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WHITE HOUSE BLASTS DOD BILLS

WASHINGTON-While 911, encryption and commercial space launch bills advanced in Congress last week, other wireless-related bills remain steeped in controversy and uncertainty.

As important as 911, encryption, commercial space launch, privacy, private wireless, rural cellular and other initiatives are, the issues pale in comparison to Department of Defense bills and the far-reaching policy implications they pose for the wireless industry.

DOD bills would give the Pentagon priority use of shared spectrum and the global positioning system. In addition, a Senate DOD appropriations bill would require the auction of 36 megahertz of commercial wireless spectrum this year instead of after Jan. 1, 2001.

Critics say the DOD measures have the potential to undermine U.S. spectrum policy.

The White House last week spoke out on two of the three controversial DOD spectrum provisions.

“The administration believes that concerns about meeting critical spectrum requirements to secure the national defense can be addressed through the current spectrum management process and must continue to be evaluated in the context of the national and public interests as a whole,” said Jacob Lew, director of the Office of Management and Budget.

Lew’s comment came in response to a June 18 letter from Rep. John Dingell (D-Mich.), ranking minority member of the House Commerce Committee.

“I am reluctantly compelled to believe that these strange provisions stem either from an extreme and harsh reaction to one or two isolated instances of radio interference, or from a concerted plan to obstruct or whittle away at important spectrum decisions properly made by Congress, NTIA [National Telecommunications and Information Administration] and the FCC [Federal Communications Commission],” wrote Dingell.

Indeed, sources say the congressional push for DOD spectrum priority was prompted by military aerospace fears of interference from a new commercial satellite system planned by WorldSpace, a Washington, D.C., firm.

Dingell and Lew stayed clear of the combustible accelerated auction issue.

White House and congressional budgeteers, facing strict spending caps, support an accelerated auction and the $2.6 billion they hope it will generate in fiscal 2000.

Wireless upstarts and at least one major U.S. manufacturer, Motorola Inc., oppose an accelerated auction. Some large wireless operators, though, believe the auction can help them get more spectrum for Internet-friendly third-generation mobile phone systems.

Elsewhere, the Senate Commerce Committee easily passed 911 legislation. The bill would make the three-digit code the universal emergency telephone number and give wireless carriers limited liability protection on par with landline telephone companies.

A companion bill was overwhelmingly passed by the House in February.

“Thousands of lives could be saved each year by making 911 work like it should, which is what this bill will help do,” said Sue Hoyt, chairwoman of the ComCare Alliance and past president of the Emergency Nurses Association.

Legislative language on liability was touched up to assuage Sen. Ernest Hollings (D-S.C.), ranking minority member of the Senate Commerce panel and a big beneficiary of trial lawyer campaign donations. Hollings, like the Clinton administration, opposes legislation to give high-tech firms liability protection from lawsuits arising from year-2000 computer problems.

“The E911 act will benefit anyone who uses cell phones in this nation, but more importantly, it is vital for those living in rural states who rely on cell phones during emergencies,” said Sen. Conrad Burns (R-Mont.), chairman of the Senate Commerce communications subcommittee.

Despite progress of 911 legislation in Congress, implementation of federal rules requiring caller telephone number identification and location are way behind schedule because of legal, financial and technical problems.

The encryption bill passed by the Senate Commerce Committee prohibits domestic controls of encrypted software; immediately decontrols encryption products using key bit strengths of 64 bits or less; and permits the export of 128-bit encryption to a broad group of legitimate and responsible commercial users.

A similar bill to relax encryption export controls was passed by the House Commerce Committee last week.

The Senate Commerce Committee also passed a bill, sponsored by Chairman John McCain (R-Ariz.), to extend commercial space-launch indemnification by the U.S. government for 10 years to limit the amount of insurance coverage needed by commercial launch firms.

Under current law, which sunsets Dec. 31, 1999, the U.S. government will pay third-party claims in excess of $500 million if insurance claims are not compensated.

Policy makers want to shore up the U.S. space launch industry in light of technology transfer problems that have arisen from a growing dependence by American satellite firms on China and others for space launches.

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