Covering the gamut of network funding, spectrum resources, and construction, the June meeting items will impact nearly all providers of 5G and other next-generation technologies and deserve close attention. You will find more information on the significant June meeting items after the break:

RDOF Phase I Auction Procedures: The FCC’s draft Public Notice would establish RDOF Phase I auction procedures that largely mirror the agency’s initial proposals for the program. In particular, the FCC would require auction participants to bid by census block group and establish an auction weighting mechanism that favors higher-speed, lower-latency services when awarding support. Auction winners would be required to offer service at the bid-upon performance level to 40% of the supported locations by the end of the third full calendar year following funding authorization and to an additional 20% of locations each year thereafter. As expected, service providers would be required to file a short-form application including basic ownership, technical, and financial information to participate in the auction, followed by a long-form application from auction winners providing detailed network descriptions and deployment plans. Auction winners would be obligated to obtain a letter of credit that would increase in value until the service providers begin to satisfy their deployment milestones. Service providers would not be required to receive designation as an eligible telecommunications carrier by the FCC or state authority to participate in the RDOF Phase I auction, but they would need to receive such designation before receiving any funding under the program.

Expanding High-Band Frequency Access: The FCC’s Notice of Proposed Rulemaking and Order would seek comment on proposed changes to the rules governing the use of the 70/80/90 GHz Bands to support wireless 5G backhaul and broadband services onboard aircrafts and ships. First, the FCC would propose changes to antenna standards for the 70 and 80 GHz Bands to permit the use of smaller antennas and ask whether it should make similar changes to the standards for the 90 GHz Band. Second, the FCC would seek input on authorizing point-to-point links to endpoints in motion in the 70 and 80 GHz Bands and classifying those links as “mobile” services to support new offerings. Third, the FCC would request comment on whether it should change its link registration process for the 70/80/90 GHz Bands to eliminate never-constructed links from third-party registration databases, thereby opening the spectrum for new registrations. Finally, the FCC would propose power limits and other technical and operational rules to prevent harmful interference to incumbent operations in the 70/80/90 GHz Bands. As the 70/80/90 GHz Bands are currently allocated to co-primary Federal and non-Federal use, the FCC would coordinate any rule changes with affected federal agency incumbents through the National Telecommunications and Information Administration.

Clarifying State/Local Wireless Review: The FCC’s Declaratory Ruling and Notice of Proposed Rulemaking would clarify agency rules implementing Section 6409(a) of the Spectrum Act of 2012, which streamlines state and local reviews of requests to modify existing wireless infrastructure. Section 6409(a) and associated FCC rules require state and local governments to approve modification requests for existing wireless towers and base stations within 60 days as long as the modification does not “substantially change” the physical dimensions of the tower or base station. However, confusion exists among service providers and government authorities on when this 60-day shot clock begins. The FCC would clarify that the 60-day shot clock begins to run when a requester takes the first procedural step in a locality’s application process and submits written documentation showing that a proposed modification is eligible for streamlined treatment under Section 6409(a). The FCC would find that this approach would prevent localities from effectively postponing wireless network modifications through multiple interim procedural hurdles. The FCC also would clarify what types of infrastructure modifications represent a “substantial change” that would not qualify for streamlined treatment under Section 6409(a).

You will find more details on the most significant July meeting items after the break:

Mid-Band Spectrum Auction: The draft Order would set the stage for a 2.5 GHz Band auction by eliminating rules that prevented non-educational institutions from obtaining licenses, allowing commercial providers to enter the Band. New licensees would no longer be required to use the spectrum for educational purposes and would possess more flexibility in leasing spectrum to others. The auction would not affect existing contracts or leases for 2.5 GHz Band spectrum, which would remain in place. The FCC plans to provide rural Tribal organizations with a priority filing window for new 2.5 GHz Band licenses, but would not implement a similar window for educational institutions. After the close of the priority filing window, the FCC would auction the remaining 2.5 GHz Band spectrum in 100 megahertz or 16.5 megahertz blocks at the county level.

High-Band Spectrum Auction: The draft Public Notice would establish rules for the auction of Upper 37 GHz Band, 39 GHz Band, and 47 GHz Band spectrum for commercial mobile use. Auction participants would first bid on generic spectrum blocks covering partial economic areas. The bid amounts in this round would determine the size of the incentive payments received by incumbent 39 GHz Band licensees. Following the generic bidding round, auction participants would bid on frequency-specific spectrum blocks, with the aim of creating contiguous block assignments. The FCC plans to provide bidding credits to small businesses and rural service providers to encourage auction participation. The FCC would accept applications to participate in the auction beginning August 2, 2019, with the auction scheduled to start on December 10, 2019.

Connected Care Pilot Program: The draft Notice of Proposed Rulemaking (“NPRM”) would seek input on the eligibility requirements, application processes, goals, and evaluation metrics for the proposed Connected Care Pilot Program. The FCC anticipates operating the Connected Care Pilot Program as a new program within the Universal Service Fund (“USF”), supported by an additional assessment on telecommunications providers to be added to the contribution factor that will slightly increase USF contributions. The FCC therefore says it does not plan on diverting resources from existing USF programs to support the Connected Care Pilot Program. Moreover, in a reversal from its initial inquiry last year on the Connected Care Pilot Program, the FCC is no longer considering restricting program participation only to facilities-based eligible telecommunications carriers (“ETCs”); rather, service providers do not even have to be ETCs. Comments on the NPRM will be due 30 days after Federal Register publication of the NPRM, with reply comments due 30 days later.

Transport Services Reform: The draft Orders would relieve price cap carriers from pricing regulation of their lower-speed, legacy transport services known as Time Division Multiplexing (“TDM”) transport. The FCC would find that sufficient competition exists in the provision of TDM transport services to justify eliminating the pricing controls. Although the FCC already voted to eliminate TDM transport service pricing controls in 2017, a federal court subsequently returned the issue to the agency to allow for full notice and comment on the issue. The FCC also would forbear from enforcing its unbundling requirements for legacy transport services known as DS1 and DS3 transport, subject to certain conditions and a multi-year transition period. The forbearance would free price cap carriers from providing such legacy transport services based on regulated rates.