Election results could alter 700 MHz
The Democrats gaining control in both houses of Congress last month increases the chances that Capitol Hill will support a public/private partnership building a nationwide, public-safety-grade network using 30 MHz of 700 MHz spectrum currently scheduled to be auctioned by January 2008.
Cyren Call Communications’ Morgan O’Brien, co-founder of Nextel Communications, said he believes the political shift in Washington, D.C., is a positive development for his company’s proposal, which was unveiled shortly after Congress passed a law early this year that requires the spectrum to be auctioned (MRT, June, page 52).
“From the abstract principle that we’re an agent of change, and [the Democrats] are going to be looking for change, it’s a better situation than we had before, where we were trying to get the Republicans to change something they had just done,” O’Brien said in an interview at the IWCE/MRT Summit in Charlotte, N.C. “The second thing is that, if what they’re saying from both sides is true — that they’re looking for bipartisan achievements — I think this is an excellent bipartisan achievement.”
Such a change was necessary for Cyren Call. Despite O’Brien’s personal belief that a public/private partnership would appeal to Republicans philosophically, it was becoming evident that a Republican-controlled Congress was resistant to the notion.
In fact, an aide for one Republican on Capitol Hill told Cyren Call that he saw no reason to change the auction plans and that the federal government was not obligated to help public safety, calling it “the municipalities’ job,” said Bruce Cox, Cyren Call’s vice president for government relations.
Remembering the incident, O’Brien called it “one of the low moments in the first six months” of Cyren Call’s existence.
But the timing of the November elections benefited Cyren Call. Votes in those races were cast less than a week after the FCC took action on the Cyren Call proposal that O’Brien described as “unprecedented.”
After opening a public-comment period for the proposal, the FCC, days later, dismissed the notion of a rulemaking proceeding. However, the dismissal was based solely on the notion that the commission could not consider the matter without Congress changing its auction plans — something Cyren Call officials have acknowledged from the beginning. This dismissal “without prejudice” will not disrupt the existing proceeding, during which comments could be received through Nov. 29.
“I don’t believe it really changes anything,” said Blair Levin, a former FCC chief of staff and telecom analyst for Stifel Nicolaus. “It was fairly clear before they put that out, for them to do anything, Congress was going to have to act.”
By taking the unusual action, the FCC hopes that comments in the proceeding will address the merits of the Cyren Call proposal instead of focusing on the procedural limitations that the commission faces if Congress does not alter the 700 MHz auction plans, an FCC spokesman said.
CTIA, the trade association for commercial wireless carriers, had filed a comment focusing on the fact that the FCC would not be able to make a rulemaking in favor of Cyren Call under current law. O’Brien said he believes the commission was under considerable pressure from CTIA’s powerful lobby to dismiss the rulemaking.
“I can only guess how much political pressure was on the chairman from the comment-dismissed side,” O’Brien said. “I can only be thankful that we got the public comment. That achieved our objective. … I’m not at all critical because — considering the forces that were at work — I didn’t think it was that bad an outcome.”
Cyren Call will spend the remainder of the year encouraging entities to comment and submitting reply comments that “may expand on the technology work we’ve been doing” by mid-December, O’Brien said.
Cyren Call officials also are working with public-safety representatives to craft legislation that will be proposed when the new Congress convenes in December.
While CTIA is on the record in its opposition to the Cyren Call proposal, Cox indicated that not all carriers in the trade organization share that position.
“I think the carriers with the deep pockets want it auctioned,” Cox said. “We’ve heard from the secondary and tertiary [carriers] that see a Cyren-like solution as their opportunity to get into broadband — they’ve reached out to us.”
O’Brien focused his concern on the most powerful CTIA member, Verizon Wireless. “[Pro-Cyren Call members of CTIA] may be quiet about it, because they, too, fear the mighty Verizon,” he said. “It can’t be a healthy industry where so many elements of it fear one company. Everywhere we turn, we find somebody who won’t do something because they’re afraid of Verizon.”
With Democrats in control of Congress, it is more likely that Capitol Hill will be willing to consider the Cyren Call proposal, which provides an opportunity for new entrants to the wireless market to access the spectrum needed to provide services, O’Brien said. Should Congress adopt the public/private partnership notion for the 700 MHz band, O’Brien said he believes all carriers will want to participate.
“We think this is a great business opportunity, and it’s even greater if you’re already in the business,” he said. “We do not believe they will cut their heads off to spite their face, with the possible exception of one company, which does irrational things.”
But to make it happen, Cyren Call needs Congress to take action during the next nine months, Cox said.
“We’ve really got to get the legislation through the process by the time Congress recesses in August,” he said. “Just looking at the schedule when they come back, there’s just not a lot of legislative days after the recess.”
KEY DATES IN THE 700 MHZ SAGA
Oct. 30 | FCC opens public-comment proceeding on Cyren Call proposal. |
Nov. 3 | FCC dismiss Cyren Call rulemaking petition, keeps public-comment proceeding open. |
Nov. 7 | Democrats dominate elections, take both houses of Congress. |
Nov. 29 | Comments due in Cyren Call proceeding. |
Dec. 13 | Reply comments due in Cyren Call proceeding. |