WASHINGTON-Not only was the future of spectrum policy on the minds of Industrial Telecommunications Association members meeting here last week, it has been on the front burner of several Capitol Hill staffers even during this time of possible political transition.
Spectrum auctions have become a critical part of spectrum management in the minds of many legislators who are looking for quick cash to fund social programs, and it was Congress that gave the Federal Communications Commission auction authority in the first place. “We’re the victims of our own success,” said Cathy Reid, majority counsel for the House Commerce Committee. “Every time we want money, we auction off another asset. Spectrum management is serious business, and the average congressman knows nothing about it.”
Although reps. Thomas Bliley (R-Va.) and John Dingell (D-Mich.) earlier this fall tried to sideline the use of auctions in place of tough budgeting, their efforts were thwarted.
Both presidential candidates have forwarded programs funded by spectrum auctions-particularly those involving broadcast frequencies, an industry segment Congress has not yet allowed to be touched. “It’s easier to shake the auction tree than to make budget-cutting decisions. It’s just a cash cow,” said David Leach, minority staff member of the House Commerce Committee. “No one here understands spectrum-management policy. To them, it’s just free money.”
In defense, Reid did say many congressmen have been educated about the impact of auctions, and they don’t just plug in large numbers anymore and wait for the math to justify the figures. She added “the light bulb has gone on” with the Congressional Budget Office, which must check all financials involved with a proposed bill, although Leach explained that CBO still scores any auction bill, no matter what the spectrum or use involved, by personal communications services standards.
“They don’t have any idea about any other service,” he said. “They plug in a number and the math doesn’t matter. The budget guys say `never mind, our books balance.”‘
The FCC has been reminded that revenues should not be the driving force behind auctions, Reid said, and Congress will have to step up to the plate to be even clearer about that issue, even to the point of crafting another spectrum-reform plan. If the commission does not heed congressional warnings, Reid said future FCC appropriations could be tied to performance and cooperation, and Leach said letters could be used to “maximize embarrassment.”
In light of all this, how will private-radio users ever get more spectrum without having to face the possibility of auctions? ITA stands behind user fees, but industry consultant Tom Cohen of Washington, D.C.-based Davison, Cohen and Co. cautioned that it is up to the private-radio industry to push for this and to present the hard facts.
“How do you value spectrum for lease purposes or for public-safety use?” he asked. “The FCC does not pay attention to any `public value’ opinions regarding spectrum, unless it means more jobs or international competitiveness. ITA needs to come in with backbone and intensity to keep the chairman’s feet to the fire.”
The panel suggested that private-radio users give their congressmen answers to the following questions to gain anti-auction support: What is a carrier’s impact on jobs? What is spectrum, and how does it impact the congressman’s district? How will carriers use new spectrum if they can get it without dealing with an auction?
