Federal Communications Commission Washington, D.C. 20554 January 13, 2014 Ms. Laura Stefani Mr. Joseph A. Godles Goldberg, Godles, Wiener & Wright LLP 1229 19th Street, N.W. Washington, D.C. 20036 DA 15-42 Re: Request by Itron, Inc. for Waivers of the Commission's Rules Dear Ms. Stefani and Mr. Godles: In this letter, we deny Itron, Inc.’s (Itron’s) request for waivers of certain of the Commission's rules 1 to operate a half-duplex, non-paging system using its licensees in the 931 MHz band. 2 As explained below, Itron has not shown under sections 1.3 or 1.925 of the Commission’s rules 3 that waiver is warranted in this instance. I. BACKGROUND In 2010, the Wireless Telecommunications Bureau (Bureau) auctioned 9,603 geographic-area paging licenses, with 1,851 of those licenses being in the upper paging bands (929-931 MHz). 4 In announcing Auction 87, the Bureau explained that pre-existing paging incumbent licenses existed in the bands, and these “[i]ncumbent (non-geographic) paging licensees operating under their existing authorizations are entitled to full protection from co-channel interference.” 5 Itron was the winning bidder 1 In its waiver request, Itron seeks waiver of 47 C.F.R. §§ 22.355, 22.515, 22.531, and 22.561. In the Public Notice the Commission issued in connection with Itron’s waiver request, we stated that “[i]t appears to us that section 22.561 does not apply to Itron’s requested waiver, since that rule section does not apply to 931 MHz band paging operations.” Wireless Telecommunications Bureau Seeks Comment on Itron, Inc. Request for Waivers of Part 22 Rules to Facilitate Provision of Non-Paging Operations Over 931 MHz Licenses, Public Notice, WT Docket No. 13- 195, 28 FCC Rcd 11829, 11829 (2013) (Itron Public Notice). We further stated that “it does appear that Itron might require a waiver of section 22.531 in order to conduct its half-duplex operations, and we therefore will treat Itron’s filings as seeking a waiver of section 22.531 (instead of section 22.561) to the extent necessary.” Id. We continue to treat Itron’s waiver request as seeking a waiver of section 22.531 rather than section 22.561 where applicable. 2 Itron, Inc. Request for Waiver, WT Docket No. 13-195, filed Dec. 17, 2012 (Itron Request). The Itron Request is attached to the Universal Licensing System (ULS) record for each of those licenses. See http://wireless.fcc.gov/uls/index.htm?job=home. Each license’s Call Sign is listed in Attachment 1. 3 47 C.F.R. §§ 1.925(b)(3), 1.3. 4 See Auction of Lower & Upper Paging Bands Licenses Scheduled for May 25, 2010, Public Notice, 25 FCC Rcd 6156 (2009) (Auction 87 Announcement PN). 5 Auction 87 Announcement PN at 6157 ¶ 6 (citing Revision of Part 22 and Part 90 of the Commission’s Rules to Facilitate Future Development of Paging Systems, Implementation of Section 309(j) of the Communications Act – Competitive Bidding, WT Docket No. 96-18, Memorandum Opinion and Order on Reconsideration and Third Report and Order, 14 FCC Rcd 10030, 10059-60 ¶¶ 42-44 (1999); Revision of Part 22 and Part 90 of the Commission’s Rules to Facilitate Future Development of Paging Systems, Implementation of Section 309(j) of the Communications Act – Competitive Bidding, WT Docket No. 96-18, Second Report and Order and Further Notice of Proposed Rulemaking, 12 FCC Rcd 2732, 2764 ¶¶ 57-58 (1997); 47 C.F.R. § 22.503(i)). 2in Auction 87 for 155 Major Economic Areas paging licenses in the 931 MHz band, 6 and the Bureau granted the licenses on November 3, 2010. 7 On December 17, 2012, pursuant to sections 1.3 and 1.925 of the Commission’s rules, Itron filed the Itron Request so that it may use its paging licenses to support and improve its automatic meter reading (AMR) and advanced metering infrastructure (AMI) systems. 8 The Itron Request includes a two-page technical statement in support of its claim that its system poses no interference risk to other paging licensees. 9 In its Request, Itron seeks three sets of waivers. 10 “First, to the extent necessary, Itron requests a waiver of Sections 22.[531] and 22.515 of the rules permitting it to engage in half-duplex transmissions so that there can be communications both to and from Itron's meter modules.” 11 Section 22.515 provides that, for all paging services, “[m]obile stations may communicate only with and through base stations. Base stations may communicate only with mobile stations and receivers on land or surface vessels.” 12 Section 22.531 provides that “[t]he following channels [specifically including 931 MHz frequencies] are allocated for assignment to base transmitters that provide paging service . . . .” 13 Itron argues that a waiver of these two rules, if needed, would serve the public interest by enabling utilities to conduct time and frequency synchronization of their systems, improve control of the overall system, conduct on- demand reads, and communicate with hard-to-reach customer premises end points, and otherwise make it possible for Itron to provide smart grid services in support of utilities. 14 “Second, Itron requests a waiver, to the extent necessary, of Section 22.531 of the Commission's rules so it may provide non-paging data services.” 15 As stated above, section 22.531 limits the assignment of channels in the 931 MHz band to base transmitters that provide paging service, as opposed to the type of non-paging data service Itron proposes. Itron states that grant of a waiver of section 22.531 here would be in keeping with the Commission’s policies favoring flexible use of spectrum, including the Part 22 paging spectrum, and where the spectrum might otherwise lie fallow. 16 “Finally, Itron seeks a waiver of Section 22.355, to permit fixed and mobile stations operating with an ERP of less than 2 watts to be subject to a frequency tolerance of 5 ppm rather than 1.5 ppm.” 17 6 See Auction of Lower & Upper Paging Bands Licenses Closes Winning Bidders Announced for Auction 87, Public Notice, 25 FCC Rcd 18164 (2010). 7 See Wireless Telecommunications Bureau Grants Lower & Upper Paging Bands Licenses, Public Notice, 25 FCC Rcd 15324 (2010). 8 Itron Request at 1, 2. Specifically, Itron seeks “to provide service, on a non-common carrier basis, to support fixed and mobile functions, including smart grid functions, such as system monitoring, system control, and smart metering.” Id. at 2. 9 See Technical Statement of Dan Seely in Support of ltron's Request for Waiver of Section 22.355 of the Commission's Rules to Permit Operation of Low Power Stations at a Frequency Tolerance of 5 PPM (Itron Technical Statement). 10 See Itron Request at 3. 11 Id. 12 47 C.F.R. § 22.515. 13 47 C.F.R. § 22.531. 14 See Itron Request at 5-6. 15 Id. at 3. 16 See id. at 7-8. 17 Id. at 3. 3Section 22.355 of the Commission’s rules 18 requires that, as relevant to Itron’s proposed 931 MHz band operations, the carrier frequency of each transmitter must satisfy a frequency tolerance limit of 1.5 ppm. Itron seeks a waiver of section 22.355 so that its customer premises end points and readers employing frequencies in the 931 MHz band would be subject to a frequency tolerance limit of 5 ppm. 19 Itron asserts that its need for this waiver arises from certain system design constraints and the requirements of its utility customers. 20 Itron notes that for a large percentage of time, Itron’s customer premises end points and readers will satisfy the 1.5 ppm standard. 21 Itron contends that certain technical factors would mitigate any potential adverse impact from grant of the requested waiver, including the narrow bandwidth used by the customer premises end points and readers and their low power levels (less than two watts Effective Radiated Power). 22 Despite its stated request for waivers, however, Itron also asserts that waiver of sections 22.515 and 22.531 of the Commission’s rules should not be necessary to permit its half-duplex operations. 23 Itron argues that its proposed non-paging data “operations arguably are consistent with these limitations,” because, “at any point in time, each transmission path on Itron’s system will be inactive or will be used to send messages in only a single direction either [(a)] from a fixed or mobile reader to a fixed customer premises end point or repeater or [(b)] from a fixed customer premises end point or repeater to a fixed or mobile reader.” 24 Itron also asserts that “[n]either section 22.531 nor the Commission’s Table of Frequency Allocations expressly prohibits the assignment of [931 MHz] channels to stations that do not provide paging.” 25 Itron therefore contends that because data services in the 931 MHz band is not prohibited by rule, a waiver of section 22.531 is not necessary for it to provide non-paging data services. 26 On August 8, 2013, the Bureau issued a Public Notice seeking comment on the Itron Request. 27 Two parties submitted comments in response to the Itron Request, USA Mobility, Inc. (USA Mobility) 28 and Space Data Corporation (Space Data). 29 USA Mobility opposes the Itron Request, stating that “the proposed waivers would present a potentially serious risk of interference with USA Mobility’s paging systems, which are vital to hospitals, emergency responders, and other public safety officials.” 30 USA Mobility also argues that Itron should obtain two-way paging licenses to conduct its service “rather than 18 47 C.F.R. § 22.355. 19 See Itron Request at 9. 20 See id. 21 See id. at 10. 22 See id. The Itron Technical Statement specifically supports Itron’s request for waiver of section 22.355. 23 See id. at 5. 24 Id. Itron states that its network includes customer premises end points located on utility meters and readers that are used to collect information from the customer premises end points and relay information to them. See id. at 3-4. 25 Id. at 7. 26 See id. 27 Itron Public Notice. 28 Comments of USA Mobility, Inc., WT Docket No. 13-195, filed Sept. 9, 2013 (USA Mobility Comments). 29 Comments of Space Data Corporation, WT Docket No. 13-195, filed Sept. 24, 2013. Space Data took no position on the merits of the Itron Request. See id. at 1. Rather, it took the “opportunity to discuss the importance of smart grid and other critical infrastructure initiatives, and the availability of narrowband personal communications service (“NPCS”) spectrum that can help advance those initiatives.” Id. That issue is outside the scope of this letter and therefore is not addressed herein. 30 USA Mobility Comments at 1. 4seeking a fundamental repurposing of the one-way spectrum it acquired,” and that a rulemaking proceeding would be more appropriate here given that these waiver requests would result in “fundamental changes to the technical rules governing one-way paging frequencies . . . .” 31 Itron filed comments in reply to USA Mobility 32 reiterating its belief that “[t]he Commission’s rules do not even require one-way communications on Itron’s frequencies,” and that “[e]ven if there were a one-way requirement, Itron’s half-duplex operations will be one-way, [because a]t any given time, each of Itron’s transmission paths will be inactive or will be used to send messages in only a single direction.” 33 Itron also states that “USA Mobility’s technical arguments do not withstand scrutiny,” and that its system “has less interference potential than a traditional paging system operating with maximum facilities.” 34 In addition, Itron argues that the USA Mobility Comments are procedurally flawed because USA Mobility provides no engineering statement in support of its technical arguments, and because “USA Mobility has not satisfied the requirement for an affidavit or declaration from a person with personal knowledge of the facts asserted.” 35 II. DISCUSSION As a threshold matter, we disagree with Itron that it does not need a waiver of section 22.531 of the Commission’s rules. 36 Section 22.531 provides that systems operating in the 931MHz band only may transmit through base transmitters, whereas Itron proposes operations by which it would utilize non-base transmitters. 37 As Itron’s proposed operations do not fit within the architecture put in place by section 22.531, we find that Itron would, indeed, require a waiver of section 22.531 in order to operate its half- duplex non-paging system. We now turn to the merits of whether Itron has met the waiver standards of sections 1.925 or 1.3 of the Commission’s rules. 38 Pursuant to section 1.925, waiver may be granted if the petitioner establishes that: (1) the underlying purpose of the rule(s) would not be served or would be frustrated by application to the instant case, and the grant of the waiver would be in the public interest; or (2) in light of unique or unusual factual circumstances, application of the rule(s) would be inequitable, unduly burdensome or contrary to the public interest, or the applicant has no reasonable alternative. 39 In addition, the Commission may waive any provision of its rules if good cause is shown. 40 We find that Itron has not met its burden under either rule. Taken together, the rules that govern the operation of 931 MHz systems provide protection to co- channel site-based incumbents, co-channel geographic licensees, and adjacent-channel licensees from inference caused by a 931 MHz licensee. This interference-protection paradigm presumes that transmissions will be solely through base transmitters. As we described above, however, Itron’s proposed 31 Id. at 1-2. 32 Reply of Itron, Inc., WT Docket No. 13-195, filed Sept. 24, 2013 (Itron Reply). 33 Id. at 2-3. 34 Id. at 3,11. 35 Id. at 2. 36 See Itron Request at 5; Itron Reply at 6-8. 37 Section 22.99 defines a base transmitter as “[a] stationary transmitter that provides radio telecommunications service to mobile and/or fixed receivers, including those associated with mobile stations.” 38 47 C.F.R. § 1.925; 47 C.F.R. § 1.3 39 47 C.F.R. § 1.925(b)(3). 40 47 C.F.R. § 1.3. 5operations appear to use a different communications architecture than the one contemplated by our rules (i.e., one involving mobiles and other non-base transmitters). Itron has not described how it envisions the interference-protection paradigm our rules have set in place for 931 MHz licenses (which allows only for base station transmissions) would apply in this context. For example, it is unclear how Itron proposes to provide co-channel protection to other licensees from its mobile transmissions. And while the Itron Technical Statement demonstrates protection to adjacent channel licensees, we find that Itron has not sufficiently shown how it would protect co-channel site-based incumbents or co-channel geographic area licensees from harmful interference (as required by section 22.503 41 ). Itron therefore has not shown that a waiver here would be consistent with the underlying purpose of the rules it seeks to waive, namely interference protection to other licensees, and so has not met the burden of the first prong of section 1.925(b)(3). In addition, Itron’s public interest arguments do not overcome its failure to demonstrate how it would provide adequate protection from interference to other, protected paging licensees given its novel architecture. Itron makes no arguments that any unique or unusual factual circumstances exist such that application of the rules would be inequitable, unduly burdensome, or contrary to the public interest, nor has it argued that it has no reasonable alternative; it therefore also fails to meet the second prong of 1.925(b)(3). Finally, in light of its failure to show that it will not cause interference to co-channel licensees, we find that Itron has failed to establish “good cause” for a waiver pursuant to section 1.3. As such, we deny Itron’s request for waiver of sections 22.515, 22.531, and 22.355. Accordingly, IT IS ORDERED that, pursuant to Section 4(i) and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i), 303(r), and sections 0.331, 1.3, and 1.925 of the Commission’s rules, 47 C.F.R. §§ 0.331, 1.3, 1.925, the Itron Request is DENIED. Sincerely, Roger S. Noel Chief, Mobility Division Wireless Telecommunications Bureau Federal Communications Commission 41 47 C.F.R. § 22.503. 6Attachment 1 List of Itron 931 MHz Licenses Call Sign Market Code Channel Block 1. WQMX694 MEA001 AL 2. WQMX695 MEA001 AM 3. WQMX696 MEA001 AN 4. WQMX697 MEA002 AP 5. WQMX698 MEA002 AQ 6. WQMX699 MEA002 BK 7. WQMX700 MEA003 AC 8. WQMX701 MEA003 AF 9. WQMX702 MEA003 AG 10. WQMX703 MEA004 AP 11. WQMX704 MEA004 AZ 12. WQMX705 MEA004 BK 13. WQMX706 MEA005 AJ 14. WQMX707 MEA005 AM 15. WQMX708 MEA005 AN 16. WQMX709 MEA005 BK 17. WQMX710 MEA006 AP 18. WQMX711 MEA006 AQ 19. WQMX712 MEA006 BF 20. WQMX713 MEA007 AC 21. WQMX714 MEA007 AG 22. WQMX715 MEA007 AM 23. WQMX716 MEA008 AW 24. WQMX717 MEA008 AY 25. WQMX718 MEA008 AZ 26. WQMX719 MEA009 AA 27. WQMX720 MEA009 AB 28. WQMX721 MEA009 AC 29. WQMX722 MEA010 AA 30. WQMX723 MEA010 AB 31. WQMX724 MEA010 AC 32. WQMX725 MEA011 AG 33. WQMX726 MEA011 AM 34. WQMX727 MEA011 BD 35. WQMX728 MEA012 AC 36. WQMX729 MEA012 AJ 37. WQMX730 MEA012 AK 38. WQMX731 MEA012 AL 39. WQMX732 MEA013 AB 40. WQMX733 MEA013 AC 41. WQMX734 MEA013 AG 42. WQMX735 MEA014 AB 743. WQMX736 MEA014 AC 44. WQMX737 MEA014 AG 45. WQMX738 MEA015 AF 46. WQMX739 MEA015 AG 47. WQMX740 MEA015 AH 48. WQMX741 MEA015 AI 49. WQMX742 MEA016 AB 50. WQMX743 MEA016 AY 51. WQMX744 MEA016 AZ 52. WQMX745 MEA016 BK 53. WQMX746 MEA017 AA 54. WQMX747 MEA017 AB 55. WQMX748 MEA017 AC 56. WQMX749 MEA018 AG 57. WQMX750 MEA018 BI 58. WQMX751 MEA018 BK 59. WQMX752 MEA019 AP 60. WQMX753 MEA019 BB 61. WQMX754 MEA019 BC 62. WQMX755 MEA020 AF 63. WQMX756 MEA020 AG 64. WQMX757 MEA020 BJ 65. WQMX758 MEA020 BK 66. WQMX759 MEA021 AA 67. WQMX760 MEA021 AB 68. WQMX761 MEA021 AO 69. WQMX762 MEA022 AA 70. WQMX763 MEA022 AB 71. WQMX764 MEA022 AC 72. WQMX765 MEA023 AA 73. WQMX766 MEA023 AB 74. WQMX767 MEA023 AC 75. WQMX768 MEA024 BH 76. WQMX769 MEA024 BI 77. WQMX770 MEA024 BJ 78. WQMX771 MEA025 AA 79. WQMX772 MEA025 AB 80. WQMX773 MEA025 AC 81. WQMX774 MEA026 AA 82. WQMX775 MEA026 AB 83. WQMX776 MEA026 AG 84. WQMX777 MEA027 AA 85. WQMX778 MEA027 AG 86. WQMX779 MEA027 AJ 87. WQMX780 MEA027 AK 88. WQMX781 MEA028 AA 89. WQMX782 MEA028 AB 890. WQMX783 MEA028 AC 91. WQMX784 MEA028 AG 92. WQMX785 MEA029 AA 93. WQMX786 MEA029 AB 94. WQMX787 MEA029 AF 95. WQMX788 MEA030 AA 96. WQMX789 MEA030 AB 97. WQMX790 MEA030 AK 98. WQMX791 MEA031 AA 99. WQMX792 MEA031 AE 100. WQMX793 MEA031 AJ 101. WQMX794 MEA031 AK 102. WQMX795 MEA032 AE 103. WQMX796 MEA032 AG 104. WQMX797 MEA032 AW 105. WQMX798 MEA033 AF 106. WQMX799 MEA033 AZ 107. WQMX800 MEA034 AA 108. WQMX801 MEA034 AB 109. WQMX802 MEA034 AF 110. WQMX803 MEA035 BE 111. WQMX804 MEA035 BI 112. WQMX805 MEA035 BK 113. WQMX806 MEA036 AA 114. WQMX807 MEA036 AB 115. WQMX808 MEA036 AC 116. WQMX809 MEA037 BC 117. WQMX810 MEA037 BD 118. WQMX811 MEA037 BE 119. WQMX812 MEA038 AD 120. WQMX813 MEA038 AE 121. WQMX814 MEA038 AW 122. WQMX815 MEA039 AD 123. WQMX816 MEA039 AI 124. WQMX817 MEA040 AL 125. WQMX818 MEA040 AY 126. WQMX819 MEA040 BC 127. WQMX820 MEA040 BF 128. WQMX821 MEA041 AJ 129. WQMX822 MEA041 AK 130. WQMX823 MEA041 AL 131. WQMX824 MEA041 BK 132. WQMX825 MEA042 AJ 133. WQMX826 MEA042 AM 134. WQMX827 MEA042 BE 135. WQMX828 MEA043 AI 136. WQMX829 MEA043 AJ 9137. WQMX830 MEA043 AN 138. WQMX831 MEA043 AW 139. WQMX832 MEA044 AD 140. WQMX833 MEA044 AO 141. WQMX834 MEA044 AW 142. WQMX835 MEA045 AV 143. WQMX836 MEA045 AW 144. WQMX837 MEA045 AX 145. WQMX838 MEA046 AT 146. WQMX839 MEA046 AU 147. WQMX840 MEA046 AV 148. WQMX841 MEA047 AA 149. WQMX842 MEA047 AB 150. WQMX843 MEA047 AC 151. WQMX844 MEA048 AF 152. WQMX845 MEA048 AG 153. WQMX846 MEA048 AH 154. WQMX847 MEA050 AA 155. WQMX848 MEA050 AB