re: US Spectrum
>> What is Happening with Regard to Wireless Spectrum?
Linda Mutschler
Merrill Lynch
July 23, 2002
wirelessroadmap.com
Highlights: What is happening with regard to wireless spectrum?
· First, the US Supreme Court has scheduled oral argument for the appeal request by the government regarding the DC Circuit Court’s ruling in favor of NextWave for October 8, 2002. Since oral argument is scheduled for early in the fall term, it is possible (but not certain) that we could have a ruling from the Supreme Court before year-end. We continue to believe that we’ll most likely have a ruling in early 2003.
· Second, in April, Verizon Wireless filed suit in the U.S. Court of Federal Claims to seek a ruling that the auction contract for the disputed licenses was void. We think a ruling on this could also come in 2003. Currently, oral argument is scheduled for April 2003, but Verizon Wireless has filed to expedite the schedule.
· Third, on June 19th, legislation was passed and signed into law that would indefinitely delay the bulk of the previously planned 700 MHz auctions. A portion of the lower 700 MHz band is scheduled for auction on August 19th, but we believe that the major wireless carriers will not be participating.
· Fourth, we think that the FCC could rule on the public safety spectrum proceeding (i.e., Nextel’s initial white paper proposal) by the end of 2002. The FCC has extended the comment deadline from July 8th by 30 days.
· Fifth, on July 23rd, the U.S. Department of Commerce concluded that 90 MHz of radio spectrum could be made available in the future for advanced wireless services. The National Telecommunications and Information Administration (NTIA) said that the 90 MHz available for 3G services would be made up of 45 MHz from the 1710 to 1755 MHz band, which is now used by federal government agencies (including the DoD) and 45 MHz from the 2110 to 2170 MHz band, which is occupied by non-government users. We believe that the spectrum could be made available for auction in about the 2005 time frame, with potential availability planned for no later than the end of 2008. Therefore, of the 120 MHz of frequency that was originally identified for assessment, it appears that approximately 90 MHz could be made available for commercial wireless services in the future.
· While the identification of additional spectrum for the wireless industry is a positive for the long term, for the intermediate term, we believe that the potential for consolidation will be more important. In addition, we think that the overhang generated by the NextWave re-auction bids could be somewhat of an obstacle until that matter is resolved. <<
- Eric - |
