NUSSLE BILL WOULD REQUIRE AUCTION FOR NEXTEL SPECTRUM
House Budget Committee Chmn. Nussle (R-Ia.) introduced legislation Fri. that would “reaffirm the intent of Congress to use the auction process and competitive bidding for the grant of commercial spectrum,” his office said in a release. The bill would require the FCC to auction its spectrum allocations, including spectrum being sought by Nextel. However, Nussle’s spokesman said the bill isn’t out of concern for the Nextel situation. “The concern is that at the end of the day, the taxpayers should receive the benefit of this public resource,” he said.
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Nussle’s spokesman said he wanted the bill introduced before next week’s recess so staff would have time to evaluate the bill. Sources have said recently that FCC Chmn. Powell would likely support Nextel’s proposal for spectrum in the 1.9 GHz band (CD June 25 p5). There are no co-sponsors and the spokesman didn’t have any information about additional support. House Budget Committee ranking Democrat Spratt’s (S.C.) office didn’t return a call. The House Commerce Committee didn’t comment on the bill.
A release from Nussle’s office said the bill would clarify “when the auction requirement is applicable.” “At present, there is a disagreement over the proper statutory application of the Federal Communication Commission’s requirement to conduct spectrum auctions. There are some who suggest the current communications law is unclear as to when an auction is required,” Nussle’s office said. The office said the bill will “dispel any remaining misconceptions” about Congress’ intent to use the bidding process for spectrum management. “The competitive bidding process has already shown us that a fair market value is best attained through the use of competitive bidding,” Nussle said in the release.
Wireless carrier sources said they were still looking closely at the bill and would have to study the details before passing judgment. While aimed at Nextel, it could have much broader implications. One source said a final bill likely would look much different that what Nussle is proposing. A carrier source said some lobbyists worry the bill could complicate other spectrum swaps. Another source said Nussle’s intentions appear to be maximizing the value of spectrum. “Nussle cares that dollars that should be in the budget go to the federal Treasury,” the source said. “He feels passionate about it.” A carrier lobbyist said: “The real question is: What is the likelihood of this passing?”
“We commend Chmn. Nussle for setting forth a path for the FCC to fulfill its public mandate of managing scarce spectrum resources and guarding the public treasury,” a Verizon Wireless spokesman said. Steve Largent, pres. of CTIA, a former Republican colleague of Nussle in the House, has discussed spectrum legislation with him, CTIA confirmed.