WASHINGTON-No matter how many times Federal Communications Commission economist Greg Rosston declared that spectrum auctions were not about money, it was clear to member associations of the Land Mobile Communications Council that money is all the commission is about when it comes to private-radio issues.
Many members are facing the possibility of either being priced out of spectrum expansion due to sky-high auction prices, or they are mulling over the finer points of relocation. For some, becoming customers of commercial land mobile service providers will be their only option to continue operating.
“Auctions have been a great success, but it wasn’t for the money,” Rosston said. “Our goal was to have a quick process of getting licenses out. We created new businesses that eventually will pay taxes, plus they create jobs.” On the other hand, Rudy Baca, legal adviser to Commissioner James Quello, said, “We have to be honest. The Congressional Budget Office and congressional oversight committees do take the money seriously.”
Baca added that there is an increasing tendency in Congress to tell the FCC what to do with spectrum, when it should be auctioned and how it can be used.
Countering that somewhat was the FCC’s chief engineer Tom Stanley, who said, “Since the Omnibus Budget Reconciliation Act of 1993 created auctions, the repercussions included putting a value on spectrum. The value of non-commercial spectrum still hasn’t been settled.”
The three panelists put forth several ideas how revenues for private-radio spectrum could be earmarked for the Treasury in lieu of auctions, including graduated fees and the possibility of a disinterested party buying auctioned channels and then reselling them to private-radio operators.
Rosston also pointed out that most of the incumbent users of 800 MHz spectrum scheduled for auction later this year probably will not have to move, and that wide-area licenses could be issued as gapfillers.
Some members expressed concern regarding an FCC proposal to take back UHF and VHF frequencies from the broadcast community that currently are being used by public safety entities in a shared environment. A commission docket dealing with such sharing has been on hold since 1987. Rosston thinks that some of this spectrum could be repacked by the commission to accommodate private-radio needs, but that “this will be Congress’ call.”
Because the commission is wrestling at the bureau level with the future of private radio, industry leaders have been asked to submit comments to the Wireless Telecommunications Bureau by April 15 that detail where the commission-and the industry-should be headed in an environment that clearly favors the CMRS community. The comments will be crafted into a white paper to be released this summer.
“You have different regulatory philosophies in each commissioner,” Baca concluded. “Five politicians make up this commission, and you end up with political consequences. I would implore you not to give up on the commission. Keep talking to us. Remember, not every decision the commission makes is wrong, and they can be tweaked.”
