WASHINGTON-The National Telecommunications & Information Administration said Wednesday that it will cost nearly $1 billion to relocate federal spectrum users from the 1710-1755 MHz band. The relocation would allow the government to auction the band for third-generation wireless uses.
The Congressional Budget Office had estimated it could cost as much as $2.5 billion to move the 12 federal agencies off of more than 2,200 frequency assignments in the band.
The lower official estimate, required by the Commercial Spectrum Enhancement Act, means that the 3G auction, scheduled for June, will not have to raise as much money. CSEA requires the Federal Communications Commission to only accept bids that total 110 percent above the relocation estimate. If the auction does not meet that standard, it will be suspended and conducted again.
CTIA believes the auction “will bring in excess of 110 percent provision,” said Joe Farren, CTIA director of public affairs.
“Today’s spectrum announcement is great news for American consumers and the U.S. economy,” said Michael D. Gallagher, assistant secretary of Commerce for Communications and Information. “We found a way to open up ‘beach front’ spectrum for key economic activity without jeopardizing our national security. The determined leadership of the Department of Defense, NTIA’s Office of Spectrum Management, the FCC and the private sector charted a unique path of ensuring our economic as well as our national security.”
Gallagher recently announced he will leave NTIA sometime early next year.
T-Mobile USA Inc. praised NTIA for meeting the Dec. 31 deadline for estimating relocation costs.
“With consumer demand for wireless services soaring, we are encouraged to see NTIA do its part for consumers and the economy by ensuring the government stays on track to deploy additional spectrum for broadband services,” said Thomas Sugrue, T-Mobile vice president of government affairs.
Industry observers expect T-Mobile to be a major bidder on the spectrum.
Government users are being moved off the 1710-1755 MHz band and non-federal wireless users off the 2110-2155 MHz band to clear the way for 3G, also called advanced wireless services.
