Subject: [NEXTEL-1] NTIA REPORTS TO CONGRESS ON "3G" SPECTRUM

From: [email-masked]
Date: Tue, 27 Apr 2004 07:19:47 -0400

The Honorable Richard B. Cheney
President of the Senate
276 Dwight D. Eisenhower Executive Building
Washington, DC 20501

Dear Mr. President:

The legislative history of the Consolidated Appropriations Act, 2004,
Pub. L. No. 108-199, 118 Stat.  3 (2004), called for the National
Telecommunications and Information Administration (NTIA) to report on
“further actions needed in the allocation of spectrum to the civilian
sector for the effective deployment of third generation (3G) wireless
devices in the United States.”  I am writing you today to provide you
with NTIA’s assessment of the major actions that must be completed to
achieve this objective.

The study, identification and allocation of spectrum for 3G services
have required close coordination
and cooperation between NTIA, the Federal Communications Commission
(FCC), the Department of Defense,
and other Federal agencies. Significant progress has been made. In July
2002, NTIA released an assessment ( “Viability Assessment’) which
identified 90 MHz of spectrum that could be allocated for 3G services to
meet the increasing demand for new commercial services without
disrupting communications systems critical to national security.  On
November 7, 2002, the FCC reallocated this 90 MHz of spectrum to fixed
and mobile services, making it available for advanced wireless
services.  On November 25, 2003, the FCC adopted service rules for this
spectrum, including provisions pertaining to application procedures,
licensing, technical operations, and competitive bidding.

There remain, however, three major actions that should be taken to
complete to make the deployment of 3G services optimally possible: (1)
enactment of the President’s proposal to create a spectrum relocation
fund; (2) completion of the FCC’s rules to identify spectrum for some
Federal operations that must relocate; and (3) an auction scheduled by
the FCC.

First, as noted in the Viability Assessment, funding must be available
for government systems to modify
or relocate their systems to make this spectrum available. NTIA has
issued rules requiring the private sector
licensees that obtain 3G licenses at auction to negotiate with Federal
agencies to reimburse the agencies for the
cost of relocation.  The Administration strongly supports legislation
that would change the reimbursement
process by creating a relocation fund using auction proceeds.  H.R.
1320, as passed by the House, would
greatly streamline the reimbursement process, and thus, speed relocation
of Federal agencies and private sector
access to the spectrum. NTIA urges Congressional enactment of this
legislation this year.

Second, the FCC and NTIA must complete the necessary identification of
frequencies in other bands to
which Federal government systems can relocate. NTIA has identified
frequencies in the 7 and 8 GHz bands for
Federal government microwave systems to move. The FCC has also initiated
a proceeding to make spectrum available in other bands for certain other
Federal systems.  The comment period for this rulemaking ended on
December 1, 2003. It is anticipated that the FCC will issue final rules
shortly.

Finally, the FCC must schedule an auction to license this spectrum by
competitive bidding. NTIA,
however, would not support such an action until identification of
alternative frequencies for the affected Federal
systems has been completed.

If you have any questions, please feel free to contact me or James
Wasilewski, Acting Director of Congressional Affairs at (202) 482-1551.

Sincerely,

/s/ Michael D. Gallagher
Acting Assistant Secretary for
Communications and Information

 http://www.ntia.doc.gov/ntiahome/congress/2004/3Gletter_04152004.htm

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