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CONGRESS IGNORES SPECTRUM FEE OPTIONS

WASHINGTON-Congress declined to act on two spectrum fee approaches crafted by the Congressional Budget Office that likely would have drawn opposition from commercial wireless operators and private wireless licensees.

The recently released CBO memorandum, requested by the Senate Budget Committee while the budget deficit became a surplus, examined how to raise fees. One approach would have increased regulatory fees by $2 billion over five years ($400 million a year) to the Federal Communications Commission by commercial wireless carriers either by increasing regulatory fees or instituting new fees.

Today, regulatory fees on paging, cellular, specialized mobile radio, broadcasting and other licensees account for $50 million. Some wireless carriers have complained in the past about the fees and the fee structure. Another increase likely would reignite the issue.

The other option would impose a fee on private wireless users. CBO said doing so would force more efficient use of frequency bands and, thus, reduce congestion.

The Industrial Telecommunications Association, which has begun an aggressive lobbying campaign against private wireless auctions, said that while it is glad to see spectrum fees on the radar screen, it believes fees should accompany additional spectrum allocations.

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