Spectrum Woes: Real Or Feigned? wirelessweek.com
From the July 31, 2000 issue of Wireless Week
By Caron Carlson
WASHINGTON - The United States' largest carriers are crying poverty to get more spectrum, set aside for small businesses. But entrepreneurs hoping to compete call them crocodile tears.
Congress initiated the small business spectrum set-aside and has continued to support the entrepreneurial C- and F-Block PCS program. But the FCC may redirect part of the carve-out to the largest carriers in a re-auction scheduled for Nov. 23.
FCC officials' rationale to end-run Congress? Concern for the capacity of U.S. carriers to provide advanced services. It's unclear how much spectrum carriers will need for third-generation services, and when. While mega-carriers suggest to regulators a dire need for more spectrum, they tell investors another story.
In February, Sprint PCS said it is using less than 8 megahertz of its 30 megahertz holdings in most major metropolitan areas. In April, Sprint and U S West Wireless LLC petitioned the FCC to overturn the rules restricting C- and F-Block PCS licenses and let large carriers bid in the re-auction.
Also in February, AT&T Wireless Services told the FCC that without additional PCS spectrum, the firm would be hard-pressed to rollout 3G services. In the same filing, AT&T Vice President Douglas Brandon noted that AT&T is not facing spectrum constraints today?instead, it is reserving spectrum for increased demand and for fixed wireless services.
In a July 19 article, The Washington Post quoted Nextel Communications Treasurer John Brittain: Nextel has enough spectrum to serve "nearly five times its current customer base" and 3G services will be rolled-out in 2003 or 2004 at the earliest. Last week, Nextel spokeswoman Kara Palamaras told Wireless Week that Nextel has enough spectrum for its 10-year business plan.
PCIA recently asked the FCC to take note of the claims of abundant spectrum holdings before withdrawing frequencies from the small business community. That Nextel is "not even close to exhausting its current spectrum allocation," yet continues to add record subscribers suggests that "the bleak picture painted by these carriers overstates the immediate and pressing need for additional spectrum," PCIA told the commission.
How much spectrum carriers need to offer advanced service in the future remains a matter of debate. So are cries for more spectrum really crocodile tears? Perhaps. Because according to large carriers themselves, they are not in dire need of more spectrum today.
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Perhaps they just want to tie up the spectrum and keep it out of the hands of potential competitiors - DPR |
