WASHINGTON-The White House today clarified that a new budget proposal to set user fees on un-auctioned spectrum would not lead to taxes on frequencies designated for Wi-Fi. But the White House said satellite, taxi and other industry sectors that do not pay for spectrum could be forced to pay for use of the nation’s airwaves in the future.
“The administration’s proposal does not impact unlicensed spectrum. We do not wish to charge fees on unlicensed use,” said Alex Conant, a spokesman for the Office of Management and Budget.
OMB specified that radio channels reserved for Wi-Fi and cordless telephones are off the table insofar as spectrum user fees. President Bush, who sees wireless technology as key in achieving his goal of universal and affordable broadband access by 2007, likely would have faced strong opposition from wireless and high-tech companies were he to attempt to extract fees from the use of Wi-Fi and other unlicensed technologies.
RCR Wireless news reported Monday on the Bush administration’s plan to squeeze more money from the nation’s airwaves by supporting legislative changes that would allow the Federal Communications Commission to set “user fees” on “un-auctioned” radio spectrum. The proposal is contained in the president’s 2007 budget plan.
Although Wi-Fi is not covered under the proposed spectrum tax, other spectrum users are not so lucky.
“The FCC would be provided with the discretion to implement the fee authority in accordance with public interest and spectrum management principles,” said OMB. “The payer of the fees would be license holders who acquired a license through an assignment mechanism other than auction. This could be firms who acquired their license before auctions were implemented, or those that hold a license for a service that the FCC does not auction. Satellites are one example, taxi companies are another. The FCC would make the ultimate determination on where the fees would be assessed.”
Bush wants to raise $3.6 billion in the next 10 years from user fees on spectrum currently not subject to auctions. In addition, the administration foresees generating many billions of dollars more from the sale of advanced wireless service licenses. The AWS auctions are scheduled to start in June.
The FCC was not immediately available for comment.
OMB said the Bush administration is working to develop legislation similar to the version sent to Congress three years ago.
