Upcoming FCC Spectrum Auctions

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Upcoming FCC Spectrum Auctions

• Bryan N. TramontWilkinson Barker Knauer,
  LLPwww.wbklaw.com

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Upcoming Spectrum Auctions/Opportunities

• AWS-1 90 MHz scheduled for June 29, 2006
• 700 MHz 60 MHz legislation requires FCC to
  begin auction by Jan. 28, 2008 (broadcasters will
  exit the band by Feb. 2009)
• AWS-2 40 MHz service rules not yet set
  auction not yet scheduled
• To put this 190 MHz in perspective, approximately
  180 MHz of spectrum is currently allocated for
  all of cellular/PCS
• Other spectrum opportunities include BRS/EBS,
  3650-3700 MHz, and White Spaces

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AWS-1 Auction History

• November 2002 FCC allocates AWS-1 spectrum
• November 2003 FCC adopts initial band plan and
  service rules for AWS-1
• December 2004 Commercial Spectrum Enhancement
  Act (CSEA) becomes law
• Establishes Spectrum Relocation Trust Fund and
  sets reserve price mechanism for spectrum, tied
  to NTIA estimate
• August 2005 On reconsideration, FCC revisits
  AWS-1 band plan to make more spectrum available
  in smaller areas, and promises rule making
  proceeding on Designated Entity (DE) issues
• December 2005 NTIA produces estimate of
  relocation costs (as required by CSEA)
• Estimate lower than anticipated
• CSEA requires six month period before auction can
  begin
• January 2006 FCC schedules AWS-1 auction to
  begin on June 29, 2006
• February 2006 FCC initiates NPRM to evaluate DE
  program
• April 2006 FCC announces that typical bidder
  information available after each bidding round
  will likely be withheld in this auction
• April 2006 FCC also substantially limits DEs
  ability to lease or resell spectrum acquired in
  the AWS-1 auction

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AWS-1 Band Plan (adopted August 2005)

• BLOCK FREQUENCIES (MHz)
  SVC. OF LICENSES
• 
  AREA
• Block A 20 MHz 1710-1720/2110-2120 MSA/RSA
  734 licenses
• Block B 20 MHz 1720-1730/2120-2130 EA 176
  licenses
• Block C 10 MHz 1730-1735/2130-2135 EA 176
  licenses
• Block D 10 MHz 1735-1740/2135-2140 REAG
  12 licenses
• Block E 10 MHz 1740-1745/2140-2145 REAG
  12 licenses
• Block F 20 MHz 1745-1755/2145-2155 REAG
  12 licenses
• TOTAL 1122 licenses

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AWS-1 License Areas
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AWS-1 Specific Issues

• Auction Procedures
• Revised Designated Entity Rules
• Incumbent Relocation

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Auction Procedures

• Auction Procedures Proceeding
• Short form applications were filed May 10, 2006
  FCC to release list of applicants soon
• Typical bidder identity information available
  after each bidding round likely to be withheld in
  this auction
• Auction must raise 110 of CSEA Relocation costs
  for auction of 1710-1755 (1.029 billion). Total
  revenue from paired blocks must exceed 2.06
  billion

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Bidding Credits DE

• Two tiers of DEs
• Small Business
• 15 bidding credit
• 40 million in revenue (average gross revenue
  past three years)
• Very Small Business
• 25 bidding credit
• 15 million in revenue (average gross revenue
  past three years)
• No spectrum set aside in this auction

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Bidding Credits DE

• Designated Entity (DE) Rulemaking
• NRPM Feb. 3, 2006 Order April 25, 2006
• The FCC decided not to adopt specific
  restrictions on the ability of bidders that
  qualify for bidding credits to partner with any
  group or class of investors, but it substantially
  limited their ability to lease spectrum or offer
  it for resale.
• The FCC adopted a 2nd Further Notice seeking
  comment on whether additional restrictions are
  warranted to safeguard the DE program and DE
  benefits.

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Incumbent Relocation1710-1755 MHz USG
Operations

• Relocation funded by auction proceeds
• 2240 assignments to be relocated
• Includes 904 fixed systems, 12 nationwide
  systems, 460 mobile systems
• 31 DoD classified systems
• Location, frequency unknown
• 21 will be relocated within 12 months 49
  within 24 months 90 within 36 months and 96
  within 48 months
• FCC/NTIA established coordination procedure to
  allow AWS licensees to begin service during the
  transition without causing harmful interference
  to federal operations.
• Interference analysis based on TIA Bulletin 10F

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Incumbent Relocation 2110-2150 MHz Microwave
Links

• Approximately 5,500 links to be relocated
• AWS licensee to perform a frequency coordination
  analysis in the event of interference, the
  incumbent must be relocated prior to AWS
  operation.
• Rules are largely identical to the rules used to
  relocate fixed services from the PCS bands
  beginning in the mid 90s.
• But now rolling date will begin 2-year
  mandatory negotiation period for each incumbent
  facility, triggered by new entrant
• Involuntary relocation follows mandatory period
  incumbent is entitled to comparable facilities
  only
• Relocation rules will sunset 10 years after the
  first AWS license is issued.

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Incumbent Relocation2150-2155 MHz BRS

• Approximately 30-50 BRS systems to be relocated
• AWS licensee to determine whether proposed
  facility will cause interference if so, AWS must
  relocate the incumbent (both hub and subscribers)
  prior to AWS operations
• Rolling date will begin 3-year mandatory
  negotiation period, followed by involuntary
  relocation period
• Relocation rules will sunset 15 years after the
  first AWS license is issued

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700 MHz Band

• Congress decreed broadcasters must turn back
  analog broadcast spectrum in the 700 MHz spectrum
  band by February 19, 2009
• 108 MHz (698-806 MHz)
• 24 MHz has already been allocated to public
  safety
• 24 MHz has already been auctioned for commercial
  use
• The remaining 60 MHz must be auctioned no later
  than January 28, 2008

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700 MHz Band Plan60 MHz of Spectrum to be
Auctioned
BLOCK FREQUENCIES (MHz) SVC.
AREA OF LICENSES Lower Block A
698-704/728-734 EAG 6
licenses Lower Block B 704-710/734-740
EAG 6 licenses Lower Block E 722-728
EAG 6 licenses Upper Block C
747-752/777-782 EAG 6 licenses Upper Block
D 752-762/782-792 EAG 6 licenses
TOTAL 30 licenses
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700 MHz Issues to Watch

• Led by Morgan OBrien, Cyren Call Communications
  filed a petition for rulemaking in April 2006
  with the FCC asking to reallocate 30 of the 60
  MHz to public safety and issue a single
  nationwide license to a trust that would auction
  off rights to lease spectrum and build out a
  public safety broadband in exchange for the right
  to commercial use
• In July 2005 Rural Cellular Association asked the
  FCC to revisit the 700 MHz license area sizes and
  provide for smaller area licenses
• In the 24 MHz of spectrum previously auctioned
  700 MHz spectrum, the 6 MHz Guard Band spectrum
  may be reassessed some licenses available for
  repurposing (Nextel returned much of it in the
  800 MHz re-banding proceeding)

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Other Spectrum Opportunities

• BRS/EBS (2.5 GHz)
• Band plan conversion
• Relocation of MDS Channels 1 2
• White Spaces (in broadcast spectrum)
• FCC NPRM on whether to allow unlicensed devices
  to operate on a non-interference basis in the TV
  spectrum
• Legislative proposals pending

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Other Spectrum Opportunities

• AWS-2
• H Block (1915-1920/1995-2000 MHz) and J Block
  (2020-2025/2175-2180 MHz) service and technical
  rule proceeding initiated in 2004
• 2155-2175 reallocated to AWS in 2005
• May 2005 M2Z filing seeks nationwide license to
  offer free broadband service
• 3650-3700 MHz
• Order adopted in 2005 creating non-exclusive
  licensing regime for broadband or backhaul
  offering with new interference mitigation
  technique
• Petitions for reconsideration pending

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For additional information

• Bryan N. Tramont
• btramont_at_wbklaw.com
• 202-383-3331
• Wilkinson Barker Knauer, LLP
• 2300 N Street, NW Suite 700
• Washington DC 20037
• P 202-783-4141 F 202-783-5851
• www.wbklaw.com