Policy Lessons from PCS: A Hohfeldian Analysis of Licensed vs. Unlicensed

1. Policy Lessons from PCS:A Hohfeldian Analysis of Licensed vs. Unlicensed Kenneth R. Carter Counsel for Business and Economics Office of Strategic Planning and Policy Analysis Federal Communications Commission International Telecommunications Society September 6, 2004

2. Disclaimer The analyses and conclusions expressed herein are mine alone and do not necessarily reflect the view of other members of the Office of Strategic Planning and Policy Analysis, other Commission Staff, or any Commissioner. Data was taken from publicly available sources, and we do not endorse any company or technology presented. Kenneth R. Carter

3. Brief Taxonomy of Licenses • Station or Geographic • Operator • Licensed by Rule • Unlicensed Kenneth R. Carter

4. Licensed PCS • Created in 1993 • “Licensed” Has Interference Protection • First Implementation of Flexible Rules: Licensee May Choose Service/Technology • Equipment Must Meet Basic Technical Standards • Equipment Authorization is Required • Assigned by Auctions Kenneth R. Carter

5. Unlicensed PCS • Low Power Operation without a User License • No Vested Right to Continued Operation • May Not Cause Harmful Interference • Must Accept Any Interference • Must Cease Operation if Notified by FCC that Device is Causing Harmful Interference • Must Receive Equipment Authorization before Marketing/Importation • LBT Spectrum Etiquette Kenneth R. Carter

6. Primary Primary Fixed Microwave Service Fixed Microwave Service User User Secondary Secondary Broadband PCS Broadband PCS Broadband PCS Broadband PCS U U - - PCS PCS Users Users 1850 MHz 1850 MHz 1910 1910 1990 MHz 1990 MHz 1930 1930 Nextel 140 MHz band at 1850 to 1990 MHz • Fixed Microwave Services (Part 101) • Broadband PCS (Part 24) • Unlicensed PCS (Part 15D) Kenneth R. Carter

7. Relocation • Broadband PCS • Voluntary Negotiation Period • Mandatory Negotiation Period • Comparable Facilities • Secondary Status • Coordinators: PCIA & ITA • Unlicensed PCS • Coordinator: UTAM • Cleared area • $20 per handset fee Kenneth R. Carter

8. Introduction to Hohfeld • No consistent use of language • Leads to muddled legal reasoning: “This invites confusion, it makes bad logic almost inevitable, it makes clear statement of clear thought difficult, it makes clear thought itself improbable.” - Karl Llewellyn,The Bramble Bush at 85 (1960). • Clear and precise articulation of legal relationships Kenneth R. Carter

9. Hohfeld’s Jural Concepts • Right is one’s affirmative claim against another; • Duty is the obligation to perform or abstain from an action; • Privilege is the freedom from the right of another; • No-Right is the inability to assert a claim against another • Power is one’s affirmative control over a given legal relation as against another; • Liability is the obligation to the affirmative control of another over a given legal relation; • Immunity is the freedom from the affirmative control of another over a given legal relation; • Disability is the lack of control over a given legal relation as against another Kenneth R. Carter

10. Jural Correlatives Kenneth R. Carter

11. Jural Opposites Kenneth R. Carter

12. “Spectral” Persons • Spectrum Regulator (FCC) • Primary Licensee • License Assignee (Secondary Markets) • Receivers Not Under the Control of the Licensee (e.g., Broadcast Radio & Television) • Secondary Users • Adjacent Licensee (in Frequency, Time, or Geography) • License-by-Rule Users (Part 95) • Authorized-by-Rule Users (Part 15) • Errant Users (e.g., pirates) • The Unborn Spectrum User (Persons who in the future may wish to use the spectrum) Kenneth R. Carter

13. Band Participants • Spectrum Regulator FCC • Primary Licensee Fixed Microwave Service • Secondary Users Broadband PCS • Authorized-by-Rule Users U-PCS • Errant Users Pirates • The Unborn Spectrum User Kenneth R. Carter

14. Band-Specific Application Kenneth R. Carter

15. Band-Specific Application Kenneth R. Carter

16. Band-Specific Application Kenneth R. Carter

17. Band-Specific Application Kenneth R. Carter

18. Policy Lessons • Market: Service Provider or Equipment • Flexibility is preferable to etiquette • Licensed handled relocation better • U-PCS operation requires authorization which is in fact a Station License! Kenneth R. Carter

19. One View of the Cathedral One View of the Bazaar http://www.ibiblio.org/wm/paint/auth/monet/rouen/monet.rouen-cathedral.jpg http://www.persian-ventures.com/images/bazaar.jpg Kenneth R. Carter

20. Summary • Hohfeldian analysis promising tool for spectrum policy review • Focuses analysis on remedying interference externality • Increased policy tools – narrowly tailored • Conflict resolution • Transition focus from C&C to use & user • Spectrum use looks like other “every day” activities Kenneth R. Carter

21. Thank you! Kenneth R. Carter Office of Strategic Planning and Policy Analysis Federal Communications Commission Kenneth.Carter@fcc.gov +1 202 418-1706

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23. Band-Specific Application Kenneth R. Carter

24. Band-Specific Application Kenneth R. Carter