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Powell Moves Quickly to Initiate AWS Auction

Chmn. Powell formally asked the NTIA on Wed. to begin the process that will lead to an auction of 90 MHz of spectrum for advanced wireless services (AWS) in June 2006. Powell also announced the auction of other spectrum at 1432- 1435 MHz in July or Aug. of the same year. Wireless carriers have called on the FCC to act quickly to initiate the AWS auction and were pleased with the Powell letter.

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“In Nov. 2003, the Commission adopted service rules for the… bands, including provisions for licensing and competitive bidding,” the 2-page letter said: “While several petitions for reconsideration have been filed in the proceeding, we expect to resolve those in the near future. Accordingly, licenses for these bands will also be ready to be auctioned, and the Commission plans to commence such auction in June 2006.”

President Bush signed legislation creating the trust fund (HR-5419) Dec. 23 after the measure passed the Senate in early Dec. during the lame-duck session. Under the procedure in the legislation, the govt. has 12 months to calculate costs and set up a schedule for clearing the spectrum and must notify the FCC 6 months before an auction. Sending the letter starts the process. Powell wanted to take the step quickly to signal the FCC’s desire to have the auction move forward, sources said. The June date indicates the FCC wanted to schedule the auction as early as permissible.

NTIA will work with the Dept. of Defense and other govt. users to clear the bottom half of the allocation at 1710-1755 MHz. The rest of the spectrum to be cleared, 2110-2155, is commercial spectrum that the FCC will clear through more conventional means, and wasn’t covered in the legislation. DoD officials, who lobbied for the bill, have indicated they have made substantial progress toward clearing the band.

“I am very pleased that the President has signed this important legislation,” Powell said in a statement that accompanied the letter to NTIA. “The spectrum relocation fund mechanism that Congress has established will result in successful auctions, smooth relocation of important government operations and, most important, competitive high quality communications services being provided to American consumers.” Powell also thanked NTIA Dir. Michael Gallagher, who he said, “spearheaded the Administration’s successful effort to win passage” of the legislation.

Bobby Franklin, CTIA vp-govt. affairs, said wireless carriers are pleased Powell moved quickly after Bush signed the legislation. “We're obviously pleased that efforts are underway to get this spectrum into commercial usage sooner rather than later so that the innovation this industry continues to provide makes it to consumers that much quicker,” Franklin told us.