SENATE SUBCOMMITTEE SEEKS ANSWER ON 3G SPECTRUM DECISIONS
Senate Commerce Committee’s communications subcommittee took first run on Senate side Tues. on difficult spectrum allocations decisions that remain unresolved for 3rd generation wireless. Panel members questioned govt. officials closely on how efficiently both military and commercial operators are using existing spectrum allocations. Echoing Pentagon concerns raised at House hearing last week (CD July 25 p1), Linton Wells, acting asst. secy. of defense for command, control, communications and intelligence, continued to outline obstacles to relocation of military users before 2010 for terrestrial systems and 2017 for satellite systems. Without choosing sides between whether incumbent commercial or military users should be moved, Subcommittee Chmn. Inouye (D-Hawaii) stressed need for compromise. “If the only option is to relocate the Defense Department, we must find comparable spectrum, develop a migration time frame that allows the Defense Department to maintain its operations as it vacates the spectrum and ensure that the Department’s costs are reimbursed,” Inouye said. Like other panel members, he emphasized need to reach solution that wouldn’t degrade military readiness.
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Sitting in on subcommittee hearing, Committee Chmn. Hollings (D-S.C.) said hearing “was probably the most important” that would be held by panel this year. Hollings dismissed concerns over financial part of solution, saying money could be made available. “I'm not worried about reimbursement of the Department of Defense,” he said, indicated his concern was about including all sides in decision-making. Ranking subcommittee member Burns (R- Mont.) said that if Telecom Act of 1996 appeared to have “a lot of moving parts… you haven’t seen anything yet.” Burns also warned against putting “together a piece of legislation in haste” before outstanding spectrum questions are answered. Several panel members expressed concern that aside from immediate 3G spectrum decisions, larger issues remain about updating spectrum management policy. Sen. Wyden (D-Ore.) urged injection of marketplace considerations into decision-making process to encourage incumbent operators across spectrum to use it more efficiently. Otherwise, “at the end of 3 to 5 years” this 3G proceeding could be extended out without much changing.
On panel of govt. officials, DoD’s Wells described challenges associated with CTIA suggestion that Army Corps of Engineers could free up spectrum by moving fixed wireless applications now in place at 1.7 GHz. CTIA had told House panel last week that half of fixed wireless systems operating in DoD spectrum at 1.7 GHz were used by Corps of Engineers for monitoring purposes. CTIA Pres. Tom Wheeler suggested migration path existed for such operations to kinds of services that commercial operators can provide. While Wells didn’t disagree with that assessment, he said problem is those fixed wireless users share band with other military incumbents. So moving fixed wireless operations still doesn’t entirely clear band. Sen. Stevens (R-Alaska) asked govt. panel about possibility of 2.5 GHz spectrum used by MMDS and Instructional TV Fixed Service licensees being taken off table for consideration. He repeatedly pressed panel about efficiency with which DoD is using existing spectrum. Stevens asked Wells what would happen if Pentagon was told it would have to use 30% less spectrum in 3 years. “I think you would be putting people at risk,” Wells replied.
Acting NTIA Dir. William Hatch said agency hasn’t found comparable spectrum in govt. bands for 95 MHz that DoD would give up if it’s forced to move. “We need to do a more detailed analysis to determine how much additional spectrum would be needed,” he said.
Inouye noted that many subcommittee members are also members of Senate military defense appropriations subcommittee. “So we are well aware of investments we have made” in military operations, he told Wells. Situation is marked contrast to House Telecom Subcommittee, where Rep. Wilson (R-N.M.) is only member that also sits on defense spending panel. In response to questions from Inouye, Wells said he was reluctant to provide precise figure on costs of moving operations from 1755-1850 MHz. “Some of our previous estimates were quite low” because DoD didn’t fully take into account different timelines for moving. Pentagon is now considering estimates based on various timelines, including costs connected with accelerating relocation beyond 2010 and 2017 datelines that DoD has said would be feasible.
On panel of industry representatives, Nucentrix CEO Carroll McHenry described financial difficulties that uncertainty over 3G decisions has created for MMDS licensees. FCC “encouraged” educators, commercial providers and equipment vendors to invest in conversion of this spectrum to 2-way digital broadband operations, McHenry said in written testimony. “Now, just as the services contemplated by the FCC are being rolled out, we are frozen in our tracks because the 3G proceeding has chilled the capital investment we need to build out our networks,” McHenry said. After months of study, “the MDS/ITFS community deserves a resolution of the issue.” McHenry also noted that MMDS licensees such as Nucentrix had purchased many of their licenses at auction. Now, “midway” through authorization periods of licenses, and months after receiving licenses for 2-way digital services, successful bidders face possibility of losing spectrum, he said. “If winning bidders at spectrum auctions cannot be guaranteed, with reasonable certainty, that the government will honor its commitments and allow them to operate their licenses for the full term, the credibility of the auction process will be irreparably destroyed,” McHenry said.
As he did last week at House 3G hearing, Verizon Wireless CEO Denny Strigl raised concerns over $9 billion that carrier bid on licenses that U.S. Court of Appeals, D.C., recently ordered should be returned to NextWave. “This spectrum is necessary to meet the continued demand for mobile voice and to begin the deployment of advanced 3G services,” Strigl said. “Unfortunately, this spectrum is stuck in legal limbo with the likelihood of protracted legal battles.” He told subcommittee that “Congress should do all it can to encourage the parties to settle.”