WASHINGTON-Senate Commerce Committee Chairman Larry Pressler (R-S.D.) last week called for sweeping spectrum reforms, but dodged the issue of whether broadcasters should pay for television channels.
The reforms, which appear to form the foundation of a national spectrum policy bill, would privatize 20 percent to 25 percent of federal government spectrum; consolidate all spectrum management functions (including oversight of federal government spectrum currently vested with the National Telecommunications and Information Administration) under the Federal Communications Commission; encourage spectrum flexibility; rely on self-managed regulation; and grant blocks of public safety spectrum to all states.
“Those radio frequency management and use reforms hold significant promise and would lead to a more effective, efficient and responsive use of this valuable national resource,” said Pressler. “All would reduce regulatory burdens while fostering important public policies, including advances in technology and innovation, greater choice and more customer options.”
Pressler promised Robert Dole (R-Kan.), Senate majority leader and the likely Republican presidential candidate, that he would pursue broad spectrum legislation in exchange for Dole agreeing to release his hold on the telecommunications bill last month.
Dole held the telecommunications bill hostage for weeks because it did not require TV broadcast auctions. It has been estimated that between $11 billion and $70 billion could be raised from the sale of TV broadcast spectrum.
The wireless telecommunications industry, which will have spent nearly $20 billion on spectrum licenses once C-block broadband personal communications services auction receipts are tallied, believes TV broadcasters also should pay to convert from analog to digital technology.
The wireless industry also is fearful broadcasters may use a portion of the extra six-megahertz channel during a 15-year digital transition to offer competing wireless services, such as paging. Another concern is that unless broadcasters ante up for spectrum, the federal government will resort to across-the-board spectrum fees to offset any auction revenue shortfall.
The broadcasting industry insists auctions will kill free, over-the-air television. It appears the message has begun to resonate on Capitol Hill. At the moment, despite Dole’s high-profile criticism of the issue, there does not appear to be support for rushing into broadcast auctions.
At a Senate Budget Committee hearing last week, Chairman Pete Domenici (R-N.M.), Phil Gramm (R-Texas) and Kent Conrad (D-N.D.) said they were leery about Dole’s proposal to auction digital TV channels and the Clinton administration plan to raise $17 billion by selling analog TV channels returned by broadcasters who convert to digital technology.
