FIXING SPECTRUM POLICY IS AMONG POWELL'S TOP PRIORITIES

LAS VEGAS -- Fixing FCC’s “broken” spectrum policies is among agency’s top priorities, FCC Chmn. Powell said Fri. at Consumer Electronics Show (CES) here, and unlicensed spectrum bands are providing some of “lessons” directing Commission action. He also said Commission’s quick action Fri. on cable compatibility (see item elsewhere in issue) showed DTV remained priority, but he suggested he would be cautious about easing broadcaster deadlines for DTV transition.

It isn’t FCC’s fault that spectrum policy is broken, Powell said in Q&A session with CEA Pres. Gary Shapiro: “Technology has superseded the regulatory model.” As result, he said, FCC can’t get spectrum to “its highest and best uses fast enough.” He said, for example, agency’s HDTV spectrum policy “made a lot of sense at the time” but didn’t foresee impact of new wireless services, ultrawideband or effects of Sept. 11.

If FCC makes mistake “it can take years” to get spectrum back and reallocate it, Powell said, and that’s too slow for rapidly changing technologies and business plans. As result, he said, FCC decided to “start from scratch” on spectrum policy, with “nothing sacrosanct.” Plan, he said, is to “borrow the best lessons” from unlicensed spectrum and other successful areas.

Result, Powell said, must be “dramatic change” in spectrum regulation because “there’s not a lot spectrum left in the closet” to meet all new demands. Referring to such things as requiring equipment using new spectrum to be able to handle certain amount of interference, Powell said new technologies “have got to be a lot more robust” in terms of sharing spectrum, “harnessing the benefits of technology.”

Powell said he was “completely sold on” increasing use of unlicensed spectrum, which he said once was considered “junk spectrum.” Nobody foresaw “robust innovation” in using that spectrum, he said, and it validated idea of “giving them the raw material and the opportunity to play, within some protective parameters.” Powell also said that “I fought tooth and nail” for ultrawideband.

HDTV transition is “finally going pretty well,” Powell said. He expressed particular pleasure with consumer electronics-cable compatibility agreement, calling it “major breakthrough” that would speed transition. FCC rulemaking just seeks comments on agreement, but Powell said he hoped “within a few short months” to begin drafting final rules.

It’s “not exactly clear” how long it will take to draft and finalize compatibility rules, Powell said, saying that would depend partly on clarity of industry comments in rulemaking, but he said finalizing it was “one of my highest priorities.” He noted rulemakings normally were 6-8-month process, but said it could be faster.

In response to Shapiro query about broadcaster proposals to delay some HDTV deadlines such as going to full power and expanding HDTV programming, Powell said “deadlines are set for a purpose. I am always extremely skeptical about delaying them, but not to the point of irrationality.” He said HDTV had been “a very dynamic process,” but it’s “important to the public and to the industry to get the transition accelerated.”

Govt. has been engaged in DTV transition process “in a much more constructive way,” Powell said, but process works only if “everyone gives a little and gets a little.” FCC will step in if necessary, he said, including “cajoling, and sometimes coercion.”

Powell remains reluctant to impose dual must-carry on broadcasters, he said in response to Shapiro question. He said he hoped industries came to agreement, but he had “a lot of doubt about the intrusiveness” of dual must-carry, partly for constitutional reasons. He said there were “a whole lot of things that will contribute to the success of the DTV transition” before FCC had to address dual must-carry.

Asked whether govt. ever would get broadcast spectrum back, Powell said recovering spectrum was only one reason to speed DTV transition -- there was public interest in DTV itself as well. He said 2006 date for recovering spectrum “never was real” and all that mattered was 85% penetration of DTV into households: “I don’t know how long that will take.” He suggested, however, that consumers were “starting to get excited” about DTV and “may adopt it faster than we thought.” If not, he said, Congress may have to step in on deadline issue.

Congress also may have to step in to define FCC role in intellectual property issues such as broadcast flag, Powell said: “The FCC is not the copyright office.” Intellectual property is Achilles heel of overall digital transition, he said, and FCC is “groping its way through what role it can play.” Commission isn’t sure what timetable will be for decision on issues such as broadcast flag, Powell said, and whatever it decides certainly will face court review.

FCC’s 2nd major priority is boosting broadband, Powell said, and action is likely within few weeks to few months on broadband-related issues such as UNE-P. He said broadband was important because it “holds the promise of dramatically stimulating the economy and improving peoples’ lives.” He said FCC had 5 or more major proceedings under way that would have big impact on broadband deployment.

Everyone agrees broadband should be stimulated, Powell said, but working out details on issues such as UNE-P has been “extraordinarily contentious” and it’s “very difficult to speculate what the final outcome will be.” Overall, he predicted, “a year from now you will be surprised with the number and depth of [broadband] proceeding that will have been completed.”

On other issues, Powell said: (1) He personally believes wireless number portability is “very pro-consumer.” (2) EchoStar takeover of DirecTV had to be decided based on snapshot of situation then, but he didn’t indicate situation couldn’t change in future: “Technology has a way of making liars of people.” (3) FCC will have role in intelligent transportation systems, notably in providing spectrum: “This is a very interesting area.” (4) Everyone seems to agree there’s value in providing competitive access to incumbent systems such as cable modems, but “the important issue is what terms and conditions.” He called working that out “hideous” problem and said FCC probably was wise few years ago not to impose outside access on cable modems: “Now our policy is vigilance.” (5) Powell’s 3rd major priority is “continuing stewardship of competition policy,” followed by DTV and homeland security.

(6) Powell believes his overall legacy will be judged on how well FCC handles overall “digital migration.” He said digital had been “a technological revolution” that had forced FCC to migrate virtually all of its policies. (7) Asked yet again about his post-FCC plans, Powell said he never looked more than year into future, but said: “I absolutely love public service and the U.S.A.”