Federal Communications Commission DA 14-883
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter ofImproving Public Safety Communications in the 800 MHz Band / )
)
)
) / WT Docket 02-55
ORDER
Adopted: June 27, 2014 Released: June 27, 2014
By the Chief, Public Safety and Homeland Security Bureau:
I.Introduction
1.By this Order,pursuanttodelegatedauthority,we(1)provisionallypostponethe800 MHzrebanding financial reconciliation “true-up”date fromJuly 1, 2014toDecember 31, 2014,and(2) requirethe800MHzTransitionAdministrator(TA)tofileareportbyNovember15,2014,withits recommendation on whether the true-updateshouldoccuronDecember 31, 2014,orbefurtherpostponed.
II.Background
2.TheCommissionestablished thetrue-up process in the800 MHz Report and Order to assessthetotalcreditablerebandingcostsincurredbySprintNextelCorporation(Sprint)forboth800 MHzrebanding and relocation of Broadcast Auxiliary Service (BAS)licensees in the 1.9 GHzband, and to compare these costs to the value of the 1.9 GHz spectrum that the Commission awarded to Sprint.[1] If thetrue-up showsthat the value of the 1.9 GHz spectrum exceeds Sprint’s combined 800 MHz and BAS relocationcosts,Sprintmustpaythedifferenceinan“anti-windfall” payment to the U.S. Treasury.[2]
3.The 800MHzReportandOrder originally required Sprint to complete 800MHz rebanding in non-border areas within thirty-sixmonths[3]andprovidedthatthatthetrue-up would occur withinsixmonthsthereafter.[4] Thethirty-six month rebandingperiodexpiredonJune26,2008,atwhich time neither 800 MHzrebanding nor BASrelocation wascomplete.[5] Accordingly, on June 25, 2008, Sprintrequestedthatthetrue-up – which was scheduled to occur on December 26, 2008– be postponed indefinitely until both 800 MHzrebanding and BASrelocation were complete.[6] Noting that both rebandingprojectshadbeensubjecttounforeseencomplexityanddelay,Sprintcontendedthat conducting the true-up as scheduled would be premature and would fail to account for significant rebanding coststhat Sprinthadyet toincur.[7]
4.In its December 2008 Fourth Memorandum Opinion and Order,theCommissiongranted Sprint’srequestinpartandextendedthetrue-up date from December 26, 2008 until July 1, 2009.[8] The Commissionfoundthatcircumstanceshadchangedsincetheestablishmentoftheinitialtrue-up schedule, and that neither 800 MHz rebanding nor BAS relocation had progressed sufficiently to justify conducting thetrue-up as originally scheduled. However, the Commission declined to postpone the true-up indefinitely, noting that Sprintcould incur sufficient creditable costsbefore the completion ofrebandingtoallowthetrue-up to proceed.[9] TheCommissionthereforeextendedthetrue-up date until July 1, 2009, anddirected theTAtofileareportbyMay1,2009,withitsrecommendation onwhetherrebandinghad progressedsufficientlythatthetrue-up should be conducted on July 1, 2009, or whether it should befurther postponed.[10] The Commission also delegatedauthority tothePublic Safety and HomelandSecurityBureau (Bureau) to consider and grant further extensions of the true-up deadline.[11]
5.The Bureau has previously exercised the delegated authority granted by the Commission toextend thetrue-up deadline, which the Bureau has done in six-month increments, based on periodic reportsandrecommendationsfromtheTA.[12] ThelatestsuchextensionexpiresonJuly 1, 2014.[13] TheTAhasfileditsmostrecenttrue-up report recommending that the true-up date befurtherextended fromJuly 1, 2014until December 31, 2014.[14]
6.We note that the Commission has pending before it a Petition for Declaratory Ruling filed bySprint in which Sprintstatesthatthetrue-up can be conducted nowbased on cost and payment informationalreadyavailabletotheTAandtheCommission.[15] TheTA,however,“believesthatthetrue- up remains premature at this time and that additional rebanding expenditures are required to provide a meaningfulreport of Sprint Nextel’s total rebanding costsforboththe800MHzrebandingandforthe relocationofBASlicensees.”[16]
III.discussion
7.Although BASrelocation isnowcomplete andsubstantial progresshasbeenmade in 800 MHz rebanding, a significant number of 800 MHz licensees have yet to complete the process, and rebanding inthe US-Mexico border region has only recently begun.[17] The Commission has also made no determinationwithrespecttoSprint’sdeclaratoryrulingrequesttoconductthetrue-up based on currently available information.InlightofthesefactorsandtheTA’srecommendation,weconcludethat conductingatrue-upofSprint’srebanding expenditures asofJuly 1, 2014wouldbe premature. Accordingly,weprovisionallyextendthetrue-update, asrecommended bythe TA,untilDecember 31, 2014, anddirecttheTAtofileareportbyNovember15,2014,withitsrecommendation onwhetherthetrue-upshouldbeconductedasofDecember 31, 2014,orbefurtherpostponed.Wegrantthisextensionona provisionalbasisbecauseitissubjecttoanyactiontheCommissionmaytakeonSprint’sdeclaratory rulingpetition.Thus,itdoesnotprecludetheCommissionsettinganalternative true-up date based on the recordinthatproceeding.Wealsoemphasizethataswithpriortrue-up extensions, our action with respecttothetrue-updateisintendedtohavenoimpact onanyotheraspectofthetimetable for800MHz rebanding.
IV.ordering clauseS
8.Accordingly, pursuant to Section 4(i) of the Communications Act of 1934, as amended, 47 U.S.C. § 154(i), and Sections 0.191, 0.392, and 90.677 of the Commission’s rules, 47 C.F.R. §§ 0.191, 0.392, 90.677, IT IS ORDERED that, unless sooner directed by the Commission, the true-uporderedin theFourth Memorandum Opinion and Order SHALLBECALCULATEDbasedonrebanding expenditures by Sprint Nextel Corporation as of December 31, 2014.
9.ITISFURTHERORDEREDthat, unless the true-up is further extended, the 800 MHz Transition Administrator SHALL FILE its final true-up report by June 30, 2015.
10.ITIS FURTHER ORDERED thatthe Transition Administrator SHALL FILE in this docket, by November15,2014, its recommendation on any further extension of the true-up date.
FEDERAL COMMUNICATIONS COMMISSION
David G. Simpson, Rear Admiral, USN (Ret.)
Chief, Public Safety and Homeland Security Bureau
1
[1]ImprovingPublicSafetyCommunicationsinthe800MHzBand,WTDocketNo.02-55,ReportandOrder,Fifth ReportandOrder,FourthMemorandumOpinionandOrder,andOrder,19FCCRcd14969,15124¶330(2004) (800MHzReportandOrder).
[2]Id.
[3]Id.at 14977¶ 11.
[4]Id.at 15124¶ 330.
[5]ImprovingPublicSafetyCommunicationsinthe800MHzBand,WTDocketNo.02-55,FourthMemorandumOpinionandOrder,23FCCRcd18512,18514¶9 (2008)(FourthMemorandumOpinionandOrder).
[6]Id.at18512¶1.
[7]Id.at 18513-14¶ 6.
[8]Id.at 18512¶1.
[9]Id.at 18515¶ 11.
[10]Id.at ¶ 12.
[11]Id.
[12]SeeImprovingPublicSafetyCommunicationsinthe800MHzBand,WTDocketNo.02-55,Order,24FCCRcd8410(PSHSB2009);Order,24FCCRcd14642(PSHSB2009);Order,25FCCRcd8217(PSHSB2010);Order25FCCRcd17794(PSHSB2010);Order,26FCCRcd8572(PSHSB2011);Order,26FCCRcd.16506(PSHSB2011);Order,27FCCRcd7308(PSHSB2012);Order,28FCCRcd9122(PSHSB2013); Order,29FCCRcd1(PSHSB2013).
[13]SeeImprovingPublicSafetyCommunicationsinthe800MHzBand,WTDocketNo.02-55,Order,29FCCRcd1(PSHSB2013).
[14]SeeRecommendationtoFurtherPostpone800MHzRebandingFinancialTrue-up,WTDocket02-55,filedbythe800MHzTransitionAdministrator,LLC,at 1-3(December 19, 2013) (DeferralLetter).
[15]Petitionfora DeclaratoryRulingfiledbySprintNextelCorporationat iii(Jan.22,2013).OnJanuary25,2013, theBureausoughtcommentonSprint’sdeclaratoryrulingpetition.SeePublicSafetyandHomelandSecurity BureauSeeksCommentonPetitionforDeclaratoryRulingbySprintNextelCorporationConcerning800MHz Rebanding“Anti-Windfall”PaymentandLetterofCreditMinimumAmount,WTDocket02-55,PublicNotice,28FCCRcd371(PSHSB2013).
[16] Deferral Letter at 2.
[17]TheTA’smostrecentlyfiledquarterlyreportindicatesthatexcludingtheUS-Mexicoborderregion,96.1percentof800MHzlicenseessubjecttorebandinghavecompletedphysicalretuningand74.8percenthavecompletedall rebanding-relatedtransactions. See800MHzTransitionAdministrator,LLCQuarterlyProgressReportforthe QuarterEndedDecember 31, 2013,WTDocket02-55,filedMarch 20,2014,at 1. OnApril1, 2013,theBureauissueda ReportandOrderannouncingcommencementofa 30-monthperiodforrebandingintheUS-Mexicoborderregion. ImprovingPublicSafetyCommunicationsinthe800MHzBand;New800MHzBandPlanforU.S.-MexicoSharingZone,WTDocketNo.02-55,FifthReportandOrder,28FCCRcd4085(PSHSB2013).