The Federal Communications Commission (FCC) has taken a major step forward in harnessing the power of hybrid satellite-terrestrial networks to expand connectivity across the United States. In a Report and Order and Further Notice of Proposed Rulemaking adopted on March 14, 2024, the Commission established a first-of-its-kind regulatory framework to enable collaborations between satellite operators and terrestrial wireless providers to offer ubiquitous connectivity directly to consumer handsets using spectrum previously allocated only to terrestrial service.
This new “supplemental coverage from space” (SCS) framework is a crucial component of the FCC’s vision for a “single network future” in which satellite and terrestrial networks work seamlessly together to provide coverage that neither network can achieve on its own. The FCC anticipates that SCS will enable consumers in areas not covered by terrestrial networks to stay connected using their existing devices via satellite-based communications.
Serving the Public Interest
The FCC’s actions to facilitate the deployment of SCS are aimed at serving several important public interest goals for the nation:
- Expanding the reach of communications services, particularly emergency services, so that connectivity and assistance are available in more remote places.
- Spurring advancements in cutting-edge, space-based technologies that will position the United States as a global leader in this arena.
- Continuing efforts to promote the innovative and efficient use of the nation’s spectrum resources in ways that foster creative collaborations among users.
In crafting this new framework, the FCC sought to balance the desire to accelerate innovative SCS operations with the need to retain service quality of terrestrial networks, protect spectrum usage rights, and minimize the risk of harmful interference, both domestically and internationally. The framework represents an initial step to encourage the development of SCS while minimizing risks. In the future, as the marketplace for SCS develops, the FCC plans to build on this framework to enable deployment of SCS in additional bands and scenarios.
Modifying Spectrum Allocations
To allow satellite communications on spectrum previously allocated only to terrestrial services, the FCC modified the United States Table of Frequency Allocations to authorize bi-directional, secondary mobile-satellite service (MSS) operations in certain spectrum bands that have no primary, non-flexible-use legacy incumbents, federal or non-federal.
For these bands, SCS is authorized only where one or more terrestrial licensees – together holding all licenses on the relevant channel throughout a defined “geographically independent area” – lease access to their spectrum rights to a participating satellite operator, whose part 25 license reflects these frequencies and the geographic area in which they will offer SCS.
The specific bands initially made available for SCS under this framework include:
- 600 MHz band (617-652 MHz and 663-698 MHz)
- Lower 700 MHz band (698-746 MHz)
- AWS-1 band (1710-1780 MHz and 2110-2180 MHz)
- AWS-3 band (1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz)
- AWS-4 band (2000-2020 MHz and 2180-2200 MHz)
- H Block (1915-1920 MHz and 1995-2000 MHz)
- WCS band (2305-2315 MHz and 2350-2360 MHz)
- BRS/EBS band (2496-2690 MHz)
- 700 MHz public safety broadband spectrum licensed to FirstNet (758-769 MHz and 788-799 MHz)
The FCC declined to include certain other bands proposed by commenters at this time, such as the 1.4 GHz band and 2.5 GHz band, due to technical complexities and the presence of incumbent users. However, the Commission will continue to monitor developments and consider expanding the bands available for SCS in the future.
Licensing Framework
Under the framework adopted, an NGSO satellite operator with an existing part 25 license may apply to modify its authorization to include SCS where it meets the FCC’s entry criteria. New satellite entrants seeking to provide SCS may also apply. The FCC will apply its existing part 25 rules to review SCS applications to ensure operators are technically and legally qualified.
A key component of the entry criteria is that the satellite operator must have a spectrum leasing agreement in place with one or more terrestrial licensees that together hold all co-channel licenses throughout a geographically independent area. The leasing arrangement must be approved by the FCC before the satellite operator is granted authority to deploy and operate its SCS system.
Terrestrial providers’ subscriber devices communicating with SCS satellites will be authorized on a “license by rule” basis, rather than requiring individual device licenses. This approach aims to minimize regulatory burdens while ensuring compliance with FCC rules and international obligations.
Spectrum Leasing Policies
The Report and Order amends the FCC’s part 1 spectrum leasing rules to permit terrestrial licensees to lease access rights to satellite operators for the purpose of providing SCS. Two leasing options are available:
- A single terrestrial licensee holding all co-channel licenses in a geographic area may enter into a leasing arrangement with one or more satellite operators.
- Multiple co-channel licensees in a geographic area may jointly enter into leasing arrangements with a satellite operator, as long as together they hold all licenses throughout the area.
In both cases, the leasing arrangement must cover the entire geographic area in order to meet the entry criteria. The parties must include certain certifications and information about the nature of the leasing arrangement when filing the required FCC Form 608.
The FCC believes this spectrum leasing framework will promote administrative efficiency, encourage secondary market transactions, and provide flexibility to enable rapid provision of SCS using terrestrial spectrum. At the same time, the leasing rules include safeguards to protect terrestrial licensees’ rights and prevent harmful interference.
FirstNet Exception
As an alternative to the leasing framework, the FCC will allow FirstNet, the nationwide public safety broadband licensee, to enable SCS using its licensed 700 MHz spectrum through a contractual agreement rather than a leasing arrangement.
Many commenters supported including FirstNet’s Band 14 spectrum in the SCS framework, arguing it would advance vital public safety objectives by enhancing first responders’ communications capabilities in emergencies, especially in rural areas where terrestrial coverage is lacking. The FCC agreed the compelling public safety benefits justified adopting a tailored approach for FirstNet.
Technical and Operational Issues
The Report and Order addresses various technical and operational issues associated with SCS. It applies certain technical requirements from the FCC’s part 27 terrestrial wireless rules to SCS operations, while exempting SCS providers from other part 27 rules that would not be relevant.
To protect incumbent federal users, the order requires coordination with federal incumbents in some shared bands. It also mandates that SCS operations protect radio astronomy observations in certain quiet zones. The FCC directs its Office of Engineering and Technology to update equipment authorization procedures as needed for SCS.
Recognizing that SCS has the potential to bring life-saving connectivity to remote areas, the FCC applies interim 911 call routing requirements to ensure emergency communications are supported. The Commission seeks comment in the Further Notice on additional steps to enable automatic location-based routing of 911 calls over SCS in the future.
International Considerations
The FCC acknowledges that international coordination will be required for SCS systems. The Report and Order streamlines the international coordination process by deeming an SCS applicant’s coordination obligations met if the system’s technical parameters fall within the relevant parameters published in the ITU’s Master International Frequency Register.
For non-U.S.-licensed satellite operators seeking to provide SCS in the United States, the FCC will follow its existing DISCO II framework to determine whether allowing the foreign operator to access the U.S. market serves the public interest. The Commission sees no reason to restrict SCS to U.S.-licensed operators, finding that allowing foreign entrants will increase competition and encourage innovation.
Ongoing Developments
The Report and Order represents an initial regulatory framework to enable SCS in the United States. However, the FCC recognizes the nascent and evolving nature of the SCS marketplace. The Commission therefore takes a hybrid approach of adopting baseline rules while continuing to consider individual waivers for SCS implementations that do not align with the framework.
As the SCS ecosystem develops, the FCC plans to build upon the foundation established in this proceeding to expand access to additional bands and scenarios. The Commission will continue to monitor technological developments, including 5G standards work by 3GPP and other bodies, and may incorporate relevant specifications into its rules in the future.
The Further Notice seeks comment on additional issues, including measures to improve public safety communications over SCS and protect radio astronomy facilities. The FCC also notes that the 2023 World Radiocommunication Conference added a study item for potentially using internationally harmonized spectrum for SCS. The Commission plans to actively participate in these international studies to help establish a global framework.
Conclusion
With this Report and Order, the FCC takes a major step towards enabling satellite operators and terrestrial wireless providers to collaborate on offering ubiquitous connectivity across the United States. By establishing a regulatory framework for supplemental coverage from space, the Commission aims to expand access to communications services, drive technological innovation, and promote efficient spectrum use.
While challenges remain in fusing satellite and terrestrial networks, the FCC believes a transparent and consistent rules-based approach will provide clarity to the industry and position the United States as a leader in the emerging SCS marketplace. The Commission hopes its policies will serve as a model for other countries grappling with similar issues in the “single network future.”
As SCS solutions begin to deploy under this initial framework, the FCC pledges to remain proactively engaged, monitoring developments, considering expansions and refinements to its rules, and working with stakeholders to fulfill the promise of seamless satellite-terrestrial connectivity for all Americans. The innovations unleashed by the Commission’s actions hold the potential to transform the communications landscape and yield tremendous benefits to the public.
