By Bill Burhop, ICTA

Recently, the FCC adopted a final Report and Order (R & O)(FCC 00-212, available from FCC web site - www.fcc.gov/bureaus/international/orders/2000/fcc00212.doc) addressing the allocation of the 18 GHz band of the radio spectrum. After two years of lobbying, filing documents, industry surveys and dozens of meetings the ICTA views were adopted by the regulators. In September of 1998, a dozen or so large satellite launching companies such as Hughes, Loral and TRW convinced the FCC International Bureau to publish a Notice of Proposed Rulemaking (NPRM) that included a grandfathering provision and a reallocation of the band that PCOs use for microwave transmission. Collectively, these provisions stopped any growth for PCOs, but worst of all, the NPRM would have terminated even our current use in the 18.142 — 18.58 spectrum which provides some 2500 PCO links nationwide. This would have dramatically altered the way many PCOs compete with franchised cable and increased subscriber rates. It also would have virtually terminated the sales by industry manufacturers and vendors of all 18 GHz equipment.

"This is an important victory for PCOs and MDU owners. It demonstrates another instance of our industry winning at the FCC. Also, it shows that when ICTA members get involved and take responsibility for our industry’s future that we can make a difference", said Bryan Rader, CEO of Media Works and President of the ICTA. "Microwave transmission by PCOs between MDU buildings saves significant capital expenditures and therefore the service rates to residents can be lower, which pleases the MDU owners. Due to our victory, we can continue to use this valuable video delivery option."

Rob Solomon of US Online remembers that, "The FCC NPRM was based on faulty understandings of how we use microwave transmission, what alternatives are available and the grasping nature of what the satellite companies wanted. Thankfully, numerous industry leaders got involved and went to work. We spent time on the phone honing our arguments, preparing written comments and setting a strategy. We also raised a battle fund to hire a lawyer to help us fight."

Following six months of effort and $140,000 in attorney fees, the FCC adopted a Petition for Relief that ICTA had filed. This removed the grandfathering provision which meant that PCOs could continue current operations and file for new microwave licenses. Regardless, the underlying problem persisted–the FCC wanted to take much of the 440 MHz away from PCO use and give it to the satellite companies for their proposed worldwide voice and data transmission systems.

"This was truly the David versus Goliath story. Huge companies and their heavily funded and high profile plans wanted what PCOs needed in the 18 band," said Henry Beaumont of Stellarvision, an early participant in the ICTA effort. "We started out down by several runs, but by the 7^th inning stretch, it was tied. Low and behold, by the bottom of the 9^th, we won. It feels damn good, too. Numerous PCOs worked on this but I must say my friend Bob Pallé deserves a pat on the back. He really invested the most money, time and expertise. While several of his colleagues that manufacture and sell the same equipment were sitting on the bench, Bob played all 9 innings and brought home the pennant."

Quotes from the FCC Final R & O stated: "In consideration of the comments, …we conclude the following: PCOs using the 18 GHz band, for both current and future operations, will not be able to compete effectively against franchised cable operators if we designate the 18.3 — 18.55 band (as the FCC had originally contemplated in the NPRM)…" The FCC also said, "It (the FCC final ruling) affords PCOs the ability to maintain and upgrade their existing systems to compete effectively against franchised cable systems." Pages 19 and 21, FCC R & O.

Mr. Beaumont summarized, "If that ain’t a home run, it’s a solid triple."

"The final rule as adopted means that all current use of PCO links can continue into the future unaffected," said Blonder Tongues’ Bob Pallé.

"Prior to this rulemaking, PCOs were co-primary in use with certain other users in the same spectrum. That co-primary status continues. This means that as PCOs apply for new links in the next 2-3 years there will be little problem. Beyond that time, there will be more users of this spectrum which will mean that PCOs may experience signal interference problems which will require greater and more complicated coordination issues with those other users, including the satellite companies. This will limit our growth and ability to put up new links after that point in time.

"What this means is we have protection for all of our current use, opportunity for the installation of more links in the next couple of years and the need to find additional means of video transport beyond that.

"It’s interesting that the FCC suggests that PCOs and the DBS providers work together for mutual benefit. The Report says, '…we believe that opportunities exist for the (satellite companies) and the (PCOs) to reach private commercial agreements that will allow each service to meet its needs. …' For example, PCOs might be willing to relinquish some spectrum if provided with comparable spectrum of satellite programming directly to each PCO receiving site…or the satellite operators could help PCOs install new equipment that is more spectrally efficient.

"My view is that this is an invitation to both DBS providers and PCOs to work out a deal where we use less of the spectrum but have all the lost programming replaced by a digital solution. It seems like a technical and business opportunity for all of us."

"The issue of the 12 GHz band was discussed at length with the regulators, but it was not directly impacted by this FCC rulemaking," continued Palle. "The idea is still pending in the FCC Cable Services Bureau. Yes, there would be benefits if we could use that spectrum, but there are serious limitations to its benefits. ICTA will continue to monitor the matter, but I think we need to hear from PCOs as to how useful that spectrum would really be for us.

"In summation, this is a clear victory, preventing a major blow to our industry. This would not have occurred if we did not have an industry organization. PCOs, MDUs and manufacturers would not even have known about this threat if we did not have ICTA. The members of our association were coordinated thorough the ICTA. Our work included numerous complicated filings of documents, we raised the money to pay for a lawyer, we monitored the FCC for two years, we joined a very useful coalition and we persisted. None of that would have happened without the ICTA. We need to learn from this lesson and build on it. Goodness knows there will be many more battles like this in the future."

"It’s also worth noting that after we spent all of our legal funds on phase one of this project that ICTA and its members carried on without outside legal counsel and prepared all the documents, did all the lobbying and attended all the negotiating sessions," said Bryan Rader. "The R & O is good news for our industry; the fact that we succeeded is even more important for our future."

Mr. Pallé and his associate Cliff Fox have graciously offered to address questions about the FCC action and the future of microwave transmission. They can be reached via e-mail at bpalle@blondertongue.com or via telephone at (732) 679-4000.

William J. Burhop is the Executive Director of the Independent Cable and Telecommunications Association (ICTA). The ICTA is the leading trade association representing cable and telecommunications companies serving the multihousing industry. The author may be reached with questions or comments via email at

bburhop@icta-online.org.

MELISSA

This is about a federal rulemaking in favor of our readership. It lets them use a wireless link to connect nearby buildings.

Following six months of effort and $140,000 in attorney fees, the FCC adopted a Petition for Relief that ICTA had filed.

"What this means is we have protection for all of our current use, opportunity for the installation of more links in the next couple of years and the need to find additional means of video transport beyond that."

"It’s also worth noting that after we spent all of our legal funds on phase one of this project that ICTA and its members carried on without outside legal counsel and prepared all the documents, did all the lobbying and attended all the negotiating sessions,"

Apartment building wirelessly linked