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Commissioner accuses feds of subverting relocation process

WASHINGTON-Federal Communications Commissioner Harold Furchtgott-Roth last week leveled perhaps his strongest criticism yet against fellow telecom regulators and the Clinton administration, accusing both of subverting the process for moving military users and others off spectrum so frequencies can be auctioned for third-generation mobile-phone systems and other new wireless services.

In a separate statement accompanying a proposal to transfer 27 megahertz (216 MHz-220 MHz, 1390 MHz-1395 MHz, 1427 MHz-1429 MHz, 1429 MHz-1432 MHz, 1432 MHz-1435 MHz, 1670 MHz-1675 MHz and 2385 MHz-2390 MHz) from the federal government to the private sector, Furchtgott-Roth accused the Democratic FCC majority of allowing the Clinton administration to dictate terms of the spectrum regulatory proceeding.

The Republican commissioner questioned the role of the National Telecommunications and Information Administration, a unit of the Commerce Department that manages federal government spectrum and advises the White House on telecom policy.

“It is essential for the commission to maintain its independence, particularly the integrity of the decision-making process at the commission level … In a disturbing trend, some have shown a distressing willingness to cede significant institutional ground to NTIA behind close doors. The FCC has at times been relegated to an almost subservient role of merely rubber-stamping those decisions that have the prior approval of the administration. Indeed, absent close attention, this process may transform NTIA from a partner into a supervisor,” said Furchtgott-Roth.

At a recent briefing with reporters, Furchtgott-Roth lashed out at FCC Chairman William Kennard for failing to exercise independence in connection with President Clinton’s Oct. 13 directive to federal agencies to determine the availability of spectrum in the 698 MHz-960 MHz, 1755-1850 MHz and 2500 MHz-2690 MHz bands earmarked for 3G by the World Radiocommunication Conference in June.

In addition, Furchtgott-Roth said the United States appears to be abandoning its flexible, market-driven spectrum approach and instead embracing an industrial policy approach to 3G that Europe, Japan and others have adopted.

“My understanding is that we fought very hard not to be bound by any band plans,” Furchtgott-Roth told reporters at a Nov. 16 briefing. “I think I would be very surprised if the people at the Department of Defense, for example, thought that the U.S. position was to actually seriously consider” clearing the 1700 MHz band, he said at that time.

Last week was more of the same for the outspoken FCC commissioner, known for his strict reading of legal doctrine.

In months past, Furchtgott-Roth has criticized the FCC merger review as being illegal.

“On this particular issue, he just doesn’t seem to get it,” said Gregory Rohde, director of NTIA.

Rohde said NTIA, given its legal responsibility for managing federal government spectrum, was obliged to express its views before the FCC issued the spectrum reallocation proposal last Monday. Rohde said he and Kennard support the White House’s 3G initiative because they both realize how important it is to the United States.

“What the commissioner fails to understand is NTIA is not a commenter; it is an equal regulator,” said Rohde. “He should reread the statute.”

Federal agencies are under tight deadlines to determine whether spectrum identified for 3G at WRC-2000 in Istanbul can be shared with others or whether military, educational, religious and fixed wireless licenses on the 1700 MHz and 2500 MHz bands can be moved to other frequencies. The cost for accomplishing the latter would be borne by mobile-phone firms, though there is talk of using some auction receipts to defer relocation expenses that could total hundreds of millions of dollars.

Rohde said NTIA is close to completing rules for reimbursing federal agencies for spectrum-relocation costs. Whether legislation will be necessary to ensure the federal agencies get all the money coming to them, and will not be held hostage to budget politics, is unclear.

This week, NTIA is expected to post dates for more talks with industry on Clinton’s 3G spectrum plan.

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