EVANS TELLS FCC THAT AUCTIONING 700 MHZ NOW WOULD BE ‘PREMATURE’
Commerce Secy. Donald Evans urged FCC Chmn. Powell, in letter released Thurs., to postpone June 19 auction of 700 MHz band, even without congressional action. Writing on behalf of Administration, he warned that until there was more certainty about spectrum clearing, auction “would be premature and contrary to public interest.” While lauding recent FCC proposal for voluntary steps for accelerating DTV transition, Evans said: “Significant uncertainty remains today about the date on which the spectrum in those bands will become available for new wireless services.” He said Administration still believed legislative postponement of auction deadlines was “preferable” and that it would continue to work toward that. But he said FCC previously had “exercised its discretion” to delay 700 MHz auction and urged it “to do so again.” Evans’ letter came day after Powell testified before House Appropriations subcommittee that in absence of legislative change, he would be uncomfortable about delaying auction again and violating congressional mandate (CD April 18 p1).
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House Commerce Committee leaders are drafting legislation to delay indefinitely 700 MHz spectrum auction and “in all likelihood will introduce the bill early next week,” committee spokesman Ken Johnson said. Although Chmn. Tauzin (R-La.), ranking Democrat Dingell (Mich.), Telecom Subcommittee Chmn. Upton (R-Mich.) and ranking Democrat Markey (Mass.) were working on bill’s language, they didn’t intend to establish possible time frame for auction, Johnson said: “Simply put, the auction is not ready for prime time. The FCC has no 3G plan in place, no HDTV plan in place, and most importantly no comprehensive spectrum management plan.” Tauzin, Dingell, Upton and Markey will attempt to get other committee members to sign on as co-sponsors before they drop bill, Johnson said. Responding to FCC Chmn. Powell’s testimony this week before House Appropriations Subcommittee, in which Powell expressed reluctance to delay auction in order to avoid litigation, Johnson asked: “When has the threat of being sued stopped the FCC from doing anything?”
Evans said Administration’s budget proposal would postpone statutory deadlines for Ch. 60-69 spectrum to 2004 from 2000 and for Ch. 52-59 spectrum to 2006 from 2002. “These auction shifts are intended to provide the time necessary to resolve existing uncertainties about when and how this spectrum will be cleared and ready for the deployment of new services,” Evans said. He encouraged FCC to again use its discretion to postpone auction, “at least to provide sufficient time for Congress to act.” Evans said Administration planned to work with FCC and Congress to ensure that “an equitable and efficient solution for relocating incumbents in these bands is possible… Until then, too much uncertainty remains to move forward with the auctioning of this spectrum.”
At Subcommittee on Commerce, Justice, State and Judiciary hearing Wed. on FCC FY 2003 budget, Powell expressed concern about how Commission could defend violation of statutory deadline in court if FCC were to be sued if auction were delayed without statutory change. Powell said letter from Congress urging delay wasn’t same as legislative change. FCC faced Sept. 30, 2000, deadline for depositing funds from Ch. 60-69 auction in U.S. Treasury and statutory deadline for Ch. 52-59 is Sept. 30, 2002. FCC Wireless Bureau last week turned down CTIA request to delay June 19 date, leaving open possibility that the full Commission could revisit issue on review.
Letter marks 3rd time that Administration has weighed in at FCC on spectrum issues in recent months other than continued dialogue on ultra-wideband proceeding. In March, NTIA Dir. Nancy Victory wrote on behalf of Bush Administration to FCC, encouraging it to “act promptly and conclude” proceeding on secondary spectrum markets. In Oct., Victory urged FCC to enact “full and immediate repeal” of wireless spectrum cap.
“We hope the FCC can read the writing on the wall -- from the Administration, from the industry and others -- forcing an auction at this time harms public safety, wireless consumers and the American taxpayer,” said CTIA Pres. Tom Wheeler: “Commerce Secretary Evans has underscored the reality that conducting this auction now is inconsistent with efficient spectrum management, and with the Administration’s efforts to further spectrum reform.”
But Paxson Communications Chmn. Lowell (Bud) Paxson told us Thurs. he was heartened by statement in Evans’ letter that Administration believed legislative delay of auction deadlines was “preferable.” He has strenuously objected to delaying 700MHz auction, criticizing CTIA arguments that more time was needed as “nonsense.” Noting that Tauzin and others planned to drop bill that would delay June 19 date, he said: “I don’t think that they could get it passed in time” to make difference. Paxson reiterated that there were bidders interested in competing for 700 MHz licenses at auction, so calls to delay it weren’t unanimous in industry. “The only people behind the postponement today are the big telcos,” Paxson said. In House subcommittee hearing, “Chairman Powell seemed to send a strong signal,” Paxson said. Referring to letter from Wireless Bureau Chief Thomas Sugrue rejecting CTIA request for delay, he said he doubted that bureau decision would have been undertaken without backing from 8th floor.
Sen. Graham (D-Fla.) wrote to Powell Mon., lauding his “demonstrated focus on carrying out the intent of Congress to reallocate this spectrum for commercial and public safety services.” Last month, House Commerce Internet Subcomittee Chmn. Stearns (R-Fla.) and Rep. Bilirakis (R-Fla.) wrote Powell, urging auction proceed as scheduled. “We strongly encourage you to avoid further delays and proceed with the auction timetable,” they wrote March 7.