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Spectrum 101. Bryan Tramont NARUC November 13, 2007. What is Spectrum?. What is Spectrum?.

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spectrum 101

Spectrum 101

Bryan Tramont

NARUC

November 13, 2007

what is spectrum3
What is Spectrum?
  • Electromagnetic spectrum is the range of all possible electromagnetic radiation. The radio spectrum is that subset of the electromagnetic spectrum that can be used for the transmission of communications.
  • Radio waves of different lengths are usually identified by their frequency and can be employed for different purposes.
why does the government regulate spectrum use5
Why Does the Government Regulate Spectrum Use?
  • 1899: Marconi at America’s Cup
  • 1910: “Etheric bedlam” – light regulation ensues
    • “The claim has been made that any precise regulation of radio communication, in view of the undeveloped stage of the art, will necessarily retard the progress of science and diminish the usefulness to mankind of the invention.” -- 1912 Senate Report
  • 1912: Titanic sinks
why does the government regulate spectrum use6
Why Does the Government Regulate Spectrum Use?
  • Radio Act of 1912
  • 1920’s: Broadcast growth
    • 60 stations (Mar. 1922) to 564 (Oct. 1922)
  • Cracks in the regulatory regime
    • Hoover v. Intercity Radio (D.C. Cir. 1923)
    • U.S. v. Zenith Radio Corp. (N.D. Ill 1926)
  • Radio Act of 1927 (FRC)
  • Finally, Communications Act of 1934
who is in charge of spectrum8
Who is in Charge of Spectrum?
  • Independent Agency
  • Commercial Licenses
  • State and Local Public Safety
who is in charge of spectrum10
Who is in Charge of Spectrum?
  • Part of Administration
  • Federal Government Users
  • Interdepartment Radio Advisory Committee
who is in charge of spectrum11
Who is in Charge of Spectrum?

John M. R. Kneuer

Clifton Beck / Tony Calza

Karl Nebbia

Meredith Attwell Baker

James Wasilewski

Todd Sedmak

Bernadette McGuire-Rivera

Al Vincent

Eric R. Stark

Kathy Smith

who is in charge of spectrum12
U.N. Specialized Agency

Hosts World Radiocommunications Conferences (“WRC”)

Responsible for:

International harmonization

Satellite prioritization

Organization

Secretary General

Radiocommunication

Standardization

Development

Who is in Charge of Spectrum?
current domestic spectrum use
Current Domestic Spectrum Use
  • 7% Federal Government - only
  • 30% Non-Federal (Commercial, State & Local) - only
  • 63 % Shared
spectrum up close
Spectrum: Up Close

AWS

SDARS

2.4 GHz

how is commercial spectrum use determined
How is Commercial Spectrum Use Determined?
  • Allocation
  • Service and Technical Rules
  • Rights Distribution
allocation
Allocation
  • Broad categories of uses: Fixed, Mobile, Satellite, etc.
  • Designed to group like uses with like uses – limit interference
  • Usually consistent with International Regime (esp. for Satellite)
    • Broader government actors responsible for international process (FCC, NTIA, State, Defense)
    • Harmonization also promotes economies of scale
    • Roaming
  • Allocation – (traditionally an OET function)
service and technical rules
Service and Technical Rules
  • More specific rules of the road
  • Economic Policy – traditionally many rules created to generate public policy goal: spectrum cap, ownership restrictions, use restrictions, build out requirements
  • Interference Policy – drives many technical rules; power limits, coordination requirements
  • Social Policy – E911, CALEA, foreign ownership
rights distribution
Rights Distribution
  • Originally allocation and service rules that were highly prescriptive and dictated outcome of rights distribution – NO LONGER
  • Lots of choices and approaches contemplated by the FCC
    • Everyone can use?
    • First-come, first-served?
    • Everyone gets a cut?
    • Beauty contest?
    • Lottery?
    • Auctions?
    • Others?
  • Dominant policy paradigms are auction of property rights and the Commons
rights distribution today
Rights Distribution Today
  • Two Main Schools of Thought
    • Property Rights (Lawyer’s Dream)
      • Exclusive use rights, protection from interference
    • Commons (Engineer’s Dream)
      • Shared use, must accept interference
  • Titanic Struggle – not really partisan
    • Property Rights – incumbent licensees, some new entrants
    • Commons – technology companies, some new entrants, grassroots
rights distribution today property rights model
Rights Distribution Today: Property Rights Model
  • If no mutually exclusive applications, give it away (site-based, etc)
  • If mutually exclusive, then auction, unless…
  • § 309(j)
    • Exemptions for:
      • Public Safety
      • International Satellite
      • Noncommercial Educational Broadcasters
rights distribution today commons
Rights Distribution Today: Commons
  • Risk of Tragedy of the Commons
  • Bands generally allow for low power transmissions with no interference protection
  • Traditional “junk” bands – baby monitors, garage door openers, etc.
  • Part 15 – regulates these devices –
    • Rules since 1938
    • New bands in 1989
    • Current boom
  • Three main bands today
    • 902-928 MHz
    • 2400-2483 MHz
    • 5 GHz
  • White Spaces
what is 700 mhz27
What is 700 MHz?
  • 108 MHz (698-806 MHz) Allocated to Broadcast, Mobile and Fixed Services.
    • Occupied by broadcasters (TV Channels 52-69)
    • 24 MHz already licensed to commercial interests
    • 24 MHz to Public Safety
    • 62 MHz to be auctioned (2 MHz returned from original auction)
  • 2005 DTV Transition and Public Safety Act
    • Firm DTV Transition Deadline – 02/17/09
    • Auction 60 MHz – no later than 01/28/08
    • Auction proceeds must be deposited into DTV Fund – no later than 06/30/08
    • $10 billion in auction proceeds dedicated to DTV converter box program, public safety interoperability, US Treasury etc.
what is 700 mhz28
What is 700 MHz?
  • Auction Scheduled for Jan. 24, 2007
  • 62 MHz to be auctioned in 5 spectrum blocks covering various geographic areas
    • Lower 700 A – 12 MHz – 176 EA licenses
    • Lower 700 B – 12 MHz – 734 CMA (MSA/RSA) licenses
    • Lower 700 E – 6 MHz – 176 EA licenses
    • Upper 700 C – 22 MHz – 12 REAG licenses (Open Platform)
    • Upper 700 D – 10 MHz – nationwide license (public/private)
700 mhz new requirements
700 MHz: New Requirements
  • Upper C Block
    • Open Platform for Devices and Applications: “No block, no lock”
    • Combinatorial Bidding
  • Upper D Block
    • Commercial/Public Safety Partnership
    • Must Reach Network Sharing Agreement
    • Extensive FCC Oversight
auction rules
Auction Rules
  • Minimum Reserve Prices

- Lower A Block – $1.8 Billion

- Lower B Block – $1.4 Billion

- Upper C Block – $4.6 Billion

- Upper D Block – $1.3 Billion

- Lower E Block – $900 Million

  • Anonymous Bidding
  • Package Bidding for Upper C Block
  • Contingent Subsequent Re-auction
    • Impact on anti-collusion quiet period
    • Prisoner’s dilemma
700 mhz timeline
700 MHz Timeline
  • Petition for Recon Sep. 24, 2007
  • Auction Applications Dec. 03, 2007
  • Upfront Payments Dec. 28, 2007
  • Mock Auction Jan. 18, 2008
  • Auction Begins Jan. 24, 2008
  • Auction Complete est. Mar. 07, 2008*
  • Down Payments est. Mar. 21, 2008* (20% total)
  • Long-form Applications est. Mar. 21, 2008*
  • Final Payments est. Apr. 04, 2008*
  • PN Announcing Long- est. Apr. 11, 2008*

Form Applications

  • Money to DTV’s Public- Jun. 30, 2008

Safety Trust Fund

*Assumes no re-auction required.

what is the competitive impact of wireless voice services
What is the Competitive Impact of Wireless Voice Services?
  • Minutes of Use
    • 1995: 31.5 Million
    • 2000: 194.95 Billion
    • 2005: 1.26 Trillion
    • 2007: 1.95 Trillion
  • Annualized (CMRS) Capital Investment
    • 1995: $5.6 Billion
    • 2000: $9.9 Billion
    • 2005: $19.8 Billion
    • 2007: $23.6 Billion
  • Direct CMRS Carrier Jobs
    • 1995: 61,000
    • 2000: 159,000
    • 2005: 225,000
    • 2007: 257,000
  • Revenue Per Minute
    • 1995: $0.43
    • 2000: $0.18
    • 2005: $0.07
common acronyms38
Common Acronyms
  • AMPS – Advanced Mobile Phone Service
  • ARPU – Average Revenue Per Unit
  • AWS – Advanced Wireless Service
  • ATC – Ancillary Terrestrial Component
  • BRS – Broadband Radio Service
  • CDMA – Code Division Multiple Access
  • CMRS – Commercial Mobile Radio Services
  • CTIA – The Wireless Association
  • DBS – Direct Broadcast Satellite
  • EBS – Educational Broadcast Service
  • EDGE – Enhanced Data Rates for GSM Evolution
  • EV-DO – Evolution-Data Only
  • GPS – Global Positioning System
  • GPRS – General Packet Radio Service
  • GSM – Global System for Mobile Communications
  • HSPDA – Highspeed Downlink Packet Access
  • iDEN – integrated Digital Enhanced Network
  • ITU – International Telecommunications Union
  • LMDS - Local Multipoint Distribution Service
  • MDS – Multipoint Distribution Service
  • MOU – Minutes of Use
  • MSS – Mobile Satellite Service
  • MVDDS – Multichannel Video and Data Distribution Service
  • MVNO – Mobile Virtual Network Operator
  • NTIA – National Telecommunications and Information Administration
  • OFDM – Orthogonal Frequency Division Multiplexing
  • PCS – Personal Communications Services
  • SDARS – Satellite Digital Audio Radio Service
  • SMR – Specialized Mobile Radio
  • SMS – Short Message Service
  • TDMA – Time Division Multiple Access
  • UMTS – Universal Mobile Telecommunications System
  • WLAN – Wireless Local Area Networks
  • WRC – World Radio Conference
slide39
Bryan N. Tramont

btramont@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