WASHINGTON-The Senate Commerce Committee may have killed the wireless industry’s hopes of gaining much-desired frequencies in the 1700 MHz band when it amended a bill that would allow the Pentagon to be reimbursed for vacating the desired frequencies.
The amendment would allow a digital broadcast satellite licensee to offer a wireless Internet solution to rural America. The company in question, Northpoint Technologies, has been in a long-running battle to offer its service, which uses both satellite and terrestrial technology to offer wireless broadband access. The amendment passed by a 13-8 roll call vote and then the underlying bill, which many had thought would pass the committee without controversy, was sent to the Senate floor.
In addition to the wireless industry’s opposition to Northpoint getting its license outside the auction process, the Northpoint amendment to the Commercial Spectrum Enhancement Act, could have far-reaching consequences.
Sen. John McCain, chairman of the Senate Commerce Committee, said the Bush administration had sent him a letter indicating it would oppose the spectrum relocation trust fund legislation if it had any amendments attached to it.
Even if the wireless industry is successful in stripping the Northpoint provision from the relocation trust fund bill, it will have to do battle with Senate appropriators who believe this legislation is an attempt by the Office of Management and Budget to get money allocated outside the appropriations process.
Sen. Ted Stevens, chairman of the Senate Appropriations Committee, warned the issue would resurface when the relocation trust fund bill is debated on the Senate floor. Stevens wants spectrum relocation funds to go the Treasury instead of going directly to the Pentagon.
