Dingell, Markey Give Nod to Frontline Proposal

Not all agreed, with differences more along rural-urban than party lines. Telecom Subcommittee Ranking Member Upton (R-Mich.) took a dim view of Frontline’s and some other proposals, calling them bids to “rig the auction.” The auction should run as arranged, with safety community players and winners negotiating on network options, Upton said. Complex proposals combining a first responder network with commercial interests could be difficult to manage given the auction’s tight timeframe, Upton said.

But Rep. Pickering (R-Miss.) expressed strong interest in the Frontline and M2Z Network proposals, saying they would let small to mid-size firms participate in the auction. Pickering had a key role in the Republican-led team responsible for the committee legislation leading to the framework for the 700 MHz auction. “It’s of critical importance that we get this right,” he said: “It’s more dangerous not to have a public safety] network than to worry about the complexities of a particular auction proposal.”

Pickering is among those wanting the FCC to keep large companies from dominating the auction. The FCC appears to be leaning toward proposals favoring urban areas, he said, urging the Commission learn from advanced wireless services auction. That process took a fair approach and attracted a balance of different-sized companies, he said.

“The FCC is right to try and chart a course” giving clear directions on how the auction will proceed, said Rep. Harman (D-Cal.), a longtime safety advocate. Harman wants Congress to help public safety build a nationwide interoperable network, not allow what he calls an existing patchwork of smaller networks continue to try to meet first responders’ needs. Like most members, she said she will be scrutinizing the FCC’s decision at its April 25 meeting.

“If we rig the auction and it goes wrong, wouldn’t public safety suffer?” Upton asked panelists. Former NTIA Dir. Michael Gallagher said that “would be a failure on a national level we cannot afford.” He urged the FCC not to engage in a “risky venture” potentially endangering use of the spectrum and taking a long time to resolve should any of the business proposals fail.

Frontline won’t fail, since money is being paid in advance, insuring its soundness, said Chmn. Janice Obuchowski. “The Frontline proposal is a bipartisan proposal,” she said, adding that it would open spectrum to competitors, alleviating the problem of “catering to entrenched competitors” buying and warehousing spectrum. She specifically criticized Verizon’s proposal for not permitting buildout of an interoperable system and risking continued wireless market consolidation.

The Frontline proposal could delay the auction and the transition to digital TV, Gallagher said. “Anything short of a clear, transparent, straightforward auction will leave us short of our policy goal,” he said, reprising Upton’s suggestion that safety officials negotiate with auction winners on a plan for a nationwide network. Gallagher said he would advance some plans for helping public safety fund such a network.

The auction must not be delayed, Upton said: “It’s not clear why the government should be hardwiring particular business models into the auction rules at the outset.” But Committee Ranking Member Barton (R-Tex.) was more circumspect, questioning panelists -- minus Obuchowski -- on the Frontline proposal’s validity. Panelists gave the proposal mixed reviews, with CellularSouth endorsing.

Markey suggested in his questioning that Gallagher’s opinions may reflect the view of his firm’s clients, which include Verizon, Qwest and other wireless companies. Markey asked if any of those companies had funded a recent study by Gallagher of the auction. Gallagher, a partner with Perkins Coie, said no company client wrote a check directly for the study. Markey said he wanted the record to reflect that the firm’s clients include large telecom interests.

It’s time to “cut the rhetoric and do the right thing,” said Rep. Stupak (D-Mich.), a longtime public safety advocate. Congress has done “very little” over the past 12 years to solve the problem, Stupak said. One step would be to make the public safety interoperability grant program permanent and fund it through auction proceeds.