Howard Buskirk

The Foundation for Taxpayer & Consumer Rights filed a lawsuit in L.A. Superior Court charging wireless phones sold by T-Mobile, AT&T and Cingular contain software that prevents porting to other carriers. The suit charges this is a violation of Cal. consumer protection law.

Nextel, still fighting to make certain FCC’s 800 MHz rebanding plan includes giving it spectrum at 1.9 GHz, has offered a new concession, giving up additional spectrum at 800 MHz to be used by public safety. The proposal appears designed in part to give FCC Chmn. Powell additional cover if he sides with Nextel against other wireless carriers, which have made the case Nextel instead should get 2.1 GHz spectrum. Nextel had proposed giving public safety 2.5 MHz and the new plan would essentially double that to 4.5 MHz. Based on Nextel’s numbers, the offer is worth $863 million more than the previous proposal, or $5.155 billion, a spokesman said.

NextWave asked the bankruptcy court overseeing its reorganization for permission to sell at auction its FCC license rights in 6 markets outside its Northeast “footprint,” including 10 MHz of its 30 MHz in N.Y., the company said Mon. The other licenses are for Denver, Portland, Ore., Sarasota, Fla., Tampa, and Tulsa. The reserve price of the 6 licenses offered at auction is $1.083 billion, according to publicly available records. NextWave said it would sell only its C2 block spectrum in N.Y. It planned to retain 20 MHz in other bands that would allow it to file a plan in answer to a request for proposal by the N.Y. Dept. of Information Technology & Telecom for design and construction of a citywide wireless network.

Several companies and associations used a call by the FCC for comments on broadband wireless issues to plead for more spectrum for emerging technologies. Most commenters also stressed that the FCC must give companies flexibility in using spectrum while providing more certain rules of the road.

The FCC Office of Engineering & Technology has largely wrapped up the technical work on new questions raised about assigning Nextel 2.1 GHz vs. 1.9 GHz spectrum, and other technical issues that are part of the 800 MHz rebanding plan, bureau Chief Edmond Thomas said Fri. That development means that only policy calls remain on one of the stickiest issues before the FCC.

Wireless entrepreneur Craig McCaw announced launch of a broadband wireless provider using ITFS band spectrum. McCaw told the Wireless Communications Assn. conference in Washington Wed. the service is now “on the air” in Jacksonville, Fla., and St. Cloud, Minn., offering wireless broadband. The company, backed by McCaw and other investors, is testing in Mexico City and Yellow Knife in Canada’s Northwest Territories.

The FCC is strongly considering delaying an order on ITFS spectrum rules due at the Commission next week, according to officials at the Wireless Communications Assn. conference in Washington Wed. The FCC has faced a firestorm of protests the past week, since word broke an order was steaming forward that would take 18 MHz of spectrum away from ITFS as part of a rule on the MMDS/ITFS spectrum allocation. The Commission must decide today (Thurs.) whether the order will be on the sunshine agenda for the June 10 Commission meeting.

The Ad Hoc MMDS Licensee Consortium (AMLC), contradicting Wireless Communications Assn. (WCA) statements, told the FCC some companies would be very supportive of a carve-out creating a new 12 MHz band of spectrum -- taken in part from the ITFS band -- to be sold at auction for wireless broadband and other advanced services.

The U.S. Appeals Court, D.C. rejected claims by AT&T that the FCC should have launched a proceeding before allowing Sec. 272 safeguards to sunset with respect to Verizon’s long distance operations in N.Y. The decision was important to the extent that the N.Y. case was the first to be addressed in federal court. If the court had ruled otherwise the decision could have been very disruptive for Verizon and other Bells, officials said. The question in the case was straightforward: Under the Act, when a Bell receives permission to offer long distance services under Sec. 271 for 3 years long distance and local services must be separate, including separate offices and service trucks. But after 3 years, unless FCC deems otherwise, that requirement ends. In the N.Y. case the requirement ended and AT&T sued. Judges appeared skeptical of AT&T’s arguments in April (CD April 16 p7), so the decision wasn’t a surprise. “In this action, petitioner AT&T Corp. contends that the FCC acted arbitrarily and violated its duty of reasoned decision-making when it issued a public notice stating that the Sec. 272 safeguards sunset for Verizon’s operations in New York ‘by operation of law,'” the court said in an opinion issued Tues.: “AT&T argues that the record here demonstrates that Verizon retains significant market power, justifying the need for continued application of the Sec. 272 safeguards in New York. Thus, according to AT&T, the FCC was obliged to provide a reasoned explanation for its failure. We reject these claims.”

The high-profile investment of wireless pioneer Craig McCaw in ITFS spectrum has raised the stakes as the FCC considers a proposal to revise the rules for ITFS/MDS spectrum. McCaw is expected to have more to say about his plans and the business he’s building in a speech Wed. at the Wireless Communications Assn. meeting in Washington. McCaw met with FCC Chmn. Powell in April to talk about his views on ITFS. He’s viewed as being a force behind a pending FCC proposal to take 6 MHz from ITFS, combine it with another 6 MHz, and offer the spectrum for sale through auction for advanced services.