Last week’s terrorist attacks appear to have dimmed prospects, for now, of wireless industry’s obtaining quick decision on relocating military spectrum users for 3G wireless. While insiders continue to stress need for additional spectrum for advanced wireless services, several told us that if nothing else, logistics of defense agencies focusing on response to last week’s attacks meant that Pentagon policymakers attention was focused elsewhere. On other hand, several wireless industry officials said key role played by mobile communications in aftermath of attacks, including final calls from passengers on hijacked planes, underscored very publicly importance of adequate wireless coverage.
House adjourned Wed. without voting on Dept. of Defense (DoD) authorization bill that, if amended, would have guaranteed that Pentagon was adequately reimbursed for vacating spectrum in 1710- 1850 MHz band. Defense funding bill (HR-2586) had been tentatively scheduled for debate on House floor, but business was limited to introduction of resolution by House Majority Leader Armey (R-Tex.) and Democratic Leader Gephardt (Mo.) to condemn this week’s terrorist attacks. Full House agreed to adjourn for day “out of respect to the victims.” Armey earlier in week had planned for 2nd possible day of debate on bill today (Thurs.), but staffer said it wasn’t known when HR-2586 would be placed back on calendar.
Anyone doing business with FCC will have to obtain ID number -- called FCC registration number (FRN) -- starting Dec. 3. Ten- digit FRN will have to be provided any time individual or organization conducts transaction with agency involving payment of money. That would include filing license applications, tariff documents and other submissions requiring fee payment. It also includes payments made to participate in spectrum auctions and contributions to universal service fund. Organizations permitted to file tariffs without fees still would have to get FRN, FCC said. Commission said it taking action “to better manage our financial systems,” improve efficiency of agency processes and improve compliance with govt. requirements. For information: Click CORES link at www.fcc.gov. CORES is Commission Registration System.
White House is sticking to revised budget projections, despite Congressional Budget Office (CBO) warning that estimates of FCC spectrum auction proceeds “continue to be volatile.” CBO this week made $6 billion auction-related reduction in previous FY 2002 govt. revenue estimates, part of agency’s overall estimate “that this year’s surplus will be $153 billion -- $122 billion less than it projected just a few months ago.” However, Office of Management & Budget (OMB) spokeswoman reiterated that Bush Administration wouldn’t change budget in midyear based on chance that Supreme Court would overturn U.S. Appeals Court, D.C., remand of FCC’s cancellation of NextWave licenses for missed payment (CD Aug 24 p2).
Estimated receipts from FCC spectrum auctions “are projected to be $1.2 billion lower in 2002 and $1 billion higher in 2004” than it had estimated in April, Office of Management & Budget (OMB) said. OMB, which released midsession federal spending report Wed., said revised estimate was part of several “technical changes” in April projections. Change in projected spectrum auction receipts “reflects regulatory actions taken by [FCC], which shifts the expected receipts from two major auctions.” OMB couldn’t tell us immediately what FCC actions report involved. OMB also said universal service fund spending estimates for fiscal year 2001 had declined by $1.1 billion. It said change in projected universal service spending reflected “decrease in expected collections in various programs and a slower rate of spending from obligated balances within the schools and libraries program than had been previously assumed.”
Senate Commerce Committee’s communications subcommittee took first run on Senate side Tues. on difficult spectrum allocations decisions that remain unresolved for 3rd generation wireless. Panel members questioned govt. officials closely on how efficiently both military and commercial operators are using existing spectrum allocations. Echoing Pentagon concerns raised at House hearing last week (CD July 25 p1), Linton Wells, acting asst. secy. of defense for command, control, communications and intelligence, continued to outline obstacles to relocation of military users before 2010 for terrestrial systems and 2017 for satellite systems. Without choosing sides between whether incumbent commercial or military users should be moved, Subcommittee Chmn. Inouye (D-Hawaii) stressed need for compromise. “If the only option is to relocate the Defense Department, we must find comparable spectrum, develop a migration time frame that allows the Defense Department to maintain its operations as it vacates the spectrum and ensure that the Department’s costs are reimbursed,” Inouye said. Like other panel members, he emphasized need to reach solution that wouldn’t degrade military readiness.
Members of House Telecom Subcommittee urged Defense Dept. and wireless industry Tues. to work out differences on 3rd generation wireless spectrum, although military top brass continued to raise red flags on relocation, reimbursement, timing. Verizon Wireless CEO Denny Strigl used hearing to call on Congress to weigh in on settlement solution for C-block spectrum returned by U.S. Appeals Court, D.C., to NextWave. On 3G front, Rep. Pickering (R-Miss.) said he planned to introduce bill “as soon as possible,” quipping that all spectrum was “on the table” except for bands occupied by MMDS and Instructional TV Fixed Services licensees. Subcommittee Chmn. Upton (R-Mich.) said he foresaw markup in Oct. time frame, despite differences that appeared to be keeping cellular operators and Pentagon apart. While much of panel appeared to be interested in finding ways to use DoD-occupied spectrum at 1.7 GHz for mobile Internet applications, several members questioned impact on national security and continuing military operations. Rep. Harman (D- Cal.), addressing Pentagon “skepticism” about ability of military to move, said, “I would not agree that the right answer is ‘We just can’t.'” She said: “I would suggest that more attention needs to be paid to how to make that transition effective.” Nearly 3-hour hearing, first this year on 3G, also focused on Enhanced 911 progress and need for lifting spectrum cap.
Corrections: FCC Chmn. Michael Powell told House Appropriations Subcommittee he “takes seriously that Congress wants” Commission to complete Northpoint spectrum-sharing proceeding by end of year, possibly as early as fall (CD May 23 p 7). We referred incorrectly to ultra-wideband proceeding in Powell’s 5 reasons why “more specific time frame” wasn’t possible. Reference to possible spectrum auctions involved Northpoint, but not UWB, proceeding… In our interview with FCC Chmn. Powell (CD May 23 p4), one of his comments was transcribed erroneously. In answer to question whether some companies depended too much on arbitrage, he said FCC now had to take tough actions on issues such as CLEC access charges and colocation remand. Transcript said “collect access charges and call locations remand.”
CTIA asked President Bush to give Commerce Secy. Donald Evans “sufficient time” to complete 3rd-generation wireless spectrum assessment by delaying pending auctions. Govt. has been working toward July 31 deadline that FCC faces for spectrum allocation decision under timelines set out by President Clinton in executive memorandum last Oct. Request to Bush came as speculation has grown that Commerce Dept. wouldn’t necessarily be prepared to craft 3G decisions within tight schedule of executive memorandum anyway. Last week, House Telecom Subcommittee Chmn. Upton (R- Mich.) said panel’s hearings on issue were delayed because department wasn’t ready to unveil its “game plan” (CD May 14 p1). “Previous Administrations ignored this [3G] issue until it finally reached crisis proportions, leaving your Administration to inherit the crisis and make the tough decisions,” CTIA wrote Bush.
FCC unanimously approved Deutsche Telekom’s (DT) merger with VoiceStream and Powertel, imposing no special conditions on $34 billion deal and provoking renewed commitment from Sen. Hollings (D-S.C.) to seek restrictions on foreign govt. ownership in U.S. telecom companies. FCC adopted order 4-0, with Comr. Furchtgott- Roth dissenting in part on separate deal on national security issues between federal agencies and companies. Order, approved Tues., is expected to be released as early as today (Thurs.) Commission said in news release it found DT would “have neither the incentive nor the ability to engage in unfair competition, specifically predatory pricing, in the U.S. domestic mobile telephony market.”