Open Range Wins Extension on Finding Alternative Spectrum

Open Range Communications got more time from the FCC to find spectrum other than the S-band spectrum it has been leasing from Globalstar, the agency said on reconsideration Thursday. The International and Wireless bureaus and Office of Engineering and Technology extended what was originally a 60-day special temporary authority to Jan. 31, 2011, during which the company must find alternative spectrum for its service. Open Range has leased Globalstar’s terrestrial spectrum since 2008. The FCC recently denied a waiver request from Globalstar that would have let Open Range continue its service in that spectrum (CD Sept 16 p6).

The order also left open the possibility of further action before the deadline if “appropriate.” The language may let the FCC delay the end of operations in the spectrum as needed, said a wireless industry executive. Open Range will also be required to provide the FCC monthly reports on its efforts in finding different spectrum and transitioning customers, beginning in October.

The decision likely provides some relief for the Rural Utilities Service, which had voiced concern about the proceeding and asked the FCC to consider the $266 million loan RUS gave Open Range to build its network. Days before the commission declined Globalstar’s waiver request, RUS Administrator Jonathan Adelstein asked the commission to give Open Range full use of the ATC spectrum throughout the term of the RUS loan (CD Sept 20 p1). “We are encouraged by this move and will continue to support our borrower while they seek a resolution to spectrum use requirements,” an RUS spokesman said. “RUS believes there is a long-term solution for Open Range with the cooperation of the FCC.”

The decision “gives us a great opportunity to go forward in a positive way,” Open Range CEO Bill Beans said in an interview. “We are pleased to see how supportive the FCC and USDA have been of what Open Range does” and the order “demonstrates” the importance of the company’s operations. Open Range provides service to 97 markets in 12 states and will be available in 200 markets by the end of the year, he said. The company has been looking for alternative spectrum for some time and as a wireless provider it is “always looking for spectrum capacity,” Beans said. “We feel good about prospects to find frequency for Open Range for the long term.”