Telecom Business Alert -- Vol. VIII Issue 27

Date: Jul 05, 2011

David Reader on "Mental Accounting and Internal Use Spectrum Valuation"

Traditional metrics of spectrum valuation can be helpful when the spectrum is or will be used as part of a commercial network, such as the Verizon Wireless broadband network. But for companies seeking critical spectrum for internal use, traditional metrics for valuation may be inadequate, largely irrelevant and/or far more challenging than the "MHz per POP" metric relied upon by wireless services providers, spectrum speculators and the FCC. A recent article by Keller and Heckman partner David Reader explains certain "mental accounting" principles that may help rationalize the valuation process for companies looking to acquire spectrum solely to meet internal requirements. For the article, click here. For more information on spectrum valuation or acquisitions, contact David (reader@khlaw.com; 202.434.4187).

FCC Seeks Comment on Sprint Petition to Use CDMA in 800 MHz band

On June 30, 2011, the FCC released a Public Notice seeking Comment on a Petition for Declaratory Ruling filed by Sprint Nextel seeking confirmation that the Commission's rules permit Sprint to deploy technologies using bandwidths greater than 25 kHz in the 817–824/862–869 MHz Enhanced Specialized Mobile Radio Service ("ESMR") bands. The Public Notice states that Sprint plans to incorporate its 800 MHz ESMR spectrum into Sprint's existing CDMA network, which would entail use of 1.25 MHz bandwidth CDMA equipment. Sprint's Petition is a further sign that the company is intent on following through with announced plans to replace its iDEN network with CDMA. Comments are due by August 1, 2011 and Reply Comments are due by August 16, 2011.

FCC Forum Discusses Environmental Compliance for Telecommunications Providers

On June 21st, the FCC held a day-long session focusing on environmental compliance prior to the construction of communications facilities. The forum, attended by representatives from the FCC, USDA, FEMA, and the Advisory Council on Historic Preservation, discussed compliance with Section 106 of the National Historical Preservation Act and the National Environmental Policy Act. The FCC has recently made the entire presentation available online; to watch the video, click here. For more information on compliance with Section 106 and NEPA regulations, contact Keller and Heckman attorney Wes Wright (wright@khlaw.com; 202.434.4296).

LightSquared Submits Final Report; Comment Deadlines Set

On Thursday, LightSquared submitted the final report of the technical working group co-chaired by LightSquared and the United States Global Positioning System Industry Council. As expected, the report noted significant interference issues related to LightSquared operations in the upper portion of the L-Band. As noted in last week's Telecom Alert, LightSquared plans to address these interference concerns by reducing power and operating only in the lower part of the band, although it remains unclear whether the FCC will grant LightSquared final approval to operate. A Public Notice released Thursday set comment deadlines on the report and on LightSquared's operating plan. Comments are due July 30, 2011; reply comments are due August 15, 2011.

House Energy and Commerce Committee Plans Series of Privacy Hearings

Last week, the House Energy and Commerce Committee announced a series of hearings on consumer privacy and data collection. The first hearing in the series, to be led by Reps. Mary Bono Mack (R – Calif.) and Greg Walden (R – Ore.) on July 14, will feature testimony from the FCC and FTC on existing privacy laws. In future hearings, the committee plans to address issues such as consumer awareness and the anonymization of personal data. The hearings, in addition to the large amount of proposed privacy legislation in recent months, signal Congress' increased attention to data privacy and security issues in response to the high number of major data breaches in 2011.

K&H Video Minute: Tracy Marshall and Sheila Millar on The Privacy Playbook Webinar Series

In this week's Video Minute, Keller and Heckman partners Tracy Marshall and Sheila Millar discuss their six-part webinar series, The Privacy Playbook: A Practical Guide for Businesses. For this week's Video Minute, click here. The next webinar in the series, Practical Tips for Avoiding Privacy Enforcement and Lawsuits, will be held on July 14 from 11 to 12:30 EST. The final webinar, Towards Privacy By Design: Smart Grid and Other Technologies, will be held on July 28. For more information or to register for upcoming webinars, click here.

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