# Presentation: 271244

## 
Jim Schlichting
Deputy Chief
Wireless Telecommunications Bureau, FCC

**Jim Schlichting**
**Deputy Chief**
**Wireless Telecommunications Bureau, FCC**

**Access to Licensed Spectrum for Wireless Broadband**

**FCC/USDA Rural Broadband Educational Workshop **
**June 19, 2008**

## Access to Spectrum for Rural Broadband

**There are several mechanisms that the FCC uses to make spectrum available for wireless services, including licensed and licensed-exempt spectrum.**
**Licensed spectrum generally allows for exclusive use of particular frequencies or channels in particular locations.**

**Notes:**
There are several mechanisms that the FCC uses to make spectrum available for wireless services, including licensed and licensed-exempt spectrum.

Some licensed frequencies are designated for commercial use while others are allocated for use by public safety agencies. Many of the licensed frequencies can also be leased or transferred to other entities in the secondary market. 

So, what is licensed spectrum?

Licensed spectrum generally allows for exclusive use of particular frequencies or channels in particular locations.

Licensed spectrum is what your commercial wireless phone companies use.

## Licensed Spectrum

**The rules for licensed spectrum are flexible.  **
- A licensee has flexibility in deciding what services to offer and what technologies to deploy on licensed spectrum.
**Equipment must meet basic technical requirements.**
**Equipment authorization is required.**

**Notes:**
One of the primary attributes of radio services using licensed spectrum is that these services have interference protection.
The rules for licensed spectrum are flexible.  A licensee has flexibility in deciding what services to offer and what technologies to deploy on licensed spectrum.

Equipment must meet basic technical requirements

Equipment authorization is required

## Licensed spectrum licensed on a site-by-site basis or geographic service area, or both.

Primary attributes of licensed spectrum (as opposed to license exempt spectrum) – you generally must pay to access it.

**Primary attributes of licensed spectrum (as opposed to license exempt spectrum) – you generally must pay to access it.**

**Licensed Spectrum**

**Notes:**
Some licensed frequency bands were made available on a site-by-site basis, meaning that licensees have exclusive use of the specified spectrum bands in a particular point location with a radius around that location.

The rights to use other bands, including almost all those licensed since 1994, were made available by particular geographic areas, such as Economic Areas (EAs) or Basic Trading Areas (BTAs).  These geographic areas can cover a county, multiple counties, regions or even the entire country.

Some bands include a hybrid of these 2 models, in which the spectrum was initially licensed on a site-by-site basis, and then the "white space" around those licenses was auctioned and licensed on a geographic area basis.

And that gets us to one of the other primary attributes of licensed spectrum – you generally must pay to access it.

Starting in 1990s, Congress directed the FCC in general to use auctions to resolve all mutually exclusive initial license applications.

James will explain how interested parties can obtain access to spectrum in the secondary market.

## FCC Auctions

**Since the first spectrum auction was held in July 1994, the FCC has**
**Completed 70 auctions (as of 4/30/08)**
**Auctioned over 31,000 licenses **
**Qualified over 4,000 bidders to participate**

## FCC Auctions

**Pre-Auction**
**Service rules established in rulemaking**
**Service area**
**Block size**
**Technical rules**
**Build out requirements**
**Public Notices released**
**Auction seminar and mock auction**
**Post-Auction**
**Down payment and long form application**
**Final payment and license grant**

## FCC Auctions

**Opportunities for the public to be heard**
**Commission seeks comment on policy issues that relate to auction designs in allocation & service rulemakings.**
**Band plan decisions (e.g., frequency block size, geographic areas, spectrum pairing)**
**Commission seeks comment on specific auction design proposals when each auction is announced.**
**Auction design: package bidding, information disclosure procedures**
**Minimum bids / reserve price**

## FCC Auctions

**Different Geographic Areas for ****Different Services and Blocks**

## Small Business Bidding Credits

**Small business size standards considered on service-specific basis**
**Size based on average gross revenues over past three years (≤$3 million, ≤$15 million, ≤$40 million)**
**Bidding credits generally of 35%, 25%, 15%**
**Subject to unjust enrichment**
**Special attribution rule for rural telephone cooperatives**

## Tribal Land Bidding Credits

**Post-auction credits given to winning bidders that deploy facilities on and provide services to qualifying tribal lands. **
**A qualifying tribal land is any federally recognized tribal area that has a wireline telephone penetration rate equal to or less than 85 percent. **
**More information on auctions: http://wireless.fcc.gov/auctions**

## Licensed Spectrum for Rural Broadband

**One of the key roles of the FCC in facilitating the deployment of broadband and cutting-edge wireless technologies is to make additional spectrum available for these services.**
**The FCC has been actively working in recent years to make more spectrum available and to promote the deployment of broadband services in spectrum that has already been licensed.**

**Notes:**
One of the key roles of the FCC in facilitating the deployment of broadband and cutting-edge wireless technologies is to make additional spectrum available for these services.

The FCC has been actively working in recent years to make more spectrum available and to promote the deployment of broadband services in spectrum that has already been licensed.

The FCC generally does not mandate that particular technologies be deployed in particular bands, but gives licensees the flexibility to deploy the technology of their choice as long is conforms to technical parameters designed to mitigate interference.

There are multiple spectrum bands available for developing broadband technologies pursuant to these flexible rules.

## Access to Licensed Spectrum for Wireless Broadband

**Multiple spectrum bands for wireless broadband technologies**
- AWS Spectrum
- 2.5 GHz BRS/EBS Band
- 3650-3700 MHz Band
- 700 MHz Band

**Notes:**
Now, let me focus on a few of bands in particular.  Some of the frequencies described below are used for fixed broadband service, while others are used for mobile, portable, or a combination of fixed and mobile service.

## Advanced Wireless Services (AWS) Spectrum

**Notes:**
The AWS-1 auction completed last year included 90 MHz of spectrum in the 1.7 and 2.1 GHz bands.

The lower portion of the AWS-1 spectrum was reallocated from federal government use, while the upper portion was reallocated from other, non-federal wireless services.

This spectrum can be used by carriers to provide a wide array of innovative wireless services and technologies, including voice, data, video, and other wireless broadband services.

The licenses offered in the auction encompassed a range of geographic area and megahertz sizes in order to accommodate the varying spectrum needs of different types of wireless providers, including those serving rural areas.

The AWS-1 spectrum represents only the first piece of AWS spectrum.  The FCC is working to make an additional 40 MHz of AWS spectrum available to licensees.  
The FCC has sought comment on the service and technical rules for 20 megahertz of spectrum in the 1.9 and 2.1 GHz bands, known as “AWS-2,” and for an additional 20 megahertz of spectrum at 2155 to 2175 MHz.

## Advanced Wireless Services (AWS)Spectrum

**Auction completed September 18, 2006**
**Largest amount of spectrum suitable for wireless broadband ever made available in a single auction**** **
**104 bidders won 1,087 licenses**
**Licensees can use to provide a wide range of new, wireless broadband services**

**Notes:**
The AWS-1 auction represented the largest amount of spectrum suitable for deploying wireless broadband ever made available in a single auction. 
This spectrum will enable carriers to provide a wide range of new, wireless broadband services, bringing the FCC closer to its goal of achieving universal, affordable broadband access. 

1,087 licenses sold to 104 bidders.

The winning bidders included a mix of different types of companies, including the major wireless carriers that are looking to enhance coverage or deploy new technologies, small businesses that seeking to serve rural areas, and new entrants from other technology sectors, most notably cable.

The companies that won AWS spectrum licenses covering the Saginaw area include Verizon Wireless, AT&T, MetroPCS, T-Mobile, SpectrumCo, and Denali/Leap.

Many licenses in the auction were won by smaller companies and were less expensive than you might expect.  For instance, the (net) high bids on 4 licenses covering parts of northern Michigan and the Upper Peninsula (CMAs 473, 474, 475, and 476) ranged from $66,000 to $169,000.  These licenses were won by Dakota Wireless, Wittenberg Telephone Company, and Agri-Valley Communications, all of whom received small business bidding credits. 

## BRS/EBS Spectrum

**Notes:**
Broadband Radio Service and Educational Broadband Service (or BRS/EBS) spectrum is in the process of transitioning to a new band plan and more flexible service rules in order to promote efficient spectrum use and facilitate broadband deployment.  Post-transition, there will be 194 megahertz of spectrum for broadband services.

A July 2004 Order eliminated the interleaved channels and rigid structure of the previous band plan.  The new band plan provided contiguous spectrum for low-power, cellularized operations – such as advanced mobile services – while maintaining a home for traditional, high-power, one-way video operations in the middle of the band.

The July 2004 Order and April 2006 Recon Order established rules transitioning to the new band plan.  Market-based transition plans can be filed by a proponent licensee on behalf of all licensees in a particular area, or licensees can self-transition to the new band plan in markets where a proponent does not come forward.

In the Saginaw area, BRS/EBS spectrum is held by several entities, including:  Sprint; Clearwire; SpeedNet; Paul Communications; Delta College; ALHC, Inc.; Network for Instructional TV; Regional Educational Media Center; the North American Catholic Educational Programming Foundation; the Grand Ledge Public Schools; the Charlotte Public Schools; and the Eaton Rapids Public Schools.  Representatives from SpeedNet are here today and will be speaking this afternoon. 

Some BRS/EBS licensees have begun to deploy portable wireless broadband services.

## 3650 MHz Band Spectrum

**50 MHz of spectrum transferred from federal to ****non-federal use.**
**FCC adopted non-exclusive, “hybrid” licensing approach in 2005.**
- Combined benefits of both licensed and unlicensed regimes.
**Equipment must use contention-based protocol to minimize interference.**
**FCC affirmed rules with minor modifications in June 2007.**

**Notes:**
FCC made 50 MHz of spectrum available for wireless broadband services in the 3650 MHz band.  

Originally used by federal government but transferred to non-federal use.  FCC allocated for fixed and mobile service, grandfathered existing C-band downlinks.

In 2005, FCC adopted a unique, non-exclusive licensing approach for this band that combined elements from both the traditional licensed and unlicensed regimes.  The FCC structured the band’s rules to provide Wireless Internet Service Providers (WISPs) and other providers an economical means of quickly initiating broadband services, particularly in under-served and rural areas.

Licensees will have nationwide, non-exclusive licenses in the band, so there will be no auction.  Over 300 3650 MHz licenses have been issued since 2006, including 7 to companies located in Michigan.  One of those companies, Air Advantage, is here today, and Scott Zimmer from Air Advantage will be speaking this afternoon.

Licensees must register their fixed sites to enable informal coordination among licensees.  There are no “first-in” interference protection rights.

The equipment used in this band must also incorporate a contention-based protocol, a technology that minimizes interference and allows multiple licensees to share spectrum.

The FCC concluded that this licensing approach struck an appropriate balance, providing a regime with low entry costs and minimal regulatory delay, while still ensuring more orderly operation than would exist under a traditional unlicensed approach in which users must accept interference from others in the band and users’ locations are unknown.

## Access to Licensed Spectrum for Rural Broadband

- Area Type

- Licenses

- A

- 698

- -

- 704, 728

- -

- 734

- 12 MHz

- 2 x 6 MHz

- EA

- 176

- B

- 704

- -

- 710, 734

- -

- 740

- 12 MHz

- 2 x 6 MHz

- CMA

- 734

- C

- 710

- -

- 716, 740

- -

- 746

- 12 MHz

- 2 x 6 MHz

- CMA

- 734

- D

- 716

- -

- 722

- 6 MHz

- unpaired

- EAG

- 6

- E

- 722

- -

- 728

- 6 MHz

- unpaired

- EA

- 176

- C

- 746

- -

- 757, 776

- -

- 787

- 22 MHz

- 2 x 11 MHz

- REAG

- 12

- D

- 75

- 8

- -

- 76

- 3

- , 78

- 8

- -

- 79

- 3

- 10 MHz

- 2 x 5 MHz

- Nationwide

- 1

- A

- 757

- -

- 758, 787

- -

- 788

- 2 MHz

- 2 x 1 MHz

- MEA

- 52**

- B

- 775

- -

- 776, 805

- -

- 806

- 2 MHz

- 2 x 1 MHz

- MEA

- 52**

- **  These Guard Band Blocks h

- ave been auctioned, but are being relocated.

**Revised 700 MHz Band Plan**

**Revised 700 MHz Band Plan**

- 757

- 763

- 775

- 787

- 793

- 805

- A

- B

- C

- D

- E

- A

- B

- C

- C

- A

- D

- P

- u

- b

- l

- i

- c

- S

- a

- f

- e

- t

- y

- B

- C

- A

- D

- P

- u

- b

- l

- i

- c

- S

- a

- f

- e

- t

- y

- B

- CH.

- 52

- CH.

- 53

- CH.

- 54

- CH.

- 55

- CH.

- 56

- CH.

- 57

- CH.

- 58

- CH.

- 59

- CH.

- 60

- CH.

- 61

- CH.

- 62

- CH.

- 63

- CH.

- 64

- CH.

- 65

- CH.

- 66

- CH.

- 67

- CH.

- 68

- CH.

- 69

- 698

- 704

- 710

- 716

- 722

- 728

- 734

- 740

- 746

- 752

- 758

- 764

- 770

- 776

- 782

- 788

- 794

- 800

- 806

- LOWER 700 MHz BAND (CH. 52

- -

- 59)

- UPPER 700 MHz BAND (CH. 60

- -

- 69)

**Notes:**
Finally, let me focus on the 700 MHz band.  The 700 MHz band includes a total of 108 MHz from 698-806 MHz.  This has been divided into the Lower and Upper 700 MHz bands shown here.  62 megahertz of spectrum, shown with the arrows, was auctioned earlier this year, making a total of 84 MHz for commercial use.  These licenses can be used to provide new and innovative wireless services to consumers using 4G technologies.

Because the 700 MHz spectrum falls below 1 GHz, it has excellent propagation characteristics, and enables licensees to cover a larger area with fewer cell sites and less infrastructure.  This makes the spectrum particularly valuable and ideal for serving rural and other hard-to-reach areas.

The 700 MHz spectrum auction closed in March.  All told, 101 bidders won 1090 licenses, over half of whom (56) were small businesses taking advantage of the Commission’s bidding credits program.  The 700 MHz Auction winners in Saginaw are AT&T, Verizon, and Frontier Wireless.  There are also 2 700 MHz licensees from earlier auctions:  Qualcomm and Agri-Valley Communications.

The licensees for the Upper C Block in the 700 MHz are subject to an open platform requirements, meaning that they must allow customers, device manufacturers, third-party application developers, and others to use any device or application of their choice on their networks in this band.  This will allow consumers to use the handset of their choice and download and use the applications of their choice in this spectrum block, subject to certain reasonable network management conditions that allow the licensee to protect the network from harm.

All wireless licensees are subject to some type of performance requirement to demonstrate to the Commission that they are putting their spectrum to use.  The 700 MHz auction winners are subject to stringent build-out requirements.  If licensees fail to meet the end-of-term buildout requirements, the FCC will automatically reclaim the unserved portions of the license area and make them available to other potential users.  This is often referred to as a “keep-what-you-use” policy.