On the eve of a markup of spectrum relocation trust fund legislat...

At a March 25 hearing, Pentagon officials told the subcommittee they had some limited, technical concerns about HR-1320, including timetables in subcommittee Chmn. Upton’s (R-Mich.) bill that would be difficult to meet. The changes made since that hearing address congressional oversight issues -- how reviews are to be integrated into the process to ensure that DoD cost estimates for relocation from spectrum don’t go out of control while guaranteeing that federal users that move are fully reimbursed, an industry source said. The modifications also provide more opportunities for congressional oversight, as well as processes for submitting expenses for General Accounting Office review and subsequent reviews if costs exceed 110% of the govt.’s estimate. CTIA Senior Vp-Governmental Affairs Steven Berry told Tauzin and Dingell that the wireless industry supported the changes “because they remain true to the legislation’s central aim of providing a certain, predictable and accountable relocation process.” CTIA also urged Tauzin and Dingell to “oppose any amendment that would tip the careful balances struck in the legislation. While other ideas may have merit, it is unwise to place government reimbursement at risk.” Berry said Stephen Price, deputy asst. secy. of defense for spectrum, had called for a “trustworthy trust fund” at the March hearing. The measure is considered key to clearing Defense Dept. incumbents from spectrum earmarked for advanced wireless services. Last year, the Pentagon agreed to clear most of 1710-1755 MHz, which is part of 90 MHz being made available for advanced commercial wireless services, including 3G. Current law requires commercial entities to reimburse federal users for the costs of relocating from reallocated spectrum. The proposed spectrum relocation trust fund would change the system to a central relocation fund financed from auction receipts from the current system of direct payments from commercial entities to federal agencies. “The current process is a ‘black hole’ for both government agencies and the private sector -- filled with uncertainty, punctuated by unknown costs and bereft of predictability,” Berry wrote in the letter to Tauzin. “The current process works for no one.” Telecom Subcommittee ranking Democrat Markey (Mass.) at the hearing supported a bill he recently introduced that would create a spectrum commons and would set up trust fund provisions that would include a $5 billion cap and a separate fund for technology training for schools. Both Price and NTIA Dir. Nancy Victory expressed concerns about the Markey proposal, including the idea of a cap on the fund.