KERRY COUNTS ON AUCTION REVENUE FROM DTV TRANSITION

The DTV transition should be speeded up, Sen. Kerry (D- Mass.) said in his presidential campaign materials. Documents on the Kerry-Edwards website said Kerry would use the DTV transition -- and the revenue generated from auction of the spectrum -- to invest in other priorities while cutting wasteful spending. Kerry also said the NTIA should be merged with the Technology Administration (TA), a move proposed by the Commerce Dept. last year but rejected by Congress.

The analog TV spectrum could bring the federal treasury $30-$60 billion in auction receipts, the documents estimated. The campaign said it would offer subsidies “to ensure all Americans can make the transition.” The documents include a chart of spending programs and savings that could be realized over the next 10 years. While the revenue from auctions is counted, there’s no estimate for subsidies, presumably including for converter boxes.

NAB said it was pleased that the Kerry campaign statement on DTV transition “recognizes the importance of preserving free over the air television.” The Kerry campaign said the transition “will ensure that Americans continue to enjoy free, over-the-air television.” The document is titled: “The Kerry-Edwards Plan to Keep Spending in Check While Investing in Priorities and Cutting Wasteful Spending.” (http://www.johnkerry.com/pdf/pr_2004_0803.pdf)

The proposal comes as Congress has been mulling the DTV transition, including signals from House Commerce Committee Chmn. Barton (R-Tex.) a transition deadline is needed. However, several congressional sources in both houses and parties have told us it’s difficult to gauge likely auction revenue and subsidy requirements. Barton recently said he believed there would be enough money for subsidies, but Rep. Boucher (D-Va.) said he doubted the auction would bring in significant revenue. At the recent House Commerce Committee hearing on DTV transition in Berlin, New America Foundation senior research fellow James Snider testified that the 108 MHz of spectrum could bring in up to $54 billion if all spectrum was auctioned, “an outcome we neither expect nor desire.” He said if only 1/3 of the spectrum was auctioned, receipts could be as little as $5 billion.

Kerry also proposed moving NTIA under the TA, an idea that hasn’t gathered much steam in Congress. Merging the agencies would “promote a more efficient and effective operation, while ensuring that we move forward to bridge the digital divide,” the campaign said. “With the convergence of telecommunications and technology, it is imperative that [NTIA] and [TA] operate on the same page at all times,” the campaign said. The Commerce Dept. pushed the idea in Congress, where it got a lukewarm reception from Senate Commerce Committee Chmn. McCain (R-Ariz.) and then House Commerce Committee Chmn. Tauzin (R-La.). There were concerns that moving NTIA under TA would shift oversight of spectrum management from the House Commerce Committee to the House Science Committee. Some Capitol Hill sources said there was concern that the move would be seen as deemphasizing spectrum management.

Kerry also proposed $2 billion in broadband tax credits and $22 billion in additional research funding. Kerry has touted the benefits of broadband service in rural communities. “As president, he will continue to be a champion of expanded access for rural communities, to bridge the digital divide and ensure that all Americans have access to the opportunities that come with cutting-edge technology,” said a campaign document on rural issues.