FCC Adopts AWS H Block Service and Technical Rules Ahead of Commercial Spectrum Auction

Statutory Directive and Band Allocation

In a Report and Order adopted on June 27, 2013 (FCC 13-88, WT Docket No. 12-357), the Federal Communications Commission established comprehensive service and technical rules for the Advanced Wireless Services (AWS) H Block spectrum. This action implements Section 6401 of the Middle Class Tax Relief and Job Creation Act of 2012 (Spectrum Act), which directs the Commission to allocate the 1915-1920 MHz and 1995-2000 MHz frequency bands for commercial use and award initial flexible-use licenses through competitive bidding by February 23, 2015.

Under the Spectrum Act, auction proceeds from these bands are designated for deposit into the Public Safety Trust Fund, which provides funding toward the nationwide interoperable public safety broadband network deployed by FirstNet. The Commission determined that its prior primary allocation of both 5 megahertz segments for non-Federal Fixed and Mobile services satisfied the statutory allocation mandate and that licensing under Part 27 flexible-use rules would promote the efficient deployment of next-generation mobile broadband.

• Lower H Block: 1915-1920 MHz paired for mobile and low-power fixed uplink operations.
• Upper H Block: 1995-2000 MHz paired for base station and fixed downlink operations.
• Licensing area: Economic Areas (EAs), including a distinct EA license for the Gulf of Mexico.

Harmful Interference Determinations and Technical Rules

The Spectrum Act required the FCC to determine whether the 1915-1920 MHz and 1995-2000 MHz bands could operate without causing harmful interference to commercial mobile licensees in the 1930-1995 MHz Broadband Personal Communications Service (PCS) downlink band. Applying its standard regulatory definition under Section 2.1 of its rules, the Commission found that both bands can be utilized without causing harmful interference, provided operations adhere to tailored technical rules.

For the Upper H Block (1995-2000 MHz), base station transmitter power limits were established at 1640 watts Equivalent Isotropically Radiated Power (EIRP) for non-rural areas and 3280 watts EIRP for rural counties with population densities of 100 or fewer persons per square mile. Transmissions must meet a general out-of-band emission (OOBE) attenuation of 43 + 10 log10 (P) dB outside the band, including into 1930-1995 MHz PCS and the 2000-2005 MHz AWS-4 band. A more restrictive OOBE limit of 70 + 10 log10 (P) dB was established for emissions into the 2005-2020 MHz AWS-4 uplink band.

For the Lower H Block (1915-1920 MHz), the Commission instituted a mobile and fixed power limit of 300 milliwatts (25 dBm) EIRP. Out-of-band emissions into the 1930-1995 MHz PCS downlink band must be attenuated by at least 70 + 10 log10 (P) dB (-40 dBm/MHz). Lower H Block operators must also provide written notice to PCS A Block (1930-1945 MHz) licensees upon first commencing commercial service to a consumer in a market. A boundary field strength limit of 47 dBuV/m was established across common geographic borders between adjacent EA licensees.

• Upper H Block Power Limits: 1640 W/MHz EIRP (non-rural) and 3280 W/MHz EIRP (rural).
• Upper H Block OOBE Limits: 43 + 10 log10 (P) dB into 1930-2005 MHz; 70 + 10 log10 (P) dB into 2005-2020 MHz.
• Lower H Block Power Limits: 300 milliwatts EIRP (25 dBm) for mobile and fixed devices.
• Lower H Block OOBE Limit: 70 + 10 log10 (P) dB into the 1930-1995 MHz PCS band.
• Border Field Strength Limit: 47 dBuV/m at EA boundaries unless alternate agreements are reached.

Cost-Sharing and Relocation Reimbursement Obligations

To provide unencumbered spectrum, previous clearing activities were conducted by UTAM, Inc. in the 1910-1930 MHz band and Sprint Nextel, Inc. in the Broadcast Auxiliary Service (BAS) 1990-2025 MHz band. Under the adopted cost-sharing rules, winning bidders in the H Block auction are obligated to pay their pro rata share of these historical clearing expenses within thirty days of the grant of their long-form license applications.

The total reimbursement amount allocated to the Lower H Block is $12,629,857 owed to UTAM, representing twenty-five percent of UTAM's total microwave clearing costs. For the Upper H Block, the relocation obligation owed to Sprint is $94,875,516, representing one-seventh of total eligible BAS relocation expenses. Cost-sharing obligations are apportioned based on the ratio of the gross winning bid of each EA to the sum of all winning bids in the initial auction, provided that licenses covering at least forty percent of the U.S. population are won. A population-based formula applies if less than forty percent of the population is licensed in the initial auction.

• UTAM reimbursement pool: $12,629,857 for Lower H Block clearing.
• Sprint BAS reimbursement pool: $94,875,516 for Upper H Block clearing.
• Payment deadline: 30 days following the grant of the long-form license application.
• Upper H Block cost-sharing sunset: 10 years following issuance of the first license.

Licensing, Performance Benchmarks, and Competitive Bidding

H Block authorizations will carry an initial ten-year license term with subsequent ten-year renewal terms under Part 27 rules. The Commission adopted specific performance requirements to ensure buildout and prevent spectrum speculation. Discontinuance of service is defined as 180 consecutive days without serving an unaffiliated customer (or without operation for private internal communications) following the interim benchmark.

Auctions for H Block licenses will follow standard Part 1 competitive bidding rules. Bidding credits are available to qualifying designated entities: a 15 percent credit for small businesses (average gross revenues not exceeding $40 million for the prior three years) and a 25 percent credit for very small businesses (average gross revenues not exceeding $15 million for the prior three years). Pursuant to Section 6004 of the Spectrum Act, applicants must also certify that they are not barred on national security grounds from participating in federal auctions or receiving grants.

• Interim Buildout: 40 percent population coverage within 4 years of initial grant.
• Final Buildout: 75 percent population coverage within 10 years of initial grant.
• Interim Failure Penalty: 2-year reduction in license term and acceleration of the final buildout deadline to year 8.
• Final Failure Penalty: Automatic license termination without Commission action for non-compliant EAs.
• Small Business Credits: 15 percent credit for revenue under $40 million; 25 percent credit for revenue under $15 million.