Since new FCC chairman Julius Genachowski took office, his agency has continually spoken of the need to find more spectrum for mobile broadband in the US ‘ and as virgin frequencies disappear, much of this will need to come from existing users in other areas such as defense organizations. One possibly easy target is the massive 100MHz of spectrum that is used for mobile satellite and which is allowed to support the hybrid satellite/terrestrial services known as ATC.
The use of ATC (Ancillary Terrestrial Component) to support dual-mode devices and services ‘ where users are on a conventional cellular network but roam onto satellite where there is limited 2G/3G coverage ‘ has already shown how the business model for mobile satellite can be improved, with more affordable tariffs and attractive handsets. Partnerships with ATC-enable satellite operators can also enable cellcos to extend their reach into remote areas and into markets where satellite thrives, such as emergency response.
Now the FCC may have its eye on broader uses for the spectrum in which ATC can live, and has reportedly already had conversations with one of the license holders, SkyTerra, and with Qualcomm, which along with Infineon makes chipsets for hybrid devices. Initially, ATC was supported in three specifically allocated licenses in 2GHz, which went to the main pioneer of ATC technology, MSV, plus Terrestar and ICO. MSV is now part of the SkyTerra group and has a spectrum deal with Inmarsat, while Terrestar is backed by EchoStar and recently announced the first smartphone as part of its carrier deal with AT&T ‘ the Genus. SkyTerra and TerreStar and their holding companies have complex cross-shareholding relationships, though they are building different MSS networks.
As well as these licenses, ATC has steadily been permitted in more existing mobile satellite bands, notably L-Band, where Globalstar and Iridium plan hybrid services, and S-Band. In total, the US has 100MHz of ATC-enabled spectrum (40MHz apiece in S-Band and L-Band). Dean Brenner, VP of government affairs at Qualcomm, told Stacey Higginbotham of GigaOM that the FCC had been very interested in ‘knowing more about ATC’ while SkyTerra pointed out that, while it could take years and a lot of politics to free up further TV, defense or other bands, mobile satellite frequencies could be online within a couple of years. This is because much of the debate has already been finished ‘ in 2003, the FCC, despite objections from cellcos, said MSS operators could offer broadband provided it had both terrestrial and satellite components (something enabled technologically by ATC). With these networks still costing huge sums to build, many analysts believe the ATC license holders’ best bet is to lease their spectrum to wireless carriers and leave them to roll out the terrestrial component.
Although cellcos like AT&T are increasingly interested in partnering with MSS operators, the wireless operators’ industry body, the CTIA, is hostile to competition fro mobile satellite and would rather see the ATC spectrum repurposed for its members. In a filing with the FCC last week it asked for more spectrum, including that used by satellite providers, and wrote: ‘CTIA urges the Commission to undertake an examination of spectrum allocated to US satellite providers. CTIA believes that a review of current satellite authorizations, coupled with an assessment of whether such providers are fully and efficiently utilizing their spectrum allocations, will inform whether this spectrum should be reallocated for licensed CMRS [commercial mobile radio services] wireless broadband use.’ The CTIA believes a further 800MHz of spectrum is needed to achieve mobile broadband targets, and is also up against the broadcast industry in its fight to achieve this.