trending Market Intelligence /marketintelligence/en/news-insights/trending/r9madjubbyumfcg-pcrn-q2 content esgSubNav
In This List

FCC takes next steps to open up high-band spectrum for 5G uses

Blog

Broadcast deal market recap 2021

Blog

Price wars in India: Disney+ Hotstar vs. Amazon Prime Video vs. Netflix

Blog

Volume of Investment Research Reports on Inflation Increased in Q4 2021

Blog

Using ESG Analysis to Support a Sustainable Future


FCC takes next steps to open up high-band spectrum for 5G uses

While the Federal Communications Commission on June 7 unanimously advanced a series of proceedings to open up more high-band millimeter wave spectrum for commercial use, some other votes proved more controversial.

Looking to pave the way for next-generation 5G wireless technology, the FCC voted 4-0 to adopt an order that lays out new rules for the 24 GHz band and also addresses some of the spectrum-sharing issues that have arisen for fixed satellite services already operating in the band. Under the order, all mobile equipment capable of operating on any frequency in the 24 GHz band must be capable of operating on all frequencies in this range, including the band's upper and lower segments. The FCC noted that this provision would increase efficient use of the spectrum by ensuring that no band segment is left without a device ecosystem.

The FCC also established a band plan for the lower 37 GHz band comprised of six 100 MHz channels, and it advanced a notice of proposed rulemaking that seeks to make additional spectrum in the 42 GHz band and 26 GHz band available for flexible wireless use.

"Our goal is to create so much space for so many activities," said Republican FCC Chairman Ajit Pai, explaining the agency's intent for its spectrum policy with a pop culture reference to the 2008 comedy "Step Brothers."

The June 7 vote builds on two past agency orders. In 2016, the FCC unanimously adopted the Spectrum Frontiers order, which established rules for wireless broadband operations in frequencies at or above 24 GHz. The following year, the agency approved a second order to make available an additional 1,700 MHz of wireless spectrum for flexible use in the 24 GHz and 47 GHz bands.

While the proceedings were largely supported by all four commissioners, Commissioner Jessica Rosenworcel, a Democrat, reiterated her call for the agency to put out a full auction calendar. The FCC has a 28 GHz spectrum auction scheduled for later this year, and a 24 GHz spectrum auction slated to immediately follow, but Rosenworcel said the agency needs to go faster and farther.

"While our supply of high-band spectrum is increasing, the list of potential bidders may be shrinking. We need to structure each and every one of our auctions going forward in a way that's designed to bring in different spectrum interests with new ideas that may not always look like the bidders of the past," she said.

The FCC was more divided on an order that will make it easier for companies to discontinue legacy communications services, such as DSL internet service provided over old copper lines. The goal of the order, which was approved, is to make it easier for the companies to transition to new fiber-based networks.

Rosenworcel, the lone Democrat on the commission since the recent departure of Mignon Clyburn, spoke against a provision in the order that eliminates requirements for carriers to educate customers about any network alterations.

"It's mean to millions of Americans who will find that their carriers switch out services without advance notice or consumer education, leaving them scrambling to find alternatives and reconfigure their homes and businesses just to keep connected," she said.

Pai defended the order, saying it will "free up billions of dollars, which carriers can devote to building new networks instead of propping up old ones."

Also at the meeting, the FCC unanimously voted to forbear from requiring certain rural broadband service providers to pay Universal Service Fund, or USF, contributions on their internet services. Though the commission has long declined to collect USF contributions from broadband internet access services in general, small rural carriers that provide broadband transmission services on a common carriage basis have been uniquely required to make USF contributions. The forbearance order aims to correct that imbalance.

Among other agenda items, the FCC voted 3-1 to advance a proposal that seeks to reform the intercarrier compensation system for telephone calls made to toll-free numbers. Pai said the proposal is in part aimed at discouraging robocalls, as the current intercarrier compensation system can actually create a revenue opportunity for robocallers. But Rosenworcel, who voted against the item, said the changes could see consumers shouldering the costs for toll-free calls.

Additionally, the FCC unanimously adopted an order to protect consumers from slamming, the unauthorized change of a consumer's telephone provider, and cramming, the placement of unauthorized charges on a consumer's telephone bill. The order prohibits "material misrepresentations" on carrier telemarketing calls to consumers and would render invalid any subsequent carrier change if the sales call was based on false information. In addition, the order introduces new penalties for carriers found to be violating the rules.

Ahead of the meeting, on June 6, the FCC also voted on two items focused on allowing satellite companies to offer new services in the U.S. The first item expands the U.S. market access of O3b Networks Ltd, allowing it to use 26 additional satellites to supply broadband to American customers. The second authorizes Audacy Corp., a California-based startup, to deploy a satellite constellation that enables satellite systems to "talk" to each other.