WASHINGTON-As policy-makers last week voiced support for a plan to move the Pentagon off spectrum sought by the mobile phone industry for third-generation wireless systems, Joint Chiefs of Staff Chairman Henry H. Shelton warned Congress that further loss of frequencies will compromise military capability but signaled the Department of Defense was open to compromise.
Last week’s developments unfolded as the Federal Communications Commission prepares to issue a new proposal examining additional frequencies-other than the 700 MHz, 1700 MHz, 2500 MHz bands designated globally for 3G but currently occupied by schools, churches, DoD and others-for high-speed Internet-ready mobile phones. At the same time, the FCC is under growing pressure to issue mobile satellite services licenses that would operate on 2 GHz spectrum that mobile phone firms now want as a counter move to Craig McCaw’s request that New ICO be allowed to supplement MSS with land-based cellular communications.
Complicating matters are increased indications of divisions within the mobile satellite and mobile-phone industries over spectrum policy.
“I am concerned that further reallocation of frequency spectrum for commercial use, without comparable spectrum to execute DoD’s critical functions, will have a major impact on our ability to use advanced communications technology to exchange vital information between decision-makers, commanders and deployed forces,” said Shelton in written testimony at a Senate Armed Services Committee hearing last Thursday.
However, Shelton added: “It is imperative that we strike a reasonable and informed balance between commercial needs and military requirements. … We anticipate that suitable solutions will be found that are acceptable to all parties.”
The Pentagon may be reacting to indications of a momentum shift to industry in the spectrum tug-of-war with DoD. The controversy is expected to play out the remainder of this year and bleed into 2002. Indeed, the scheduled June 2002 auction of 3G licenses likely will be postponed.
Last Tuesday, FCC Chairman Michael Powell informed Commerce Secretary Donald Evans in a letter that a final 3G spectrum decision-scheduled to be made by July 31 under a timetable established last fall by the Clinton administration-would be delayed to enable the FCC and the White House more time to study their options.
Powell, when questioned at an appropriations hearing by Sen. Ted Stevens (R-Alaska) last week, agreed that an arrangement that compensates DoD for modernization in return for handing over the 1700 MHz to industry is worth pursuing.
The cellular industry sought the 3G regulatory delay because two government studies in March concluded mobile phone firms and DoD likely would be unable to share the 1700 MHz band now held by the Pentagon. More recently, the industry suffered a major blow when a federal appeals court here voided a $17 billion auction that benefited several of the nation’s top mobile-phone carriers.
The 3G spectrum issue, which is the subject of intense lobbying on Capitol Hill, is being addressed in a White House process led by the National Security Council and the National Economic Council. Evans has acted as a catalyst in getting the administration focused on the issue.
Defense Secretary Donald Rumsfeld, who is conducting a comprehensive military review and looking for additional funds for defense readiness, modernization and quality of life improvement, has not taken a public stand on the 3G spectrum debate. However, top brass are strongly opposed to vacating the 1700 MHz band without full compensation in terms of money and comparable alternative spectrum. But because of budgetary pressures and policy priorities-including the Bush administration’s desire for funding of a space-based missile defense system-Rumsfeld could be forced to cut a deal with a well-heeled mobile-phone sector that-in generous financial fashion-contributes to congressional and presidential campaigns.
The mobile-phone industry has drafted legislation-which Reps. Chip Pickering (R-Miss.) and Fred Upton (R-Mich.) plan to introduce later this year-that would reimburse DoD for moving to other frequencies with 3G auction money, but there is no agreement on alternative spectrum for the Pentagon.
Under a 1999 law, the chairman of the Joint Chiefs and the departments of commerce and defense must consent to replacement spectrum and certify that finding to Congress. The industry bill would effectively override that provision and make the commerce secretary responsible for turning over the 1700 MHz band to the cellular industry.
RCR Wireless News Washington reporter Heather Forsgren Weaver contributed to this report.
