Clearwire 2009 Annual Report Download - page 31

R
egu
l
atory po
li
c
i
es app
li
ca
bl
eto
b
roa
db
an
d
Internet access, VoIP an
d
ot
h
er IP-serv
i
ces are cont
i
nu
i
ng t
o
develop, and it is possible that our broadband Internet access and VoIP services could be sub
j
ect to additiona
l
r
egulations in the future. Despite these recent regulatory mandates, both our Internet Phone Service and broadban
d
Internet access are su
bj
ect to many
f
ewer regu
l
at
i
ons t
h
an tra
di
t
i
ona
l
te
l
ep
h
one serv
i
ces. T
h
e extent o
f
t
h
e
r
e
g
ulations that will ultimatel
y
be applicable to these services and the impact of such re
g
ulations on the abilit
y
o
f
p
rov
id
ers to compete are current
l
yun
k
nown
.
S
p
ectrum Regu
l
atio
n
Th
e FCC rout
i
ne
ly
rev
i
ews
i
ts spectrum po
li
c
i
es an
d
ma
y
c
h
an
g
e
i
ts pos
i
t
i
on on spectrum a
ll
ocat
i
ons
f
ro
m
t
ime to time. On Jul
y
29, 2004, the FCC issued rules revisin
g
the band plan for BRS and EBS and establishin
g
more
flexible technical and service rules to facilitate wireless broadband operations in the 249
6
to 2
6
90 MHz band. The
F
CC a
d
opte
d
new ru
l
es t
h
at (1) expan
d
t
h
e perm
i
tte
d
uses o
f
EBS an
d
BRS spectrum to
f
ac
ili
tate t
h
e prov
i
s
i
on o
f
m
obile and fixed hi
g
h-speed data and voice services on channels previousl
y
used primaril
y
for one-wa
y
vide
o
d
e
li
very to
fi
xe
dl
ocat
i
ons; an
d
(2) c
h
ange some o
f
t
h
e
f
requenc
i
es on w
hi
c
h
BRS an
d
EBS operat
i
ons are
aut
h
or
i
ze
d
to ena
bl
e more e
ffi
c
i
ent operat
i
ons. T
h
ese new ru
l
es stream
li
ne
dli
cens
i
ng an
d
regu
l
atory
b
ur
d
en
s
associated with the prior service rules and created a “PCS-like” framework for
g
eo
g
raphic licensin
g
and inter
-
f
erence protect
i
on. Ex
i
st
i
ng
h
o
ld
ers o
f
BRS an
d
EBS
li
censes an
dl
eases genera
ll
y
h
ave exc
l
us
i
ve r
i
g
h
ts over use o
f
th
e
i
r ass
i
gne
df
requenc
i
es to prov
id
e commerc
i
a
l
w
i
re
l
ess
b
roa
db
an
d
serv
i
ces to res
id
ences,
b
us
i
nesses, e
d
uca
-
ti
ona
l
an
dg
overnmenta
l
ent
i
t
i
es w
i
t
hi
nt
h
e
i
r
g
eo
g
rap
hi
c mar
k
ets. T
h
ese ru
l
es a
l
so requ
i
re BRS
li
censees to
b
ear
t
heir own expenses in transitioning to the new band plan and, if they are seeking to initiate a transition, to pay th
e
c
osts of transitioning EBS licensees to the new band plan. The transition rules also provide a mechanism for
r
e
i
m
b
ursement o
f
transact
i
on costs
by
ot
h
er operators
i
nt
h
e mar
k
et. T
h
e FCC a
l
so expan
d
e
d
t
h
e scope o
fi
ts
s
pectrum leasin
g
rules and policies to allow BRS and EBS licensees to enter into flexible, lon
g
-term spectru
m
leases.
O
n April 21, 2006, the FCC issued an order adoptin
g
comprehensive rules for relocatin
g
incumbent BRS
o
p
erations in the 21
5
0 to 2162 MHz band. These rules will further facilitate the transition to the new 2.
5
GHz ban
d
pl
an. T
hi
sor
d
er
i
s current
l
ysu
bj
ect to Pet
i
t
i
ons
f
or Recons
id
erat
i
on an
dj
u
di
c
i
a
l
appea
l
.
O
n April 27, 2006, the FCC released a further order revisin
g
and clarif
y
in
g
its BRS/EBS rules. The FCC
genera
ll
y rea
ffi
rme
d
t
h
e
fl
ex
ibl
e tec
h
n
i
ca
l
an
d
operat
i
ona
l
ru
l
es on w
hi
c
h
our systems are
d
es
i
gne
d
an
d
operat
i
n
g
an
d
c
l
ar
ifi
e
d
t
h
e process o
f
trans
i
t
i
on
i
n
gf
rom t
h
eo
ld
spectrum p
l
an to t
h
e new spectrum p
l
an,
b
ut re
d
uce
d
t
h
e
t
ransition area from lar
g
e “ma
j
or economic areas,” to smaller, more mana
g
eable “basic tradin
g
areas.” Proponent
s
s
eeking to initiate a transition to the new band plan will be given a 30-month timeframe to notify the FCC of their
i
ntent to
i
n
i
t
i
ate a trans
i
t
i
on,
f
o
ll
owe
dby
at
h
ree-mont
h
p
l
ann
i
n
g
per
i
o
d
an
d
an 18-mont
h
trans
i
t
i
on comp
l
et
i
o
n
p
eriod. In markets where no proponent initiates a transition, licensees ma
y
self-transition to the new band plan. Th
e
F
CC adopted a procedure whereby the proponent will be reimbursed for the value it adds to a market through
r
e
i
m
b
ursement
by
ot
h
er commerc
i
a
l
operators
i
n a mar
k
et, on a pro-rata
b
as
i
s, a
f
ter t
h
e trans
i
t
i
on
i
s comp
l
ete
d
an
d
t
he FCC has been notified.
Th
e FCC a
l
so c
l
ar
ifi
e
d
t
h
e proce
d
ure
b
yw
hi
c
h
BRS an
d
EBS
li
censees must
d
emonstrate su
b
stant
i
a
l
serv
i
ce,
and required them to demonstrate substantial service b
y
Ma
y
1, 2011. Substantial service showin
g
s demonstrate t
o
t
he FCC that a licensee is not warehousin
g
spectrum. If a BRS or EBS licensee fails to demonstrate substantia
l
s
erv
i
ce
b
y May 1, 2011,
i
ts
li
cense may
b
e cance
l
e
d
an
d
ma
d
eava
il
a
bl
e
f
or re-
li
cens
i
ng. We are
i
nt
h
e process o
f
p
reparin
g
a plan to meet the substantial service deadline.
T
he FCC reaffirmed its decision to permit mobile satellite service providers to operate in the 2496 t
o
2
500 MHz band on a shared, co-primar
y
basis with BRS licensees. It also concluded that spectrum sharin
g
in th
e
2
496 to 2500 MHz band between BRS licensees and a limited number of incumbent licensees, such as broadcast
auxiliary service, fixed microwave and public safety licensees, is feasible. It declined to require the relocation of
t
hose incumbent licensees in the 24
9
6 to 2500 MHz band. The FCC reaffirmed its conclusion that BRS licensees
c
an share the 2496 to 2500 MHz band with industrial, scientific and medical devices because such devices t
y
picall
y
o
p
erate in a controlled environment and use fre
q
uencies closer to 24
5
0 MHz. The FCC also reaffirmed its decision
21