WASHINGTON-The spectrum reform draft bill unveiled by Senate Commerce Committee Chairman Larry Pressler (R-S.D.) last week would privatize much of the nation’s airwaves, a fundamental deregulatory policy shift that combined with the new telecommunications law could lead to the overhaul of the Federal Communications Commission over time.
The draft bill represents a radical departure from the public interest standard that has governed radio spectrum use for the past half century.
“The current environment hobbles progress,” said Pressler. “It makes it hard for innovators to gain access to the radio spectrum resources they need to deliver technology’s promise to the American people.”
Private wireless users and the federal government would be hit hardest, and commercial wireless carriers could face added competition in a brave new world that accords spectrum buyers virtually unrestricted rights.
“We look forward to working with Sen. Pressler, his staff and other lawmakers to assist in this legislation so that it accomplishes its objective and recognizes all telecommunications markets,” said Mark Crosby, president of the Industrial Telecommunications Association.
ITA members operate on private wireless spectrum that would be exposed to auctions under the Pressler initiative. Crosby called the measure “quite aggressive.”
Bill Hart, spokesman for the Personal Communications Industry Association, said the trade group strongly supports the legislation’s increased reliance of frequency coordinators, like PCIA.
Thomas Wheeler, president of the Cellular Telecommunications Industry Association, said the draft bill was being analyzed and declined to comment on it.
The grand spectrum bill is expected to be vigorously debated and may look much different by the time it is officially introduced. Congress will not act on the bill this year. Democrats, who traditionally have opposed overzealous deregulation, may pose problems for free market-minded Republicans.
Though the FCC would assume oversight of all spectrum once the National Telecommunications and Information Administration relinquishes federal government spectrum management, the commission’s role would nevertheless be largely reduced to that of an auctioneer.
The FCC’s auction authority would be expanded far beyond that enunciated in 1993 legislation, which limited bidding to commercial, subscription-based services like paging, pocket telephone and for-profit dispatch radio, and be made permanent.
Spectrum for public safety, international satellites and digital TV would not be subject to auctions. While uncontested applications for spectrum licenses would be shielded from competitive bidding, recipients of such FCC permits and persons that share frequencies could have to pay user fees.
States would receive public safety spectrum block grants, with interference disputes between states arbitrated by the FCC.
“We have a genuine concern about that concept because states are not equipped to do it,” said Robert Gurss, an attorney who represents the Associated Public Safety Communications Officers-International.
