UPTON SAYS 3G HEARING DELAY STEMS FROM UNPREPARED COMMERCE DEPT.

Congress has delayed hearings on 3G spectrum allocation because “Commerce Department is not ready” to unveil its game plan or make its case, House Telecom Subcommittee Chmn. Upton (R-Mich.) said May 11 at FCBA lunch in Washington. He said subcommittee had intended to hold hearings in April, but only Commerce official prepared for proceeding was Secy. Don Evans, “and he was out of the country.” Upton acknowledged necessity and difficulty of taking spectrum from Defense Dept. for commercial 3G use while simultaneously working to satisfy spectrum needs of military. Despite situation at Commerce Dept., he said he expects to begin hearings no later than mid-summer.

Executive memo signed by President Clinton last Oct. had set out deadlines for federal govt. making decisions on 3G allocations, with FCC overseeing evaluation of 2.5 GHz spectrum now occupied by Multipoint Distribution Service and Instructional TV Fixed services licensees. NTIA has purview over 1.7 GHz occupied by govt. users, mostly military. While federal govt. has met deadlines for interim and final 3G reports, speculation has centered in recent weeks on whether FCC’s July deadline for spectrum allocation decision could be met, in part because Bush administration has yet to name head of NTIA. July spectrum allocation decision was designed to meet congressional deadline of Sept. 30, 2002, for depositing proceeds in U.S. Treasury from 3G auction.

Upton also said he and House Commerce Committee Chmn. Tauzin (R-La.) “will spend a good number of hours” May 15 at FCC to assess what resources are needed to transform Commission’s equipment testing labs into “world-class” facilities. Subcommittee spokesman Mike Waldron later said Upton and Tauzin would meet at Commission hq with senior FCC staff and other employees to discuss status of Commission’s Md. testing facilities. “Obviously, it’s going to take some money” to upgrade FCC labs and retain technical staff in order to ensure “timely release” of telecom equipment to the market, Upton said. He anticipates that House Commerce, Justice, State and Judiciary Appropriations Subcommittee Chmn. Frank Wolf (R-Va.) “will be very helpful as we try to move this and [will] work in tandem” with subcommittee.