FCC Postpones 3G Licence Auctions

date: June 20, 2002 - source: BWCS

The FCC has imposed a six-month delay on the auction of licences in the 698-746 MHz band which could be used for next-generation cellular services. The US regulator claims the postponement is to allow Congress to finalise legislation and timings concerning the migration of analogue television broadcasters, which currently occupy much of the band, to digital. This will clear the band for newcomers wishing to offer public safety, rural wireless and 3G services.

The FCC has been placed in a difficult position by the cellular industry, which while calling for additional spectrum for next-generation mobile services, has also dismissed the 698-746 MHz band as undesirable. The incumbent US cellular operators believe that they will be forced to pay a higher price for the spectrum if the TV broadcasters are still using and are instead keen to see the auction shelved indefinitely, which will also prevent new entrant operators acquiring the spectrum.

The FCC claims that migration to digital TV services could take a decade if left open ended and therefore it wants to auction the spectrum to new operators as soon as possible to speed up this process. It also claims there are portions of unused or white spectrum within the 698-746MHz band that could be used to offer services today. The re-scheduled auction is due to take place on 14 January 2003.

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