WASHINGTON-The Federal Communications Commission is advocating legislation for spectrum fees, tax certificates and “two-sided” auctions as part of its new spectrum policy, a tack that drew a sharp rebuke last week from FCC member Harold Furchtgott-Roth.
“Speculation and advocacy is inappropriate in this [spectrum] statement,” said Furchtgott-Roth. Otherwise, the Republican commissioner-who has criticized the FCC for allegedly violating the law governing school and library Internet hookups-backed the agency’s new spectrum guidelines.
At present, there are bills in Congress to authorize spectrum lease fees and tax breaks for small businesses, including minorities. While there will be no action on either measure this year, both are expected to get serious consideration from lawmakers next year.
Under the two-sided auction approach, licensees could offer their spectrum for auction in conjunction with FCC sales of new spectrum. In exchange, parties who relinquish licenses to auctions could be relocated to new frequencies or receive compensation.
Overall, the spectrum plan-which lays the foundation for a series of upcoming proposals-got rave reviews by industry.
“I think it’s terrific. I think the commission is demonstrating that it’s taking spectrum management as seriously as FCC Chairman William Kennard said in his strategic plan,” said Michael Kennedy, of Motorola Inc.’s government affairs office here.
Indeed, the FCC embraced several recommendations-including considering band-manager licenses and global spectrum harmonization-made by Motorola to shore up spectrum management.
In addition, the FCC adopted Motorola’s proposal for a Spectrum Policy Executive Committee. The panel, to comprise bureau and office chiefs, will be headed by FCC Office and Engineering and Technology Chief Dale Hatfield.
“We are delighted that the FCC will be taking a holistic approach to spectrum management,” said Jay Kitchen, president of the Personal Communications Industry Association. “For far too long, the wireless industry has been frustrated by the federal government’s ad hoc, band-by-band approach to spectrum management.”
In drawing up a road map to guide the allocation of 200 megahertz (much of it transferred from the federal government), the FCC attempted to address hot-button spectrum issues involving private wireless, public safety, third-generation mobile and wireless local loop services.
While offering a balance of spectrum flexibility and government direction, last week’s spectrum policy statement represents a harsh repudiation of the unfettered, free-market spectrum policy that former FCC Chairman Reed Hundt unsuccessfully pushed. The spectrum plan recognizes private wireless needs, something that was largely overshadowed by auctions in Hundt’s regime.
The FCC said it will apply spectrum policy principles to the following plans under consideration:
Expand the General Wireless Communications Service spectrum to 50 megahertz and relocate it to the 4940-4990 MHz band.
Allocate 90 megahertz for mobile and fixed service at 1710-1755 MHz, 2110-2150 MHz and 2160-2165 MHz. It would be a flexible service that could be used for Internet-driven 3G wireless systems.
Establish a new Land Mobile Communications Service in 10 megahertz of spectrum at 1390-1395 MHz, 1427-1429 MHz and 1432-1435 MHz. The spectrum is intended to relieve private wireless congestion.
Reallocate the 48 megahertz at 698-766 MHz for fixed, mobile and new broadcast services for commercial uses.
