The Federal Communications Commission may be close to deciding whether it will allow mobile satellite services operators in the 2 GHz band to offer terrestrial service in conjunction with their satellite offerings.

More than a year ago, Motient and New ICO asked the FCC to allow them to incorporate an ancillary terrestrial component (ATC), which allows providers to reuse their frequencies and offer cellular-like terrestrial service along with mobile satellite service to underserved rural areas. Management at Motient and New ICO believe terrestrial services are the only way the satellite industry can survive.

The Cellular Telecommunications & Internet Association, in anticipation of a ruling on the matter, warned the FCC today that granting terrestrial rights to MSS players could result in “endless legal proceedings.” The wireless industry has long argued that the FCC gave the MSS industry free spectrum because it was going to provide satellite, not terrestrial, services that potentially could compete with mobile operators.

"Any spectrum made available for commercial terrestrial services must be auctioned pursuant to Section 309(j) of the Communications Act,” CTIA said in a letter to the FCC. “A decision by the commission to give MSS licensees the ability to provide terrestrial services would not only violate the statute, it would be inconsistent with the commission's overarching goal of ensuring that spectrum is put to its highest and best use. The result would be a morass of legal proceedings, and a guarantee that this spectrum would either lie fallow or be inefficiently used for years to come."