afford PS the flexibility to choose either 3G or 4G broadband technologies (eg. W-CDMA, EVDO, WiMAX or 4G extensions of W-CDMA or EVDO if and when they become available). Substantially all of the commenters active in the 96-86 NPRM have publicly expressed support for adoption of the BOP. (This includes APCO, NPSTC, NY State and a substantial number of regional planning committees, Motorola and MA/COM.)
(3) 700 MHz Auction: The FCC is legislatively mandated to auction the remaining 700 MHz commercial spectrum (30 MHz in the Lower 700 MHz and 30 MHz in the Upper 700 MHz) so as to complete the auction by January, 2008 and to deposit the proceeds in the Treasury by June, 2008. It is currently believed that the FCC is hoping to begin the 700 MHz auction by the end of 3Q '07. To accomplish this, it is expected that the FCC will seek to issue auction rules by summer '07. Obviously, the auction rules cannot be finalized unless and until the 06-150, 06-169 and 96-86 NPRM's are completed.
(4) Pegasus/Access Spectrum "Commercial Broadband Optimization Plan"
(Commercial BOP): In October, 2006 Pegasus, Access Spectrum, Columbia Capital and Telecom Ventures filed their so-called "Commercial BOP" in the 06-150 NPRM. The commercial BOP builds on the foundations of the BOP (ie. assumes adoption of the BOP in the 06-169 and 96-86 NPRM's) and proposes four changes to the 700 MHz auction: (i) re-channelize the Upper 700 MHz into three 5.5 MHz channel pairs (total of 33 MHz comprising the current C and D bands and the re-banded A band); (ii) auction these channels on an MEA basis (consistent with the licensing of the Guardband A and B bands); (iii) Allow constrained, packaged bidding (allow bidders to submit bids for designated groups of MEA's and designated combinations of the three 5.5 MHz pairs); and (iv) Provide tax credits to commercial licensees agreeing to construct and operate commercial/Public Safety "mixed use" broadband networks. The A band licensees would allow their licenses to be included in the auction pursuant to "two-sided auction" rules. The arguments in favor of this approach are: (a) It creates 44 MHz of spectrum in the Upper 700 MHz licensed for broadband (three commercial 5.5 MHz pairs and one Public Safety 5.5 MHz pair); (b) It auctions the commercial Upper 700 MHz licenses in a way that allows bidders broad discretion in the choice of geographic and spectrum parameters; (c) It does not favor particular 3G or 4G technologies; and (d) It incentivizes the creation of commercial/Public Safety mixed use networks. Since the submission of the Commercial BOP, Intel has filed an ex parte expressing its public support for adoption of the Commercial BOP.
The goal of WCA's 700 MHz Committee is to illustrate and expand opportunities in the frequency band by fostering widespread development of broadband technologies valued by the public, whether as individual consumers, businesses, or enterprise networks (both public and private). To attain this goal, the Committee will use the economies of group action by drawing from the collective expertise and interests of WCA's diverse members to create convenient channels for business development, education and advocacy.
Stifel Nicholaus