WASHINGTON-The Federal Communications Commission indefinitely postponed the scheduled Sept. 12 auction of licenses in the 700 MHz band, amidst a move in the House Appropriations Committee to stop setting arbitrary deadlines for spectrum auctions.
The auction was postponed, the FCC said, to give the agency more time to deliberate reconsideration petitions dealing with the relocation of TV broadcasters that occupy the band. This has been an ongoing controversy since the 700 MHz band was first designated to be auctioned with the transition to digital TV technology. While broadcasters are scheduled to exit the spectrum involved-channels 60-69 on the TV dial-by 2007, it is unlikely they will do so. In 1997, Congress inserted language in the Balanced Budget Act that said they were not required to leave until 85 percent of the homes in their area were capable of receiving a digital signal.
The wireless industry had urged the FCC to hold off on the auction until it could make a definitive decision on the various contentious relocation issues.
The FCC’s action came one day after the House Appropriations Committee passed language aimed at ending the practice of ordering the commission to hold auctions by a certain date.
“The FCC faces a number of complex issues related to spectrum licensing and allocation this year-the ramifications of which will affect communications policy over the long term. The committee supports thorough and timely reviews and will avoid any effort to impose arbitrary deadlines upon consideration of these matters,” said the House Appropriations Committee in a report accompanying the FCC budget.
The language was seen by many as a warning to the Senate since auction deadlines traditionally have emanated from the Senate. For example, the Senate decided the 700 MHz band needed to be auctioned before September 2000 to provide money for the defense operations in Kosovo. The FCC won the first of many delays once the federal surplus became a reality.
There was another oblique warning in the House report aimed at both members of Congress and the FCC against setting up “regional projects, which might not benefit the nation as a whole.” According to a House appropriations staffer, several members of Congress have approached either the Appropriations Committee or the FCC about setting up research projects, such as communications technology centers at universities. The FCC’s budget has not previously been earmarked for such purposes and the House Appropriations Committee was not about to start now, said the staffer.
The House Appropriations Committee budgeted nearly $238.6 million for the FCC for fiscal year 2002. This is nearly $10 million below the president’s request, but $9 million more than the agency received for fiscal year 2001.
The budget allows the FCC to recover nearly $219 million of its allocation from regulatory fees, which are used to offset appropriations and are assessed each year by the FCC. The FCC recently lowered the amount the wireless industry must pay from 30 cents to 27 cents per subscriber.
The House Appropriations Committee is concerned with how the FCC expects to spend its money so the agency has been directed to submit a financial plan by Sept. 15.
In its report, the committee gave the FCC some direction on how it thinks the money should be allocated. For example, no more than $4,000 should be used for official receptions.
The committee reminded the FCC of its core mission. “The mission of the FCC is to implement the Communications Act of 1934 in a manner that promotes competition, innovation, and deregulation in the communications industry and the availability of high-quality communications services for all Americans.”
The FCC’s budget is expected to be considered this week by the full House and the Senate Appropriations Committee. The Senate hopes to pass its version before the August recess.
