FCC Undoing Rules That Make It Easier For Small ISPs To Compete With Big Telecom

FCC Undoing Rules That Make It Easier For Small ISPs To Compete With Big Telecom

An anonymous reader quotes a report from Motherboard: The Federal Communications Commission is currently considering a rule change that would alter how it doles out licenses for wireless spectrum. These changes would make it easier and more affordable for Big Telecom to scoop up licenses, while making it almost impossible for small, local wireless ISPs to compete. The Citizens Broadband Radio Service (CBRS) spectrum is the rather earnest name for a chunk of spectrum that the federal government licenses out to businesses. It covers 3550-3700 MHz, which is considered a “midband” spectrum. It can get complicated, but it helps to think of it how radio channels work: There are specific channels that can be used to broadcast, and companies buy the license to broadcast over that particular channel. The FCC will be auctioning off licenses for the CBRS, and many local wireless ISPs — internet service providers that use wireless signal, rather than cables, to connect customers to the internet — have been hoping to buy licenses to make it easier to reach their most remote customers.

The CBRS spectrum was designed for Navy radar, and when it was opened up for auction, the traditional model favored Big Telecom cell phone service providers. That’s because the spectrum would be auctioned off in pieces that were too big for smaller companies to afford — and covered more area than they needed to serve their customers. But in 2015, under the Obama administration, the FCC changed the rules for how the CBRS spectrum would be divvied up, allowing companies to bid on the spectrum for a much smaller area of land. Just as these changes were being finalized this past fall, Trump’s FCC proposed going back to the old method. This would work out well for Big Telecom, which would want larger swaths of coverage anyway, and would have the added bonus of being able to price out smaller competitors (because the larger areas of coverage will inherently cost more.) As for why the FCC is even considering this? You can blame T-Mobile. “According to the agency’s proposal, because T-Mobile and CTIA, a trade group that represents all major cellphone providers, ‘ask[ed] the Commission to reexamine several of the […] licensing rules,'” reports Motherboard. The proposal reads: “Licensing on a census tract-basis — which could result in over 500,000 [licenses] — will be challenging for Administrators, the Commission, and licensees to manage, and will create unnecessary interference risks due to the large number of border areas that will need to be managed and maintained.”

Read more of this story at Slashdot.

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