Commerce Department Considering Weighing In Against Free Broadband Plan
The Commerce Department is once again weighing a letter opposing FCC Chairman Kevin Martin’s proposal for free, national wireless broadband in the AWS-3 spectrum band, we've learned. The department had backed down from an earlier move to release a letter opposing the free broadband proposal (CD July 16 p1), but the letter is again under review following remarks by Martin indicating that proposal is still moving forward.
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Some Republicans, including Commerce Secretary Carlos Gutierrez, view the proposal as not being consistent with the Bush administration’s free market policies. NTIA acting Administrator Meredith Baker has also had concerns she has shared with the secretary, according to government and industry sources. Bush Chief of Staff Josh Bolton, one of those reviewing the plan, found it problematic. House Republicans Joe Barton of Texas and Cliff Stearns of Florida also oppose the plan.
During the summer, the letter had been hung up, due in the part to the efforts of presidential assistant Keith Hennessey, who is considered to be close to Martin, sources say. Administration officials thought Martin was no longer pursuing the free broadband proposal. But in August, in an interview with USA Today, Martin indicated the proposal was alive. That was followed this week by similar comments Martin made to the Senate Commerce Committee during a hearing on broadband.
“Martin’s comments set off red flags,” one industry official said. “All of a sudden, people [in the administration] were saying this is still alive, we still need to do something.” Martin said in July auction of the spectrum is no longer likely this year (CD July 14 p1), but he left open the possibility he would ask the FCC to approve rules for an auction.
Commissioner Jonathan Adelstein told us he wasn’t sure about when Martin would seek a vote on AWS-3 auction rules. But he said he was waiting for Office of Engineering and Testing analysis of recent AWS-3 interference testing at the Boeing Lab in Seattle. “It’s really the chairman’s call,” Adelstein said. “I think we've got to move as soon as we can but not precipitously. We're just evaluating now what we learned in testing in Seattle… Those test results are kind of crucial. We don’t have the final analysis yet as to what that means.”
OET reported test results it had observed, but did not draw conclusions. OET Chief Julius Knapp indicated Thursday OET likely won’t do so publicly but will discuss the results with the various commissioners and their staff. “I think there’s an ongoing dialogue on those results on those results… and what the commission ought to do,” he said.
Both sides have put their spin on the test results. “The testing results provided were completely consistent with the test results previously provided by T-Mobile USA,” T- Mobile, CTIA, MetroPCS, Nokia and AT&T said in a Sept. 10 letter. M2Z is expected to respond in more detail next week.