EBS Spectrum

Where is this 500Mhz of spectrum going to come from?
What spectrum will be auctioned?
What criteria is required to bid?
Does Clearwire qualify for funding?

Current State of the EBS Spectrum (that I am aware of, please add)

The 2.5GHz Educational Broadband Service (EBS) Spectrum

It was no coincidence that President Obama introduced WIII at Northern Michigan University. NMU is the only University in the Country to utilize the Middle Band Channels of the EBS. NMU is one of thousands of educational entities throughout the Country to have the rights to the EBS. Here is a map of current EBS licenses...

Each one of these licenses represents a 35 mile radius of available mobile, nomadic or fixed wireless broadband access. These licenses are assigned to community anchor tenants (mostly educational entities) that include our state universities and university systems, public community and technical colleges, private universities and colleges, public elementary and secondary school districts, private schools (including Catholic school systems in a number of large metropolitan areas), public television and radio stations, hospitals and hospital associations, and private, non-profit educational entities.

Most of these EBS license holders have leased their spectrum out to Clearwire Corporation (Nasdaq - CLWR) in return for cash. The only beneficiaries of these lease deals are the EBS license holders that were originally assigned this spectrum back in the 60's and 70's.

Clearwire is using the EBS spectrum to build out commercial "WiMAX" services and sub-leasing this asset to Sprint (EVO 4G), Comcast and Time Warner in select markets throughout the United States. They have the rights to ninety percent of the EBS thanks to a ruling by the past FCC, on Election Day 2008, allowing Clearwire to "transfer control of certain licenses, authorizations, and de facto transfer spectrum leases held by Sprint, Clearwire and their subsidiaries to a new wireless broadband company also called Clearwire Corporation (“CLEAR”)".

The latest on Clearwire is that they are going to get away from retailing their WiMAX and only offer wholesale using this spectrum. As of February 11, 2011 Clearwire has service available in these markets...

Chances are that Sprint, Comcast and Time Warner will continue to wholesale from Clearwire and that this spectrum will (should) migrate from WiMAX to 4G LTE.

What is most significant here is that Clearwire has no interest in using the middle band segment of the EBS. They are more interested in the upper and lower bands of the EBS spectrum. And in the language of their lease they state:

• Clearwire will allow the EBS License Holder, at its sole cost and expense, to make use of the middle band channel(s) for educational operations so long as use does not interfere with their commercial operations; and
• EBS License Holders may request the use of all or substantially all of the mid-band channels at their own expense.

This represents 42MHz of nationwide 4G LTE ready spectrum that is available for noncommercial educational, governmental, administrative or research purposes. Below is a diagram of how the EBS could be restructured showing the Northern Michigan University EBS network operating in the Middle Band of the EBS spectrum...

Would Obama, Congress and/or the FCC be willing to restructure rules and policy surrounding the use of the EBS band in this manner? Is this part of the spectrum that will be auctioned off? Does this make sense?

FCC Mandated EBS "Substantial Service" Deadline of May 1, 2011

This is an important issue considering the nearness of this date. This substantive service deadline will allow the FCC to start pulling or revoking licenses. If an EBS license is not in use by this drop dead date then the FCC can take that license back. This will mostly effect licenses in rural markets or possibly in markets where Clearwire has leased but not launched services.

Is this how Obama plans on acquring spectrum and then auctioning it off? What about markets where Clearwire has leased but not launched? Will those licenses be pulled and auctioned off? Is this part of the 500MHz plan?

A good example of a market where Clearwire has leased but not launched is Palm Beach and Broward Counties, Florida. Florida Atlantic University has the rights to these EBS licenses and leased to Clearwire in April of 2008. They got $12 million up front and have been receiving over $470K per month since they signed off. This market covers 3 million people and 1.4 million households. Yet there is no service. Where has this money gone? Should FAU use some of this money to launch service using the middle band to meet substantial service safe harbor?

The map (overlay) below shows EBS licenses that are in jeopardy of being revoked. Where there are shades of green, they are protected and will continue to receive lease payments. Where there is no green shading, those licenses could be revoked.

Is this what the FCC had in mind when they allowed Clearwire to lease and monopolize this spectrum?

There is 194MHz of EBS 4G LTE ready spectrum available in markets where Clearwire hasn't launched or leased. Will this spectrum be taken back and auctioned?

Now would be a good time for Congress to intervene and take a good look at all the issues surrounding proper and intended use of this EBS spectrum.