Satellite export reform measure by Cal. Reps. Rohrabacher (R) and Berman (D) has been attached as amendment to proposed Export Administration Act (HR-2581). Rohrabacher-Berman, which was introduced earlier this year (CD June 27 p5) as HR-1707, would return satellite export licensing to Commerce Dept. from State Dept., move supported by satellite and telecom industry groups. Measure would restore Commerce jurisdiction over processing satellite export applications while maintaining consultative role for intelligence community, Dept. of Defense, State Dept. House International Affairs Committee by voice vote approved amendment to Act, despite opposition from Chmn. Hyde (R-Ill.) and Rep. Bereuter (R-Neb.). Committee voted 26-7 late Aug. 1 to refer HR- 2581 to full House for consideration. Rohrabacher staffer said bill “most likely” would go to floor in Sept., following congressional summer recess, but exact timing had not been settled.
Domestic film and TV productions would be eligible for tax credits under bill introduced on Tues. that seeks to stem “runaway production,” flight of projects from U.S. to foreign locations. S-1278 by Sen. Lincoln (D-Ark.) would level playing field between U.S. and nations that entice companies with their own tax and other incentives. Following bill’s introduction, Hollywood producers and actors met in Washington to discuss impact on industry and explore possible govt. measures.
Nancy Victory, nominee for NTIA dir., received friendly reception before sparsely attended, brief Senate Commerce Committee nomination hearing Wed., despite recent discussions with govt. ethics officials about potential conflicts of interest. Only 3 Senators were in attendance: Dorgan (D-N.D.), Allen (R- Va.) and Burns (R-Mont.). Victory, until recently attorney with Wiley, Rein & Fielding, told panel that in recent weeks she has met with Office of Govt. Ethics and White House ethics experts to discuss concerns about potential conflicts of interest. Any stock in telecom companies that she had once owned she no longer owns, Victory said in response to questions, particularly from Dorgan. “To the extent that there may be other stocks to sell,” Victory said she will do so. Among stocks that Victory and her husband Michael Senkowski, also Wiley, Rein & Fielding attorney, have reportedly owned included shares in Verizon, Motorola and AT&T. Firms are among those with interest in outcome of 3rd generation wireless proceeding. Wall St. Journal reported Wed. that Senkowski has told govt. ethics officials that he wouldn’t represent companies that have business before NTIA as long as his wife holds post there. NTIA is overseeing 3G policy decisions regarding spectrum such as 1.7 GHz occupied by Dept. of Defense users. Victory told committee that in discussions with govt. ethics experts, they went through, in detail, her and her husband’s investments and personal relationships with industry companies. Victory said that White House ethics experts identified only one matter that she would have to contend with, ultra wideband (UWB) proceeding. Wiley, Rein & Fielding has represented UWB developer Time Domain at FCC in ongoing proceeding. Victory’s own past ties to wireless industry include work that she has done as outside counsel for PCIA. NTIA and FCC have been working through technical details of upcoming rulemaking on UWB, which, aside from 3G, is among biggest issues that NTIA faces. Despite many questions about ethics and her stance on issues such as 3G, all 3 Senators expressed intention to support her nomination. Dorgan asked her “are your intentions to be an activist over there” on broadcast ownership issues. He noted approvingly that former NTIA Dir. Larry Irving had taken up ownership issue every time it was raised by FCC. “I hope I have the opportunity to be an activist,” Victory said. However, she avoided answering question in any detail and instead laid out some of other top issues she expected to tackle as administrator: (1) Spectrum allocation, in which she expressed hope that she could work with industry to increase efficiency of spectrum use. (2) Broadband deployment. Victory said she believed in competition as required by Telecom Act. But regarding rural areas and various legislative proposals to hasten deployment in those areas, she said that may require “a little extra attention.” But she didn’t specify any particular legislative proposals. Regarding reallocation of military spectrum at 1.7 GHz for 3G, she said there are “tremendous emotions on all sides” and valid concerns, as well. Victory said her role would be to encourage dialog between parties and then assess “our most viable options in the time frames needed.” Burns asked her if she knew or could predict what wireless industry would look like in 5 years. Victory said if she knew, “I wouldn’t be vying in this position, I'd be investing in the stock market.”
Dept. of Defense, U.S. Air Force and wireless industry studies on using military spectrum for 3rd generation (3G) services “require further analysis and do not contain enough information to make reallocation decisions,” General Accounting Office (GAO) said this week in draft report. Since there’s no agreed-upon methodology to assess potential spectrum interference from 3G systems, each analysis has led to different conclusions about risks in vacating 1755-1850 MHz spectrum, currently reserved for armed forces. “With respect to inadequate information, all 3 analyses lacked essential information about industry plans for building and deploying [3G] systems,” GAO said in draft report to Sen. Inhofe (Okla.), ranking Republican on Armed Services Readiness & Management Support Subcommittee: “The lack of good information about future industry plans for geographic coverage and density of [3G] mobile wireless systems creates a high level of uncertainty about the levels of energy from these systems that can cause interference with satellite systems, degrading reliability of all 3 estimates.” GAO said that without reliable estimates, DoD couldn’t ensure that it would receive “fair reimbursement value” for vacating or sharing spectrum: “Ultimately, if the [DoD] is not fully reimbursed for the costs of reallocation, the government would be responsible for the funds needed to ensure that national defense is not degraded.” GAO recommended that DoD: (1) Carry out system-by-system analysis of current and future spectrum needs. (2) Prepare long-term spectrum plan. (3) Complete “technical, operational and cost assessments of satellites in 1755 to 1850 MHz band.” GAO recommended that Dept. of Commerce: (1) Incorporate sufficient time into new NTIA 3G spectrum plan to address DoD satellite operations. (2) Order NTIA to “identify comparable alternative spectrum. (3) Coordinate efforts with relevant Executive Branch agencies “to review existing national spectrum management plans and policies [that reflect] DoD international agreements and overseas requirements.”
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.
Dept. of Commerce will select 9 to 12 service providers and equipment manufacturers to participate in Internet & Telecom Trade Mission to Germany Nov. 4-9. International Trade Administration (ITA) Office of Information Technologies and Office of Telecom Technologies are teaming up to lead mission through Munich, Frankfurt and either Berlin or Hamburg. ITA said German telecom market, biggest in Europe and 3rd largest in world, “is expected to grow at its current rate of 5-10%.” It said “demand for Internet technologies and services is growing rapidly due to the liberalization of telecommunications services and the need for German businesses to leverage Internet technologies as they move into e-commerce.” Mission includes meeting industry representatives and govt. officials, advance publicity, advance and on-site staff support in Germany and Washington, D.C. Participation fee is $2,950, with deadline Sept. 7 -- Danielle Kriz, 202-482-0568.
Commerce Secy. Donald Evans told FCC Chmn. Powell that with “additional time” NTIA should work with Commission to develop “a new plan for the selection of 3G spectrum.” Evans wrote: “The aim will be to build upon the good work already done and to develop and execute the new plan as quickly as possible.” Evans said he was asking that the work be done in coordination with other Executive Branch agencies, including National Security Council, National Economic Council (NEC), Office of Management & Budget, Defense Dept. Evans said in letter that he was urging participants to consider ways to “achieve flexibility” on statutory auction dates if flexibility was needed to implement plan. Letter appeared to be response to Powell letter last month outlining Commission’s plans to delay spectrum allocation decision for 3G that had been due this month under timeline set in White House executive memorandum last fall (CD June 28 p4).
State Dept. can’t use budgeted funds to process satellite export licenses to China unless it gives 15 days’ notice to appropriations committees in both houses for each licensing action, Senate Appropriations Committee said last week. Under Commerce-Justice-State budget bill marked up July 19 by Senate panel, advance notice to both committees would be required before State could begin processing application for export of U.S.-made commercial satellites and satellite components.
Bush Administration is expected shortly to put forward delay in auction of 3rd generation wireless spectrum, Rep. Pickering (R- Miss.) told reporters Tues. Delay proposal, which has been backed by CTIA, wouldn’t affect other auction deadlines and would serve as “moratorium” to allow framework to be put in place to tackle issues on advanced wireless allocations, he said after Toffler Assoc. panel on spectrum allocation. FCC faces statutory deadline for putting proceeds from 3G auction into U.S. Treasury by Sept. 30, 2002. In June, FCC Chmn. Powell wrote to Commerce Secy. Donald Evans that more time was needed beyond July target date to make 3G spectrum allocation decision. House Commerce Committee hearing is planned in 2 weeks that will invite govt. policymakers on 3G, including top brass from Commerce, FCC, Defense Dept., NTIA. “We want to have all the stakeholders,” Pickering said. Meanwhile, DoD Acting Dir.-Spectrum Analysis & Management Rebecca Cowen-Hirscht repeated Pentagon’s continued hard line on relocation of military incumbents at 1.7 GHz, telling panel that more than money was needed to solve 3G problem.
State Dept.’s Diplomatic Telecom Service is among dozens of govt. agency divisions that faced delays in soliciting and awarding service contracts because of unpaid printing bills, U.S. Govt. Printing Office (GPO) announced. GPO said Fri. that it had suspended those units’ ability to publish contract solicitations and other announcements for failure to pay overdue printing bills: “We understand that the bills are overdue by at least 60 days. Recently, these offices were notified by phone and fax of their overdue bills. The [Commerce Business Daily] staff understands that the temporary suspension of service may interrupt the schedule for a contract action. However, the CBD program is funded through the printing fee, and all organizations must pay their bills accordingly.”