TELECOMMUNICATIONS LAW UPDATES
Last month, the FCC released its "spectrum cap" decision, which largely preserved the status quo for the broadband commercial mobile radio services (CMRS) industry. The FCC rejected, for now, carriers’ arguments that elimination of the cap is critical to the competitive needs of the wireless market. But this decision only sets the stage for what may be an even more difficult replay of spectrum cap issues as early as next year, in the broader context of the upcoming spectrum allocation for Third Generation ("3-G") wireless services.
At present, the spectrum cap limits to 45 MHz the amount of spectrum that a single entity can own through attributable interests in broadband Personal Communications Service (PCS), cellular, and Specialized Mobile Radio (SMR) licensees within the same geographic area. In choosing to maintain the cap, the FCC stated that, despite the substantial increase in competition in CMRS markets since the cap first was imposed, the
