Subject: [NEXTEL-1] House Passes Spectrum Relocation Bill

From: [email-masked]
Date: Thu, 12 Jun 2003 06:47:21 -0400

June 11, 2003
House Passes Spectrum Relocation Bill
By Roy Mark

The U.S. House of Representatives approved legislation
Wednesday designed to move spectrum that is considered
so valuable it has been dubbed "beachfront property" from
the government to the private sector. If eventually passed
by the Senate, the legislation will clear airwaves for private
companies deploying third generation wireless services.

The Commercial Spectrum Enhancement Act (H.R. 1320)
seeks to help federal agencies relocate to comparable
wavelengths to make way for private wireless carriers'
advanced wireless service offerings to consumers. The
government already has identified the 1710-1755 MHz band,
mostly currently used by the military, for relocation to the
private sector.

Sponsored by Rep. Fred Upton (R.-Mich.), the legislation
creates a a spectrum relocation fund for federal agencies.
Under current law, a commercial telecom has to win a
spectrum license at a Federal Communications Commission
(FCC) auction and then negotiate separately with an
affected federal agency regarding the price and timeline for
the agency to move its spectrum operations to another
band.

Upton's bill requires the Office of Management and Budget
(OMB) and the National Telecommunications and Information
Administration (NTIA), an agency of the U.S. Department of
Commerce and the administration's principal voice on
spectrum, to provide a cost estimate and timeframe for
relocation to the FCC prior to auction.

The FCC then will hold its auction, but cannot close until
the bidding equals at least 110 percent of the estimated
relocation cost. Once the auction is closed, the winning
bidder's money will be placed in a newly created spectrum
relocation trust fund and the relocating agency will draw
down directly from that trust fund until the relocation is
complete and fully paid for.

"This is good news for government agencies who know that
they will be made whole when they relocate to comparable
spectrum and the taxpayer who will not have to pay a dime
to relocate government agencies," Upton said.

The bill has received the endorsement of the military, the
Bush administration and the Cellular Telecommunications and
Internet Association (CTIA). Companion legislation (S. 865)
has been introduced in the Senate.

"This is a big win for consumers and for government
spectrum users. The legislation ensures that sufficient
airwaves will be available to support millions of wireless
users, who are increasing their use of wireless voice and
adopting wireless data at record speed," said Steve Berry,
SVP for Government Affairs at the CTIA. "It also offers
government incumbents, especially the Department of
Defense, the whole package: sufficient funding for
relocation and a clear plan for a smooth transition into
alternative bands of spectrum.

http://dc.internet.com/news/article.php/2220591

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