Wireless Carriers Urge Another 700 MHz Auction Postponement

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The wireless industry asked the FCC to postpone until June 2001 the upcoming auction of spectrum in the 700-megahertz (MHz) band, which they seek to offer third-generation wireless products, such as Internet and data services.

The FCC (www.fcc.gov) governs operation of 30 MHz of commercial spectrum located in the 700 MHz band, which previously was used exclusively for TV broadcasting on channels 60-69. Three years ago, Congress directed the FCC to reallocate this spectrum to commercial and public safety services, leaving competitors biting at the bit for spectrum they say can be used for a variety of wireless services, including fixed and mobile Internet access.

In a letter July 19 to FCC Chairman William E. Kennard, the Cellular Telecommunications Industry Association (www.ctia.org) and nine major wireless carriers and equipment makers asked for an auction delay because of uncertainties they have over when TV broadcasters actually will abandon the spectrum as they transition to digital TV.

The auction of much-needed wireless spectrum now is slated for Sept. 6 after having been postponed already by the FCC, which hopes the auction furthers the reach of wireless telephone service and high-speed Internet access, creating new possibilities for competitors in the process.

CTIA says another postponement also is needed to settle other auction-related issues, mainly a plan proposing that the wireless industry pay broadcasters, who occupy the spectrum until the year 2006, to get out of the way before that date.

TV stations occupying channels 60-69 are required to give up the spectrum by 2006 as part of the transition to digital TV. But that transition has been occurring slowly, a factor that could compromise the use of the spectrum for wireless.

At the request of members of Congress, the FCC already postponed the auction from a June date, saying bidders needed more time to prepare. The deadlines were set by Congress, which was counting on the money raised to balance the budget.

But the money pressure is a moot point now that the federal government has a larger-than-expected budget surplus. That means it's unclear whether Congress officially will act on another delay.

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