Subject: [NEXTEL-1] FCC Urges Congress to Kill Bill That Gives Away Free License

From: [email-masked]
Date: Tue, 14 Oct 2003 13:15:39 -0400

FCC Urges Congress to Kill Bill That Gives Away Free License The Federal
Communications Commission chairman Michael Powell told Congress to table
legislation that would allow companies to receive a wireless terrestrial license
worth up to $100 million without charge. Northpoint Technology was able to lobby
to have language added to a Senate spending bill that would give away the license
without an FCC auction. Northpoint argues that others such as DirecTV did not have
to pay for licenses in the past.  (Source: Financial Times)

==================================================================

FCC chief wants no giveaway of telecoms licence
Mon Oct 13, 4:40 PM ET

By Demetri Sevastopulo in Washington

The chairman of the Federal Communications Commission (news - web sites) has urged
Congress to kill legislation that could allow a company to receive without charge
a licence possibly worth $100m to provide a wireless (news - web sites)
terrestrial communications service.

Northpoint Technology successfully lobbied
lawmakers to include language in a Senate
spending bill that would allow it to receive
the licence without the need to bid at an
FCC (news - web sites) auction. The
Congressional budget office (news - web
sites) has estimated that the spectrum
licence could be worth more than $100m
(?85m, £60m).

"Instead of securing the maximum value of
this spectrum for the American public,
Congress would potentially hand over this
valuable public resource in what could
amount to a potential multimillion-dollar
government-created giveaway," Michael
Powell, FCC chairman, said in a letter to
Frank Wolf, chairman of the justice, state
and judiciary subcommittee of the House
appropriations committee.

Congress passed legislation in 1993
requiring the FCC to hold auctions to
allocate spectrum licences in an attempt to
allocate spectrum more efficiently. But
Sophia Collier, one of the Northpoint's
founders, says the FCC is stifling innovation
by forcing such start-ups as Northpoint to
pay for the spectrum - especially because
such large companies as DirecTV received the spectrum free in the past.
In his letter to Mr Wolf, obtained by the
Financial Times, Mr Powell argues that
allowing Northpoint to circumvent the
auction process would be inconsistent with recent FCC policy.

"I do not believe that limiting the commission's ability to auction this spectrum,
limiting the value the public would reap from such as licensing scheme or limiting
competition and innovation is the best policy for the American people," Mr Powell
wrote.

Senate and House lawmakers are expected to confer in the coming weeks on a common
commerce, judiciary and state bill. But John McCain, the chairman of the Senate
commerce committee, has complicated the process by placing a hold on the Senate
version of the bill. Mr McCain says provisions such as the Northpoint amendment
should be addressed within the Senate commerce committee, not the Senate
appropriations committee.

The White House has not taken a position on the debate this time around. But two
years ago, when Northpoint succeeded in attaching a similar amendment to another
piece of legislation, the administration said it "would strongly oppose any
amendment that would restrict the FCC's ability to assign, via competitive
bidding, spectrum licences".

Northpoint's opponents, including DirecTV and EchoStar, argue that Northpoint does
not plan to build a terrestrial system capable of delivering broadband and
television but rather intends to resell the licence to the highest bidder. But Ms
Collier insists the company plans to roll out service within two years at half the
cost charged by cable and satellite companies.

Northpoint, which has five employees, has built a network of high-profile
"affiliates" with political connections. The company has spent $580,000 on
lobbying in the past two years and hired Bob Livingston, the former Republican
congressman. Each member of this network of affiliates has agreed to put up 75 per
cent of the capital in its region to build the system if Northpoint gets the
spectrum free.

http://story.news.yahoo.com/news?tmpl=story&cid=1106&ncid=1293&e=6&u=/ft/20031013/bs_ft/1059480559158

--
    "NEXTEL-1 IT'S NOT JUST NEXTEL"
  Note The New address
Subscribe to Nextel-1: http://www.groups.yahoo.com/subscribe/NEXTEL-1

  "NEXTEL2 FOR iDEN SOFTWARE DEVELOPERS"
Subscribe to Nextel2: http://www.groups.yahoo.com/subscribe/NEXTEL2

  "WIRELESS FORUM HOMELAND SECURITY GROUP"
     The Complete Resource for Wireless Homeland Security.
Subscribe to WFHSG:  http://www.groups.yahoo.com/subscribe/WFHSG

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for your HP, Epson, Canon or Lexmark
Printer at MyInks.com. Free s/h on orders $50 or more to the US & Canada.
http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/mOAaAA/3exGAA/qnsNAA/61FxlB/TM
---------------------------------------------------------------------~->

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/