Wireless cablecos need preferred access to WCS spectrum, Craig Wireless says

Canadian wireless cable operators want preferred access to a certain slice of spectrum so they can improve and expand their TV and high-speed Internet offerings. The request from Image Wireless Communications Inc. and Craig Wireless Systems Inc. comes in comments to Industry Canada’s consultation (Gazette Notice DGRB-06-01) on the auction of spectrum in the 2300 MHz band and fixed wireless access in the 3500 MHz band. An edited excerpt of Craig Wireless’ submission follows. In 1999 when the Department initiated the process of licensing for Multipoint Communication Systems (MCS) for fixed services in the band 2500-2596 MHz, a 10 MHz block of spectrum in the 2150 – 2160 MHz band was set aside for return link for both MCS and MDS (2596-2686 MHz) licensees. The allocation of these bands was consistent with currently available equipment. As the MDS licensee in two markets in Canada, it has been our experience that we consumed our spectrum allotment in the 2150-2160 MHz band rather quickly and with a relatively small number of customers. It quickly became apparent that the allocated spectrum in the 2100 MHz band was insufficient to provide for a large number of users while allowing for high density penetration of the markets. Additional return link spectrum was required. With the initiation of this WCS spectrum auction, the door becomes open for a wide range of services including high-speed Internet access for consumers and small businesses…We appreciate the difficulty of balancing the needs of the MCS/MDS operators with the desire to let the market place value spectrum, however, we need this spectrum to service customers in both the urban and rural markets. Without additional spectrum it is impossible to provide a competitive access alternative. The WCS band is the only remaining spectrum available with equipment currently available allowing for an aggressive rollout of services. If we are not given some bidding preferences it is doubtful we could out bid the more wealthy players in the high-speed Internet business. That outcome could seriously affect our ability to roll out a broadband wireless Internet product, especially in those rural areas close to urban markets where alternatives to upstream frequencies are difficult to find… We have followed the progress of the National Broadband Task Force which presented its report to government this summer. As an existing operator of MDS services, we already provide a significant service to the rural and aboriginal communities emphasized within the report as being a prime focus of need. We are one of the service providers already operating to try and fill the mandate of the Task Force. Access to additional spectrum in the WCS band would allow us to move forward in achieving the stated goals of broadband access for rural and aboriginal communities. The MDS licensing process took place a number of years ago at a time when there was no spectrum auctions, presumably because at that time the supply of spectrum outweighed demand. Indeed, during the public comparative process we participated in to win the right to use this spectrum, few, if any others, save for some anti-competitive wireline cable operators, vied for our licences. Nor were our licences issued without commitments. We committed to build vast networks in both rural and urban areas with time sensitive rollout requirements. We also committed to pay licence fees including fees directly related to all earned revenues. As importantly we took the risk and made the commitment to built a business around a digital wireless delivery network at a point in time when few others dared venture there. In short, our commitments are substantial and our licences did not come cheap. We strongly believe that, just like the 3.5 GHz licence holders that will follow us into the wireless business, we too need to be given the maximum possible flexibility in our choice of services and technologies so that we can adapt to an ever changing business and consumer environment. Image and Craig’s full submissions can be found online here. For more on this story, see the next edition of CCR affiliate publication, Report on Wireless.

Wireless cablecos need preferred access to WCS spectrum, Craig Wireless says

Broadcast | October 26, 2001

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