Tag: fcc

A Fatal Exception Has Occured In Your White Spaces Sensing Device

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It would be funny were it not so easy for NAB to exploit.

The Microsoft prototype shut itself down last week and would not restart. Users familiar with MS products that are scheduled for release, never mind pre-beta versions, will find this so unremarkable as to wonder at the sensation. It goes up there with “Apple denies latest i-rumor.”

Unsurprisingly however, the folks opposed to the use of white spaces (primarily the broadcasters and the wireless microphone folks, with a dash of the cable folks thrown in for good measure), will spin this as the entire technology for sensing if a channel is occupied as “failing.” This ignores the other prototypes of course (Phillips and Google), and ignores the fact that the failure had nothing to do with the sensing (the thing being tested). Finally, of course, it ignores the fact that this is a proof of concept prototype.

The fact is, that the FCC testing shows that “sensing” as a technology works at levels that easily detect operating television channels and even wireless microphones. In fact, it is too bloody sensitive. In a foolish effort to appease the unappeasable, the companies submitting prototypes keep pushing the level of sensitivity to the point where the biggest problem in recent rounds appears to be “false positives.” i.e., it is treating adjacent channels as “occupied.”

As a proof of concept, that should be a success. The testing demonstrates that you can detect signals well below the threshold needed to protect existing licensees. Logically, the next step would be to determine the appropriate level of sensitivity to accurately protect services, set rules, and move on to actual device certification based on a description of a real device.

But that is not how it works in NAB-spin land. Instead, NAB keeps moving the bar and inventing all sorts of new tests for the devices to “fail.” For example, the initial Public Notice called for prototypes for “laboratory testing.” MS and Phillips submitted prototypes that performed 100% in the lab. But then, the MS people did something very foolish, but very typical — they decided their laboratory device was good enough for field testing. No surprise, it did not work as well in the field as in the lab. As this was a laboratory prototype, the failure to perform flawlessly in the field should have been a shrug — it would have been astounding beyond belief if a prototype designed for the lab had worked perfectly the first time in the field. But the fact that the prototype did not work in the field was widely declared a “failure” by NAB, which unsurprisingly gave itself lots of free advertising time to spin the results this way.

So the FCC went to round two, and again the NAB and white spaces opponents have managed to move the bar so they can again declare a “failure.” Back in 2004, when the FCC first proposed opening the white spaces to unlicensed use, it concluded that operation of white spaces devices would not interfere with licensed wireless microphone users. The FCC has never reversed that determination. Unsurprisingly, businesses developing prototypes according to the FCC’s proposed rules have not taken particular care to address wireless microphones. Because the FCC explicitly said “don’t worry about them.”

But suddenly, if the devices can’t accurately sense and detect wireless microphones, they will be “failures.” It doesn’t matter that the devices have proven they can protect wireless microphones. It doesn’t matter that Google has proposed additional ways of protecting wireless microphones besides sensing. As long as NAB can frame what defines “failure” (rest assured, there will never be any successes of NAB gets to call the tune), and can keep changing that definition at will, the political environment will ensure that the actual engineering is irrelevant.

Which is why the companies need to stop trying to placate the NAB by agreeing to an endless series of tests with ever-shifting criteria. And OET needs to write up a report that does what the initial notices promised to do, use the data collected from prototypes to determine if the concept works and, if so, to set appropriate technical standards. The prototypes have proven they can detect signals with a sensitivity better than an actual digital television set or wireless microphone receiver, so the “proof of concept” aspect stands proven. Rather than buy NAB spin, the next step should be to determine what level of sensitivity to set as the standard.

Hopefully, the Office of Engineering and Technology, which is conducting the tests, will not suffer the fate of the Microsoft prototype and shut down under pressure.

Stay tuned . . . .

Brief Update On $16 Billion Termites

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SO it turns out in 2003, the FCC amended the rules — but only with regard to higher power services governed by Subpart F. These higher power services were explicitly made secondary to any new entrants following the digital transition. (See 47 CFR 74.602(h)(3)). But the lower power wireless microphones governed by Part H (47 CFR 74.800 et seq) were not so designated.

I suppose an argument can (and will) be made that the FCC’s 2003 BAS Order designated all BAS services as secondary to new entrants in Channels 52-69. But it should be reflected in the rules, and failure to modify 47 CFR 74.802 creates legal headaches at the very least. And, even if the argument is accepted, it doesn’t solve the problem of all the legacy equipment in the hands of tens of thousands of users who will potentially be screwing up the new licensed wireless systems.

Stay tuned . . . .

700 MHz Aftermath: Verizon, AT&T & the $16 Billion Termites.

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Imagine you just spent a fortune on some excellent beachfront property, only to discover some termites in the basement. Now imagine that the only way to get rid of the termites involves some toxic chemicals that may arouse the ire of the environmentally conscious locals. What do you do? Learn to live with the termites, or spray and tell your green neighbors to deal?

Oddly, Verizon and AT&T now find themselves in a similar mess — if we substitute “wireless microphones” for “termites.” Verizon and AT&T (As well as a bunch of other folks) just spent a boatload of cash on licenses in the reclaimed analog television spectrum. The FCC has rules in place to migrate the broadcasters — both full power and low power. But — as far as I can tell — no one has plans to migrate the wireless microphone folks, who operate on vacant channels in the band. While in theory wireless microphones are a secondary licensed service and notifying the licensees that channels 52-69 are off limits after the digital conversion, the situation is a little more complicated. As comments filed in white spaces proceeding confirm, wireless microphones are bloody everywhere — with huge numbers of users buying and operating them without licenses.

The NAB and the FCC have turned a blind eye to proliferation of unlicensed wireless microphone use (despite the NAB’s usually firm stand against unauthorized use of “their” spectrum), both because the wireless microphones don’t actually cause any interference with television and because the “unauthorized wireless microphone user community” (which sounds so much better than “pirates”) includes megachurches, Broadway groups, and other warm cuddly folks able to gather political support. Indeed, so great is the political protectzia for the unauthorized wireless microphone user community that the FCC is, apparently, requiring that unlicensed devices in the white spaces have the ability to sense and protect these illegal wireless microphone users. (Hence Google’s recent extension of an olive branch which NAB promptly grabbed and started thwaking Google over the head. D’oh!)

AT&T, Verizon, and the rest of the 700 MHZ auction winners therefore face a bit of a dilemma. They just dropped a bundle on the 700 MHZ, and damned if they want to set precedent by allowing a bunch of illegal squatters to use “their” spectrum. Heck, if they’d thought of it earlier, they’d probably have initiated a rulemaking to migrate the legal users.

In fact, under a fair reading of the rules, if the FCC does nothing, licensed wireless microphone systems may enjoy equal or superior rights to 700 MHz Auction winners. OTOH, no one involved is stupid about the politics, giving an incentive to maintain a low profile. If you don’t mind telling shareholders that the NFL may have superior rights in the spectrum you just paid $16 Billion for.

Meanwhile, for those of us happy to see the NAB and the wireless microphone folks get their comeuppance, while not weeping overmuch for the incumbent wireless winners, one word: SCHWEET.

More below . . . .

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Google Makes A White Spaces Concession.

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In yet another chapter of “Why Citizens Movements Are Citizen Driven,” I think Google has conceded too much too soon in its letter today to the FCC. Briefly, in an effort to try to head off the persistent claims that the white spaces prototypes have “failed” and to move out of the wireless microphone trap that opponents of white spaces have used so effectively, Google proposes a combination of “beaconing” (give users of wireless microphones a low power gadget that mimics a dtv signal, thus denying use of the vacant channel to any white spaces device (WSD) in the immediate vicinity, as the WSD will interpret the channel as “active”) combined with setting aside channels 36-38 for wireless microphones, and requiring geolocation and a “permission to activate” signal from higher power stationary devices.

For reasons discussed below, I am not happy . . .

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700 MHz Aftermath: Assessing A Rather Complicated Result — But Not A Disaster As Some Maintain.

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The intervention of the Jewish holiday of Purim, which is celebrated by getting drunk until you cannot tell the difference between Verizon winning the C Block and Google winning the C Block, kept me from posting sooner. I would have held off until I could give more details, but there are so many people rushing to call it a disaster that a few words need to be said here.

O.K., Google didn’t win, but Echostar did, giving me a .500 batting average in prophecy against the conventional wisdom. I’m not covinced that Echostar winning gives us a third pipe (Martin’s suggestions about combining this with other spectrum assets to the contrary). But even if not, it is important for keeping Echostar competitive with cable and with DIRECTV (which will have an advantage in programming assests). I shall try to do a more detailed analysis of Echostar and what the E Block does for them in a future post.

It is also interesting to note that some non-incumbents like Cavtel picked up licenses, although I am not as enthusaistic about this for competition as Martin was at the press release.

That said, I do not see how the rules could have been structured any better without barring Verizon and AT&T from playing. While we might have done better for new entrants after all with smalled licenses rather than REAGs, as demonstrted by Echostar doing an end run to assemble a near national footprint after they begged and pleaded to have the FCC offer a national license, I can’t say for sure (I’ll have a longer discussion on this later, and I expect Greg Rose will have some things to say on his blog once he has crunched the numbers). My preliminary conclusion is that Verizon (and to a lesser degree AT&T) was simply determined to get the spectrum it wanted and did not let anything stand in its why. The fact that Verizon paid $9 MHz/Pop for a B block license for Chicago, and that Verizon and AT&T spent over $16 billion of the approximately $19 billion raised should tell anyone who cares about the reality all they need to know. Verizon and AT&T were not “bargain hunting.” They were at each other’s throats and cutting out anyone who dared to get in their way. The only way to stop them was to keep them out entirely, and there was not a heck of a lot of support for that from the Hill or at the FCC beyond the Dems.

I think Commissioner Adelstein gives a fair assesment when he says we won on revenue and openness and lost on diversity and competition. But again, the only way we could have done any better was by adopting auction rules that banned Verizon and AT&T from playing and by using aggressive means to address minority and women ownership (as MAP requested as early as March 2006). Perhaps now Congressional Democrats will add their voices to those of Commissioners Adelstein and Copps on restoring the minority bidding credit and supporting incumbent exclusions or — at a minimum — restoring the spectrum cap.

As it was, thanks to anonymous bidding, Echostar was able to do an end run and acquire a national footprint — something previously denied to it in the AWS Auction in 2006. And, while AT&T and Verizon got most of the licenses, they had to pay through the nose to get them — rather than sopping them up dirt cheap as happened in the AWS auction (where licenses equivalent to the A & B block licenses went for 45 cents MHZ/pop not $9 MHZ/pop). This auction attracted more new bidders and more minority bidders than previous auctions, so the field was ripe for a success on these fronts. But they were simply outspent by Verizon and AT&T.

To conclude, unlike the utter failure of the AWS auction (which everyone else hailed as a success — despite the incumbents winning more licenses for less money), this auction produced some very positive results. But it also shows us the limit of what purely competitive auctions will do. Neither this auction nor freeing more spectrum for future auctions, on their own, will provide us with a third pipe or introduce new competitiors in wireless. The advanatges enjoyed by incumbents in a relatively mature industry (as opposed to back in the early/mid-1990s when the first auctions were conducted) are simply too great to overcome just by “leveling the playing field.”

Finally, one last question remains: Why didn’t Qualcom drop their bid on D Block? Why did they tie up all that eligibility, instead of using it to go after more E Block licenses? For us spectrum geeks, this is the equivalent of asking Why did the Minbari surrender at the Battle of the Line (best answer from a friend of mine: “turns out Echostar bidders have Qualcom souls”). Did Qualcom hope they could keep the D Block for such a low price? Did they wish to avoid a penalty for dropped bids by the time they realized no one would bid on D Block? Hopefully, we will find out.

Stay tuned . . . .

The FCC's New Broadband Data Gathering: Even the Deregulators Are Losing Patience.

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It is a delightful bit of timing that this piece on European broadband comes the same day the FCC voted to amend its broadband data collection for the annual “State of the Broadband” Report. I’d say it was a happy coincidence, except that there are so many articles about how Europe is kicking our broadband bottom these days that the odds were good someone would publish something contrasting the growing penetration (and associated economic benefits) in Europe with the anemic growth in the U.S.

Which highlights the key take away from the FCC’s decision to ramp up data gathering and propose looking at pricing. Even the Republicans in Washington are starting to lose patience. I will provide analysis of the substance (as far as we can tell before an order is published) in a later post, but this point is sufficient important it bears posting on its own.

You will find no shortage of telco/cable shills or hardcore deregulators willing to sing the happy happy joy joy song over our current “wildly competitive” broadband market, or explain why these international rankings are misleading, irrelevant, or just plain wrong, the song no longer gets applause and the excuses are wearing thin. All five FCC Commissioners went to the Consumer Electronics Show this year. They’ve gone on tours of Silicon Valley, talked with venture capitalists and start ups, traveled around Europe and Asia, and — most importantly — are not stupid. In 2005, the industry promised big things if the FCC would only deregulate them and set them free. It’s now 2008. In that time, we have seen a parade of other countries streak by us while we plod along and fall increasingly far behind.

Do not let the last minute squabbling between the Commissioners about the details of the Report and upgraded standards fool you. While the Democrats would definitely like to see more done to get at real data, and while McDowell still frets that the cost of collecting data outweighs the benefits and that using labels for speed tiers is too subjective, everyone wants to find out what the real state of broadband deployment is and how we are going to make it available and affordable for everyone. We’re done with happy songs, the FCC is signaling. If industry wants to avoid the kind of massive reregulation the FCC and Congress would bring to bear under a Democratic administration, you need to start getting it in gear and providing real data. Whether industry will take the hint, or whether it will still find it preferable to remain in a state of denial, still remains to be seen.

Stay tuned . . . .

700 MHz: Although Apparently The FCC Decided to Give Headlines . . .

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No sooner did the FCC clarify that they would lift anonymity after they collected the money when Martin held a press conference and the FCC released the results. Here are the headlines:

1) Verizon won C Block and a boatload of licenses;

2) AT&T took a boatload of licenses;

3) Google didn’t win anything (stupid oak leaves!).

I will have more details as I can track them down, and more analysis later. I also metaphorically owe Commissioner McDowell a dollar, for his prediction that the new entrants wouldn’t bite on the big C.

Stay tuned . . .

700 MHz Update: FCC Severs D Block, Refers Cyren Call Allegations To Inspector General.

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The FCC can certainly move fast when it wants to — and when it has had a few weeks to get used to the idea. The FCC just released a public notice that it will “de-link” the D Block from Auction 73, and will release the names of the winners as soon as the Commission collects the payments (ten days after it issues the official notice that the auction is over and that parties now need to file “long forms” and pay up).

Also of importance, Chairman Martin has referred the question of whether Cyren Call made all manner of demands of Frontline, and did this break any rules to the Office of the Inspector General. This extremely important detail was buried in this somewhat less than stellar Washington Post article about our letter to the FCC calling for an investigation. I say “less than stellar” because, in addition to “burying the lead” big time, the reporters did not trouble themselves to contact me despite that fact that (a) I broke this story in the first place (only narrowly beating out Dow Jones’ Cory Boles); (b) I drafted the friggin’ letter. I therefore recommend this far superior article in eWeek (i.e., it mentions me and links to the relevant blog entry — a clear mark of superior journalistic skills).

A bit more analysis below . . .

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Quick 700 MHz Updates

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First, we at PISC have sent a letter to the FCC asking the FCC to sever the D Block issues, announce the winners of the rest of the auction, and thoroughly investigate the allegations around Cyren Call and its pre-auction discussion with Frontline. (Martin has apparently already circulated something that severs D Block, so they can announce results as soon as the other Commissioners vote and the wireless bureau finishes the necessary housekeeping.)

Perhaps more importantly for the long run, we ask that the FCC take a hard look at whether to try to fix the public/private partnership or possibly do something else. The FCC has a lot of options here. And with the auction clearing over $19 Billion and the statutory requirement to start an auction before January 28, 2008 fulfilled, the money pressure and time pressure are off. We have time to have a public process and do it right.

Second, here is Kevin Martin’s official statement explaining why the auction was a huge success (and, by implication, why he did a bang up job getting this done). Martin, sensitive to the grumblings from folks who say that different rules could have gotten more revenue, included this handy chart showing that, on a pure revenue basis, the 700 MHz auction is the most successful FCC auction ever.

(In the reading the tea leaves department, I note that the chart subtracts out the D Block bid. And indication the FCC won’t just pass off the D Block to the lone low bidder? Maybe, but no surprise if that turns out to be the case.)

You can find Tate’s statement here. I have not seen official statements from any of the other offices.

Stay tuned . . . .

That's It! The 700 MHz Auction Is Ovah ! On to Tasting And Judgment . . . .

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At long last, the FCC went three rounds without any new bids and declared Auction 73 (better known as Battle 700 MHz) closed. You can see the final provisional winning bids on the FCC’s Auction 73 page here.

Of course, we are all waiting to see who won what licenses, particularly C Block. But we have some preliminaries to go through first. Most importantly, the FCC has to make a decision on whether to sever the D Block from the Auction so that it can investigate what happened, especially the allegations around Cyren Call and Morgan O’Brien.

Even with the information available, Auction 73 has clearly succeeded on a number of key fronts. Unsurprisingly, I am inclined to credit anonymous bidding with the enormous surge in value for the licenses. Even if incumbents ended up walking away with the lion’s share of the licenses, at least they paid market value for a change (as opposed to the AWs auction, where they picked them up dirt cheap). I also note that at the end of the day, the FCC has only 8 unclaimed licenses (compared with 35 for AWS). As Greg Rose observed previously on his blog, there is good reason to believe we saw a lot of new people bidding.

It remains to be seen, however, whether the auction brought in new competitors or if, as the conventional wisdom predicted, AT&T and Verizon walked off with the big prizes. In particular, we all wait with baited breath on who won C Block.

Finally, two points on D Block. First, even if the experiment failed, that did not make it a dumb move. Babe Ruth used to lead the league in home runs and strike outs, because you can’t hit home runs unless you swing at a lot of pitches. With the FCC trying to satisfy the mandate of Congress to promote a national interoperable public safety network, but with insufficient spectrum allocated and with insufficient funds to build it. So the Commission tried to think outside the box and took a chance. turns out — for reasons still unknown — it did not work out.

Always punish innovators if things don’t go exactly right and you run out of innovators damn quick. Anonymous bidding was also an innovation. So is the open device condition. Before folks rush out to buy stink bombs to lob at Martin and the other Commissioners over D Block, consider if we want the next FCC reduced to such political timidity that we always get the same auction rules again and again and again, because the price of innovating is too high.

Second point: the FCC has a silver lining here. With the auction over, the FCC has fulfilled its statutory obligation to hold an auction commencing by January 28. Not only can the FCC take the time it needs to consider what to do, it can also consider other solutions besides trying to fix up D Block or even auctioning it off the highest bidder. That could include non-exclusive licenses, real time auctions, or even an unlicensed commons — if that would best serve the public interest.

I’m not saying what the best solution for D Block is, because we don’t know enough yet. It will depend on a lot of factors, such as who won the other licenses and how much stomach the FCC has to innovate. But I’m hoping that the FCC and others, when assessing Auction 73, will consider the successes as well as the D Block failure. Otherwise, they will vote to do the politically safest thing. Not a result I’d like to see.

stay tuned . . . .