AT&T and the FirstNet Authority are sitting pretty after the FCC voted 4-0 to hand over a chunk of the 4.9 GHz band for the operation of FirstNet’s nationwide public safety network. The 50 megahertz of spectrum in question is reportedly worth up to $14 billion.
But their giddiness might not last too long if the Coalition for Emergency Response and Critical Infrastructure (CERCI) has anything to do with it. CERCI is already threatening to challenge the FCC’s decision in court.
CERCI, backed by T-Mobile and Verizon, has been fighting tooth and nail for the agency to reject calls by the Public Safety Spectrum Alliance (PSSA) to assign the 4.9 GHz band to FirstNet, which runs on AT&T’s network. CERCI lost that fight with Tuesday’s order.
CERCI contends the FCC’s decision to allow the 4.9 GHz band to be accessed by the FirstNet Authority will negatively impact state and local users of the band.
“Just as AT&T profits from commercial use of Band 14 via FirstNet, it will do the same with the 4.9 GHz band. Regrettably, the FCC felt it was more important to gift AT&T with $14 billion in free spectrum for commercial use than to heed the concerns of those on the front lines of public safety communications,” said CERCI Chairman Kenneth Corey in a statement.
New Street Research analyst Blair Levin predicted opponents would fight the FCC’s decision in court. CERCI previously has argued that the FCC lacks statutory authority to award FirstNet Authority the ability to operate beyond the 700 MHz band and that state and local public safety organizations strongly rely on the current allocation of 4.9 GHz.
Of course, defenders of the FCC’s action will challenge those arguments. In a note for investors today, Levin said he expects the appeals process will take at least a year.
He also noted that T-Mobile and Verizon didn’t push as hard as they might have – both at the FCC or in Congress – for several reasons, including the fact they both have deals pending at the FCC. They also don’t want to engage in a fight that might anger FCC Chairwoman Jessica Rosenworcel, a Democrat, or Republican Commissioner Brendan Carr.
Besides, “they think their side will win in court,” he said.
The Brattle Group, a consulting group hired by CERCI to evaluate the band’s value, concluded that the band is worth about $14.3 billion if licensed to use high-power levels and it’s worth about $3.4 billion if licensed at lower power levels in a non-exclusive regime, he noted.
FirstNet: Important milestone
A FirstNet Authority spokesperson said they’re reviewing the order to understand how it may impact its public safety network and users and added that no matter what, the incumbent operations will be protected.
AT&T welcomed the move and reiterated that current 4.9 GHz users will be protected.
“The FCC’s order will protect incumbents and increase usage of this spectrum, boosting public safety’s access to the life-saving capabilities of 5G and helping them serve their communities,” said Rhonda Johnson, executive vice president for Federal Regulatory Relations at AT&T, in a statement.
The national Fraternal Order of Police (FOP) hailed the decision, saying it campaigned hard to beat back the efforts of CERCI to “encroach” upon public safety’s 4.9 GHz spectrum for their own commercial purposes. “Today is a victory for public safety over private profit,” said Patrick Yoes, president of the FOP.
However, the Competitive Carriers Association (CCA) is not a fan. “CCA is disappointed with the FCC’s decision to grant access the 4.9 GHz band to FirstNet and, by extension, AT&T. This move raises concerns about long-term local control of important public safety communication resources and represents an anti-competitive spectrum opportunity for AT&T,” said CCA President and CEO Tim Donovan in a statement.
Game on, or should we say: To be continued.