WASHINGTON—As expected, U.S. legislators on Wednesday introduced the Auction Reform Act of 2002 to delay the 700 MHz auction.
“I am delighted that 52 members of the [House Commerce Committee] are original co-sponsors of this legislation. It demonstrates that an overwhelming majority of members of our committee know that holding the auction in June is the wrong policy decision for the FCC (Federal Communications Commission) to make. The FCC should use its own authority to delay these auctions. And we are making clear that holding the auctions within the FCC’s designated timeframe is contrary to both sound regulatory policy and contrary to the Communications Act,” said Representative Billy Tauzin, chairman of the House Commerce Committee.
“We are pleased the members of the House have voiced such a strong, bipartisan chorus of support for delaying the 700 MHz auctions. Delaying the auctions is a necessary piece of creating a national, long-term spectrum plan. The FCC’s Wireless [Telecommunications] Bureau’s rejection of CTIA’s extension request relied heavily upon congressional expectations. Perhaps this broad and bi-partisan showing will help the commission realize that an auction at this time is a bad idea,” said Thomas Wheeler, president of the Cellular Telecommunications & Internet Association (CTIA).
Tauzin said the Auction Reform Act was necessary for the following reasons:
“No comprehensive plan exists for allocating additional spectrum for third-generation (3G) wireless and other advanced mobile communications services;
The study being conducted by the National Telecommunications and Information Administration (NTIA) and the Pentagon to determine whether the Pentagon can share or relinquish additional spectrum for [3G] will not be completed until after the June 19 auction date and long after the applications must be filed to participate;
It is difficult for wireless carriers to make a sound business decision concerning what options are available for spectrum for [3G] until the NTIA/Pentagon report has been released and evaluated;
The [FCC] is also in the process of determining how to resolve the interference problems that exist in the 800 MHz band, especially for public safety. One option being considered for the 800 MHz band would involve the 700 MHz band. The commission should not hold the 700 MHz auction before the 800 MHz interference issues are resolved or a tenable plan has been approved;
The 700 MHz band is still occupied by television broadcasters, and will be so until the digital transition is complete;
The encumbrance of the 700 MHz band reduces both the amount of money that the auction would be likely to produce and the probability that the spectrum would be purchased by the entities that valued the spectrum the most and would put the spectrum to its most-productive use; and
The [FCC’s] rules governing voluntary mechanisms for the vacation of the 700 MHz band by the broadcasters produced no certainty that the band would be available for advanced mobile communications services, public-safety operations, and other purposes any earlier than the existing statutory framework provides.”
