WASHINGTON-Minutes (literally) before the Senate adjourned for the year, it managed to pass a troika of important wireless bills-spectrum relocation, enhanced 911 upgrades and universal service.
“It was dicey. There was never a moment until it got done that we were confident that it would get done. It was a significant victory,” said CTIA President Steve Largent.
One measure would create a fund-from revenue of spectrum auctioned for third-generation wireless licenses-to pay to relocate certain military radio systems from 1700 MHz to other frequencies. The legislation is based on a Bush administration-brokered deal that compensates the Department of Defense for clearing 45 megahertz of spectrum that mobile-phone carriers could occupy to provide 3G services.
The FCC plans to hold the 3G auction no sooner than 2006, having to give the National Telecommunications and Information Administration 18 months notice before frequencies can be auctioned. NTIA must report to Congress next December on options for paying relocation costs of federal agencies whose frequencies have been reallocated for unlicensed, public safety, shared, or non-commercial use.
The relocation bill enjoyed bipartisan Congressional support and White House backing.
“The new legislation streamlines the process in a one-step approach. Government entities would identify cost estimates for transitioning out of the spectrum and can proceed in a timely fashion to plan and execute the transition certain that they will be reimbursed for all incurred costs. These estimates will be reviewed by OMB [Office of Management Budget] and Congress. More importantly, commercial bidders will be certain of the costs they will incur and when the spectrum will be available,” said Badri Younes, DoD director of spectrum management. “The passage of this legislation represents a win-win for the commercial sector as well as incumbent government users.”
Creating a spectrum-relocation trust fund was the major effort (and win) of the wireless industry. The trust fund will “substantially reduce the uncertainty facing potential bidders as they would not be held hostage by existing users-in this case the military-who may try to hold the migration process hostage to greenmail threats,” said George Reed-Dellinger, telecommunications analyst with Washington Analysis.
“Last night’s vote will accelerate the arrival of the broadband digital wireless age in the U.S. Streamlining the relocation process is a significant step in meeting President Bush’s call to remove regulatory roadblocks to rapid deployment of broadband. The bill will speed much-needed consumer access to spectrum-rocket fuel for economic growth,” said Michael Gallagher, assistant Commerce secretary for communications and information. “Congressional leaders who maintained their intensity through passage of this bill, and those industry leaders who worked well into the night, deserve credit for legislation that will boost both our national and our economic security.”
E911
Legislation to create an E911 grant program and an executive-level coordination office gained speed two years ago when four teens died off the coast of Manhattan when they dialed 911 from a cell phone, but their location could not be determined by the local public safety answering point. Notwithstanding this momentum, the bill had been slowed recently by fiscal concerns.
The $250 million grant program-which is a compromise figure between the House and Senate versions-must still be appropriated by Congress.
States and localities will only be eligible for grants if they have not raided their E911 funds for other purposes. Many states have collected 911 taxes from telecom users but instead of upgrading their systems, they have used it for other purposes.
“We have fought long and hard on the principle that the same 911 service should be available to every citizen, any time, anywhere,” said Bill McMurray of Marin County, Calif., president of the National Emergency Number Association. “The leadership of the Congressional E911 Caucus made all the difference. Like true first responders, they (the caucus) never gave up.”
The joint program office to coordinate E911 implementation efforts has been a key NENA objective and NENA’s lobbyist urged the Departments of Commerce and Transportation to come up with the money to fund the joint office now instead of waiting for appropriations from Congress.
“I believe NTIA and NHTSA should find discretionary money to start the office today. Don’t wait for an appropriation-start today!” said Stephen Seitz, NENA director of government affairs.
USF
The telecom industry became concerned earlier this year when the Universal Service Administrative Co. halted E-rate subsidies because of an accounting change.
USAC is a quasi-governmental organization created by the FCC to administer universal-service subsidies. As part of its efforts to tighten control on the much-derided E-rate program to connect schools and libraries to the Internet, the FCC recently ordered USAC to begin using Generally Accepted Accounting Principles, which meant it had to comply with the Anti-Deficiency Act. Because it couldn’t comply with the new accounting standards, USAC suspended E-rate payments in August.
More than 30 Republicans and Democrats from both houses wrote House and Senate leaders, focusing on the educational implications of the loss of E-rate funding.
“The recent suspension of funding for telecommunications services for schools and libraries has caused significant hardship for these institutions across the country, especially those in rural areas. The suspension has also threatened to drive up consumers’ telephone bills,” said Sen. Jay Rockefeller (D-W.Va.).
Congress said USF subsidies were temporarily not subject to the ADA. A permanent fix is thought to be the focus of universal-service reform legislation to be considered next year.
“We commend Congress for recognizing the devastating impact the FCC’s internal accounting modification would have had on rural telephone companies, and acting to prevent the ADA from being applied to the USF. Consumers everywhere have been saved from higher bills, our country’s schools and libraries, and rural healthcare providers will see immediate relief, and consumers in high-cost areas have a reprieve from the possibility that their local telecom networks could be in jeopardy. The work is far from over, but yesterday’s Senate action gives all affected parties time to develop a permanent solution to this issue,” said the Independent Telephone & Telecommunications Alliance, the National Telecommunications Cooperative Association, the Organization for the Promotion and Advancement of Small Telecommunications Companies and the Western Telecommunications Alliance.
Sen. Conrad Burns (R-Mont.), chairman of the Senate communications subcommittee, said he had insisted the Senate stay in session until it passed a bill allowing for universal-service subsidies to be released.
“This is not a small issue-many people have been negatively impacted, and it’s a huge win that we were able to get this through before the Senate recessed,” said Burns.
The telecommunications legislative package now goes to President Bush for his signature.
“House and Senate leaders worked hard to get this done, and consumers will benefit from their efforts. The legislation brings needed changes that will promote homeland security and increase wireless broadband opportunities. An accounting rule fix also ensures that the E-rate program for schools and libraries remains strong. I look forward to working with the National Telecommunications & Information Administration and the Bush administration to implement this vital legislation and advance E911, promote wireless broadband, and secure universal service for America’s schools and libraries,” said FCC Chairman Michael Powell.
The three bills had been tied together in hopes that all could overcome various obstacles.
The House of Representatives passed the bills before Thanksgiving, but they were held up on the Senate side.
It was unclear whether any of the three bills would pass, although key lawmakers had assured telecommunications policy-makers that the universal-service bill would be separated. Finally, a deal was struck late night last Wednesday that allowed the three bills to be passed, and the Senate said, “Good night and goodbye.”
