WHITE PAPER
Addressing
Part 90 Spectrum
Scarcity
January 2009
© 2009 Spectrum Bridge, Inc.
WHITE PAPER
Addressing Part 90 Spectrum Scarcity
Situation Overview
Part 90 Spectrum scarcity is becoming an issue in many market areas. Both quantitative
analysis and anecdotal evidence from the marketplace indicate that Part 90 coordinations
are diminishing in both quantity and exclusivity. While frequency coordinators are doing the
best they can with the diminishing number of available channels in these markets, in many
cases, customers’ business needs are not being adequately addressed. The industry must be
willing to embrace creative solutions to meet these spectrum demands.
One specific and proven strategy is the repurposing of Part 22 & 24 spectrum to support
traditional Part 90 applications. This approach provides a new revenue opportunity to holders of Part 22 and Part 24 spectrum, while at the same time, provides cost-effective alternatives to those struggling with Part 90 congestion.
To best understand the issue and its potential solutions, it is important to review recent history of the market, the dilemma frequency coordinators face, and some of the underlying
reasons for Part 90 spectrum scarcity.
Scarcity of Part 90 Spectrum:
Spectrum scarcity exists in the Part 90 (VHF/UHF/800/900) public safety, business/
industrial, and other radio services. Currently, if a qualified entity makes a request, the frequency coordinator attempts to find the best suitable and available spectrum that can be allocated. This system, as well as the highly dedicated and professional frequency coordinators, has served the public for many years.
However, this system has enabled speculators to opportunistically acquire numerous Part 90
site specific licenses for only the cost of an ‘application fee’. Given past auction prices of
spectrum offerings from the FCC, it is clear that these fees are not proportional to the intrinsic market value of this spectrum. This trend, whereby the speculator pays a nominal application fee to acquire the spectrum and subsequently holds it in hope that a need emerges
from other potential users, allows the spectrum holder to seek financial gains on an asset
(spectrum) originally intended to serve the public’s interest.
In recent years, coordinations for many types of Part 90 spectrum have dropped significantly, (see graphs below) exacerbating a condition of perceived spectrum scarcity 1. One
reason appears to be the result of an unintended consequence of the FCC’s solution to spectrum scarcity itself – the creation of secondary markets for spectrum trading. The FCC now
allows many types of Part 90 spectrum to be leased, subleased and reassigned by licensees,
in secondary or ‘after’ markets for monetary consideration. Unfortunately, the secondary
market currently lacks an open and reliable way of assessing spectrum value and is generally
void of transparent and publicly available market pricing data. This makes trading spectrum
(a national asset) at fair market value difficult at best.
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Addressing Part 90 Spectrum Scarcity
Federal government, in conjunction with international standards bodies and treaties allocates
spectrum to various government agencies including the DoD, FAA and Federal Communications Commission (FCC). The FCC awards a spectrum license to a commercial entity either
by fiat or through a competitive auction process where interested parties bid against each
other. The winning bidder is then known as a “Commission Licensee”. The license, in the
form of a lease from the FCC, will dictate specific terms of its use. These terms include the
geographic coverage area, transmission characteristics and, and a set of service rules.
Service rules, described in the Code of Federal Regulations (CFR) Title 47, dictate the operating characteristics and applications that can be used under the terms of the license. These
rules are typically known by a part number, e.g., Part 15, Part 27 or Part 90. Equipment
manufacturers design and build equipment to meet these rules and obtain certification from
the FCC. The License holder is free to buy any equipment that has been certified to operate
under the applicable rules for their license.
The data shown at left illustrates the present condition. Grant dates for over 1.9 million licenses, across 90 different radio services dating back to 1953 were examined.
Of special interest were site specific license
grants (excluding market based licenses
granted via auction), in 6 different categories, over the last 25 years. Spectrum was
grouped into Land Mobile Commercial (SMR/
LMS/trunked radio), Land Mobile Private
(business/industrial/transportation), Land
Mobile - Public Safety, Coast & Ground,
Paging and Microwave radio services. (The
latter three graphs are shown in Appendix
A.)
These graphs illustrate that frequency coordinations peaked in the early part of this
decade, before declining rapidly in the last
few years. There appeared to be a "land
rush" for Part 90 spectrum, with the first
wave occurring in the most valuable spectrum (Land Mobile Commercial), followed by
spectrum with increasing use restrictions,
and hence, lower commercial value.
Spectrum Coordinations for Select Part 90 Service Codes
Source: FCC Universal Licensing System (ULS) database.
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Addressing Part 90 Spectrum Scarcity
Overall, new frequency coordinations (new license grants) in the Land Mobile Commercial,
Private and Public Safety services have decreased by 82% in the last 5 years, creating significant obstacles for expansion of critical services and creation of new applications. It has
also been reported that the exclusivity of frequency coordinations in recent years has declined, which could be a result of the pressures of satisfying new demand in markets where
Part 90 spectrum, for all practical purposes, had been exhausted. In these cases, frequency
coordinators do the best they can with the limited spectrum available for them to work with.
It should be noted that the rules for allocating site specific spectrum vary significantly by
radio service2. For example, FCC rules sometimes permit exclusive use allocations (if frequencies are available).
Exclusive use allocations generally require that the interference contour of new stations do
not overlap the service contours of existing stations. Today, an exclusive use license to
cover any sizable area is difficult, at best, to acquire in a metropolitan area. Alternatively,
spectrum can be allocated on a non-exclusive basis as shown below.
Part 90, T-Band spectrum site specific license contours operating
on the same T-band channel in San Francisco
The example above illustrates the contention that often results from this approach. Nonexclusive use allocations may yield significant overlap of service contours between different
site specific operators using the same channel, yielding an undesirable amount of overlap
and interference. As shown above, the interference contours (the red outlines) not only
overlap each other, but also significantly overlap the service area contours (showing green).
In fact, in this example above, the service area contours themselves overlap each other to a
large degree.
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Addressing Part 90 Spectrum Scarcity
Another method of allocating spectrum is to ‘wedge’ new licenses into the existing landscape, by significantly limiting transmit power and antenna height, but ends up creating licenses that typically fall short of addressing real needs, or providing for economically feasible service areas.
Based on statements made by customers coming to Spectrum Bridge to meet their Part 90
spectrum needs, it appears that a growing number of them are not able to obtain adequate
spectrum in the larger and more congested markets. In order to offset the effects of this
problem, the FCC instituted new narrow band operation requirements, but this may not be
enough to insure adequate supply for new applications3.
It appears that entities seeking Part 90 spectrum have two obvious choices:
1. Apply for a site specific license with the appropriate frequency coordinator. Depending
on the availability of spectrum in that specific market or location, this may, or may not,
result in adequate spectrum for the application envisioned
2. Purchase or lease Part 90 spectrum on the secondary market. Adequate spectrum may
be available, although prices have been rising in markets where desirable Part 90
channels are scarce.
However, the best solution may not be the most obvious. When you consider overall availability, recent market prices, demonstrated FCC flexibility and proximity to Part 90 frequencies - the use of Part 22 paging or part 24 Narrowband PCS spectrum may provide the most
workable and cost-effective solution for solving Part 90 spectrum scarcity.
Thinking Outside the Box:
Part 22 & 24 Spectrum for Part 90 Applications
In recent years, the FCC has auctioned over $80B of market based spectrum intended for
use in a wide variety of applications. Some of this spectrum includes market-based licenses
for frequencies in the highly desirable UHF/VHF/800/900 bands. It is these market-based
licenses that may hold the key to meeting demand for spectrum need to operate traditional
Part 90 applications. This market-based spectrum is abundant, but has been labeled with
the somewhat antiquated or cryptic terminology of “Paging” and “Narrowband PCS”.
Market-based spectrum allows users to construct base stations and deploy mobile users,
with no regulatory limits on the number of users allowed, throughout a market area. In addition, no requirements exist to register individual site installations (as with site specific licenses), simplifying administration and fostering flexibility. One drawback of the marketbased approach is that site specific incumbents may have grandfathered rights to certain areas within a market-based area, but this can be readily quantified.
Part 22 spectrum falls under the category of Paging, a generic term used to describe the
process of sending/receiving messages. The majority of Part 22 Paging was allocated in 30
kHz paired channels (VHF) and 25 kHz paired channels (UHF). A single license is equivalent
to 2 pairs of narrowband 12.5 kHz voice channels, and is compatible with a wide variety of
existing Part 90-based systems and communications equipment.
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Addressing Part 90 Spectrum Scarcity
Part 22 Paging & Part 24 Narrowband PCS Spectrum is Interleaved with Part 90 Spectrum
The Narrowband PCS band is another example of spectrum that is plentiful and available for
many applications, including traditional Part 90 voice, dispatch and remote monitoring. This
spectrum was allocated by the FCC at 901-902, 930-931 and 940-941 MHz. The FCC’s original band plan for narrowband PCS spectrum facilitated allocation in blocks of varying bandwidths
(12.5 kHz to 150 kHz) - paired and unpaired. Despite these variations, a total of 3 MHz of this
spectrum exists, is available via secondary markets and has zero incumbents – making it ideal for
fast and interference-free deployment in just about every market.
In summary, these (and other) alternative spectrum sources are suitable for Part 90 applications
and can be used for a wide variety of services including:
•
•
•
•
•
•
•
•
FB8-like control channels for trunked radio systems
expansion of SMR systems
telemetry
voice & dispatch
low and medium rate data applications
commercial carrier operations
location services
critical public safety applications.
Although the industry has readily accepted the FCC’s secondary markets initiatives, there still
appears to be hesitation among the Part 90 user community to utilize spectrum allocated for the
same application, but outside of the Part 90 domain. To overcome this, Part 90 users must be
willing to embrace the new flexibility the FCC is exhibiting under these rules. The FCC has already ruled that spectrum from 86 different radio services may be leased, subleased or reassigned in secondary markets4. In many cases, the FCC is allowing this spectrum to be used
among different radio services, within existing rules or with a simple waiver5. The FCC has also
shown a propensity to approve waiver requests that serve the public interest6. Finally, current
FCC policies afford licensees greater flexibility to decide what services to offer and what technologies to deploy on spectrum7.
© 2009, Spectrum Bridge, Inc.
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Addressing Part 90 Spectrum Scarcity
Case Studies:
The Virginia Commonwealth State Police, New Jersey Office of Public Safety Communications and Wisconsin DOT are existing examples of non-traditional users of Part 22 spectrum8. In addition, there are plans and applications in process by the City of Bayonne, New
Jersey (to add Part 22 frequencies to its public safety radio system)9, the State of Wyoming
(to construct a statewide communication system using Part 22 paging spectrum)10 and Marin
County, California (to operate a public safety radio system using Part 22 point-to-multi-point
frequencies)11. These examples illustrate how non-part 90 spectrum can be used to effectively address Part 90 scarcity issues. As these examples show, forward thinking users are
leveraging the utility and availability of Part 22 (and 24) spectrum to enable projects that
might have otherwise gone unrealized.
Conclusion:
Part 90 spectrum has become more difficult to obtain due to increasing scarcity of unencumbered spectrum. As a result, the number of Part 90 spectrum coordinations is declining,
with reports that the granted coordinations are providing less exclusivity than those in the
past. This is not the fault of frequency coordinators in any way; they are putting forth a heroic effort to do the best can with dwindling supplies of unencumbered Part 90 spectrum in
many markets.
Though the FCC’s secondary market initiatives may have contributed to a land grab that is
exacerbating the problem, it also supplies a way out of this dilemma, when creatively applied.
If Part 90 users are willing to be creative and leverage the FCC’s willingness to allow traditional Part 90 applications and services to operate in Part 22 & 24 spectrum, spectrum scarcity in many markets can be cost-effectively eliminated. It is conceivable that if the entire
cache of underutilized Part 22 and 24 spectrum can be efficiently repurposed, the current
condition of Part 90 spectrum scarcity can be alleviated. This solution will require that network operators take full advantage of the FCC’s secondary markets initiative, as well has
the Commission’s demonstrated willingness to creatively allow the use spectrum to address
the public good.
With cooperation between industry, the FCC, and frequency coordinators – along with the
advent of an open online spectrum marketplace, spectrum scarcity can be cost-effectively
eliminated using only spectrum currently allocated. The FCC’s secondary markets initiative
has paved the way to put unused Part 22 and 24 spectrum back to work, but the rest is up
to industry.
While the wireless industry can benefit from embracing the idea of repurposing spectrum,
frequency coordinators must look beyond their existing cache of Part 90 spectrum to fulfill
requests. Finally, network operators themselves must look beyond the terminology of the
past when seeking new ways to use old spectrum.
© 2009, Spectrum Bridge, Inc.
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Addressing Part 90 Spectrum Scarcity
About Spectrum Bridge:
Spectrum Bridge Inc. (SBI) created SpecEx, the world’s first online marketplace for spectrum. The
company’s solution allows the entire wireless ecosystem of spectrum holders, equipment providers,
and system integrators to benefit from serving the growing demand for reliable business and missioncritical connectivity from wireless communications system users. The marketplace has enabled the
wireless industry to more effectively utilize spectrum by readily identifying available licenses for sale
or lease. The Open and transparent listing process promotes fair value and pricing while a suite of
online tools enables buyers and sellers to disaggregate and partition licenses as needed. Currently,
SpecEx contains the single largest inventory of Part 22 and 24 spectrum available on the market today. Established in March 2007 by wireless networking industry veterans from Motorola, Lucent, and
Nortel, Spectrum Bridge is a privately held company headquartered in Lake Mary, Florida. For more
information, contact us at 866-598-7426, or visit www.spectrumbridge.com.
References:
1
2
3
4
5
6
H. Zheng and L. Cao, “Decentralized Spectrum Management through User Coordination," In Cognitive
Wireless Communications Networks, Vijay Bhargava and Ekram Hossain, ed., Springer, 2007.
47 CFR § 90.173, §90.175
FCC’s THIRD MEMORANDUM OPINION AND ORDER, THIRD FURTHER NOTICE OF PROPOSED RULE MAKING
AND ORDER: Promotion of Spectrum Efficient Technologies on Certain Part 90 Frequencies
47 CFR § 1.9005
47 CFR § 1.925
Amendment of Part 90 of the Commission’s Rules To Provide for Flexible Use of the 896-901 MHz and
935-940 MHz Band Allotted to the Business and Industrial Land Transportation Pool
7
Annual Report and Analysis of Competitive Market Conditions With Respect to Commercial Mobile Services.
http://wireless.fcc.gov/uls
9
FCC Public Notice DA 08-804
10
FCC Public Notice DA 08-802
11
FCC Public Notice DA 08-803
8
Appendix A – Coordinations in various Part 90 service codes
© 2009, Spectrum Bridge, Inc.
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