Definition

What is Cost-Sharing?
Cost-sharing is a concept established by the FCC in 1996 for the 1.9 GHz PCS auction which addressed a "Free Rider" issue associated with previous auctions. A Free Rider is a new entrant who benefits from the relocation of an incumbent without contributing to the relocation costs. The FCC established cost-sharing to ensure all who benefit from relocations share in the associated costs. Specifically, cost-sharing is an attempt to make certain all later-filing AWS and MSS licensees who may benefit from a previously relocated incumbent share in the costs of that relocation.

Background of Cost-sharing in the 2.1 GHz Spectrum Band
On April 21, 2006, the FCC established procedures in its Ninth Report and Order for spectrum clearing efforts of incumbent systems in the Advanced Wireless Services ("AWS") spectrum band. This Report and Order addressed the relocation of Broadband Radio Service ("BRS") and Fixed Microwave Service ("FS") incumbents from the 2.1 GHz band and the related cost-sharing of such relocations.

Advanced wireless systems could provide, for example, a wide range of voice, data, and broadband services over a variety of mobile and fixed networks. In establishing these relocation procedures, the FCC facilitates the introduction of AWS in this band, while also ensuring the continuation of BRS and FS services.

Following the Ninth Report and Order, the FCC requested proposals to act as a Clearinghouse administrator to perform cost sharing administrative, monitoring and notification tasks. In response to this Public Notice, CTIA - The Wireless Association contracted with Comsearch, a CommScope company, and submitted a proposal to the FCC for consideration in the role of Clearinghouse administrator on July 17, 2006. On October 4, 2006 the FCC designated CTIA as a cost-sharing Clearinghouse administrator.

CTIA Spectrum Clearinghouse, LLC
Created as a cooperative venture in 2006 by CTIA and Comsearch working under the authorized designation from the Federal Communications Commission, the CTIA Spectrum Clearinghouse, LLC ("CTIA Clearinghouse") ensures objective and equitable cost-sharing of relocations in the 2110 - 2200 MHz spectrum band. The CTIA Clearinghouse provides the database management and technical analysis to all affected licensees, whether incumbent users of the spectrum or newly licensed entities, in the relocation and cost-sharing process.

The CTIA Clearinghouse is tasked with the identification and notification of cost-sharing obligations in the Advanced Wireless Services and Mobile Satellite Service spectrum band. Just prior to FCC Auction 66 (AWS-1), there were some 5700 fixed microwave links and approximately 205 BRS systems co-channel to the newly licensed spectrum. Once the licenses were awarded, the licensees who secured spectrum now had the obligation to clear the spectrum of any interference potential with the incumbent users prior to any deployment under the guidance of the FCC's transition rules. This spectrum-clearing effort created a dilemma in which the licensee paying for and coordinating the relocation of incumbent systems was also removing an obstacle to market for direct competitors in the same geographical area. Thus, the concept of the AWS Cost-sharing Clearinghouse was employed by the FCC to distribute the financial burden of incumbent relocation fairly and promote a more rapid deployment of Advanced Wireless Services.