Wireless CEOs plan to meet with Commerce Secy. Donald Evans April 24, apparent extension of dialog that he began with industry late last month on 3rd generation wireless issues. CTIA spokesman confirmed meeting, saying executives would meet with Evans one day before Wireless Issues Day on Capitol Hill April 25. Evans met with industry and other govt. officials late last month (CD March 31 p1), just before FCC and NTIA released separate reports on potential spectrum sharing and segmentation possibilities for advanced wireless services. Industry observers have said meeting with Evans last month signaled his interest in allaying fears over Dept. of Defense report released alongside NTIA document and indicating his direct interest in working on 3G spectrum solutions.
Panelists at Congressional Internet Caucus lunch Thurs. didn’t rule out need for congressional intervention of some type on pending Internet-capable 3rd generation wireless allocation decisions involving Dept. of Defense, NTIA and FCC. At lunch on Capitol Hill sponsored by advisory committee to caucus, several panelists suggested Congress could have role to play, specifically on mandatory auction date for certain bands now under consideration for 3G allocation. FCC is overseeing decisions on 2.5 GHz spectrum now occupied by Multipoint Distribution Service (MDS) and Instructional TV Fixed Service licensees and NTIA has purview over 1.7 GHz band occupied by govt. users, mostly military systems. Under Executive Memorandum signed by President Clinton last Oct., FCC would have to make spectrum allocation decision in July to meet congressional deadline of Sept. 30, 2002, for depositing proceeds in U.S. Treasury from auction of certain bands. “I hope that Congress recognizes that we may have to slow down just a little to speed up and get the right solution,” said Steven Berry, CTIA senior vp-govt. affairs. Issue of making sure there’s enough time for decisions is particularly important given bifurcation of 3G decision-making authority between NTIA and FCC in that area. “That’s where Congress has a role,” Berry said. FCC Wireless Bureau Chief Thomas Sugrue described potential for reaching solution on vacating incumbents from one of existing bands under consideration, although he said logistics for how some of that would happen were less clear-cut. “We would not resist and would in fact welcome some help from our friends in Congress to help make this happen,” Sugrue said. Panel was moderated by Washington attorney Gerry Waldron, with other speakers including NTIA’s Joseph Gattuso, Motorola Vp-Telecom Strategy & Regulation Richard Barth, Pegasus Communications Vp Cheryl Crate and consultant Leslie Harris for WEBNow, coalition representing ITFS licensees. Several panelists cited extent to which reimbursement, which is required for moving federal licensees from incumbent spectrum, is likely to make relocation decisions somewhat more tenable. “This is an area where the spectrum is potentially so valuable to 3G services, there should be enough money I think to make some of this work out,” Sugrue said. “The money makes things not a zero-sum game anymore. Otherwise, we're taking from DoD and giving it here, or we're taking from MMDS and giving it there and they move and someone else wins and that’s a hard way to get anybody to agree.” NTIA’s Gattuso said the NTIA report released Fri. on possibilities for 3G spectrum sharing and segmentation in 1.7 GHz left open options. “We have seen a lot of interest by the Secretary of Commerce and the Administration in general to look at this issue at the highest levels of government and to work with industry to look at our options,” he said. Harris stressed that ITFS licensees were in thick of deployment plans for rolling out wireless broadband services, including those covering “congressional” priorities of distance learning and service to typically underserved inner city and rural areas. “There is more at stake here than can you move incumbents,” Harris said. “There’s a real opportunity here -- DoD needs advanced, digital highly encrypted telecommunications capabilities for the 21st century,” Berry said, reiterating CTIA’s view that DoD spectrum would be best for 3G. “Right now they're in analog systems,” he said of Defense communications. He cited ITFS estimates for relocating incumbents of up to $30 billion, with DoD estimates closer to $4 billion. “Quite frankly I was surprised by the dollar number that DoD gave to NTIA."
Don’t expect FCC to be as eager to place issue-oriented conditions on merging companies as past Commissions, FCC Chmn. Powell told reporters in news conference Thurs. on telecom issues. He said FCC votes depended on all 5 commissioners but he wouldn’t be pushing for kind of conditions that were imposed on SBC- Ameritech, Bell Atlantic-GTE and other mergers. Powell held 2 news conferences for trade reporters Thurs., answering questions on video issues in morning session (see separate story) and telecom questions in afternoon.
Correction: Asst. Secy. of Commerce for Technology Policy oversees Dept. of Commerce’s Office of Technology Policy but not National Institute of Standards & Technology or National Technical Information Service (CD April 4 p5).
Cisco lobbyist Bruce Mehlman has been nominated to be Asst. Secy. of Commerce for Technology Policy, White House announced Tues. Mehlman, who was on President Bush’s transition team, joined Cisco in 1999 as telecom policy counsel. Before that, he was gen. counsel of House Republican Conference, working on Y2K and other high-tech issues. He also was legal counsel to National Republican Congressional Committee. Mehlman appears to be well- versed in telecom policy and last year gave talk on high-tech issues such as 3G wireless services at FCBA lunch at Wiley, Rein & Fielding offices. In new position, he would oversee Commerce Dept.’s Office of Technology Policy, National Institute of Standards & Technology, National Technical Information Service.
Commerce Dept. is seeking comment on Intelsat privatization that’s planned to be completed by July 18. Deadline for comments is May 3.
Publishers who own TV stations were prime movers behind affiliates’ petition to FCC calling for inquiry into Big 4 TV networks “illegal” activities (CD March 9 p2), NBC Pres. Robert Wright said at “Big Picture” conference in N.Y. He charged NAB (which isn’t party to affiliates’ FCC filing) had been “captured” by “publishers” who own TV stations. “They are the drivers of NAB,” Wright told us later. Affiliates, he said, want their relationships with Big 4 networks to return to “gold standard” days of yore but NBC doesn’t have same assets (with several cable networks now) and doesn’t operate same way it did 20 years ago. News Corp. Pres. Peter Chernin called affiliates’ filing “clearly unfortunate” but had no comment on Wright’s statement.
PTV stations will commit one multicast digital channel for formal education services in exchange of greater federal funding for digital conversion under new strategy approved by APTS board April 1. PTV stations would offer equivalent of one multicast digital channel -- average data rate of 4.5 Mbps -- for formal educational services such as K-12, college telecourses and workforce training. They will also commit to providing broadband data services for educational purposes and educate viewers about benefits of digital broadcasting services. In exchange for wireless broadband digital capacity valued at $2.4 billion year, APTS will seek federal funding of $699 million over 5 years out of total estimated transition cost of $1.8 billion. As part of deal, PTV stations also would get cable carriage of PTV signals during transition and carriage of all DTV multicast streams. Calling it “2-pot” strategy, new APTS Pres. John Lawson said it consisted of getting “what you can out of PTFP [Public Telecom Facilities Program] but also getting what you can out of the CPB appropriations.” Explaining rationale behind move, Lawson told board that problem with PTFP funding was that “committee that funds Dept. of Commerce that PTFP is now under never has the kind of funding final authority that the committee that funds CPB has. We have gone to Capitol Hill 3 times now without success in getting an authorization for more funds.” He said among few areas of growth in Bush Administration budget request to Congress was education funding, which is under Labor-HHS subcommittees. “That where the money is.” Saying that APTS needed to calibrate its strategy to reflect interests in Congress, he said one major area of interest was use of technology for teaching or learning. “There is a major ramp-up in federal outlays for education technologies,” he said.
Rep. Berman (D-Cal.) is working on 2nd draft of bill that would return satellite export licensing jurisdiction to Commerce Dept. from State Dept. and expects to introduce legislation after April recess, staffer said. Revision reportedly bolsters security protections found in first draft, though staffer wouldn’t elaborate. But he acknowledged that initial proposal to incorporate State and Defense Dept. special review process for satellite exports to China remains integral part of bill. Rep. Cox (R-Cal.), staunch national security proponent, recently said (CD March 7 p4) he'd oppose Berman bill. Berman aide said he was hopeful Cox would reconsider after reviewing revised draft. Bill has several cosponsors and Berman expects more to come on board, particularly other members from Cal. who are concerned about impact of slow State Dept. export license review and its negative impact on state’s high tech industry, according to staffer.
NTIA and FCC released final reports Fri. providing details on challenges to sharing, segmenting or clearing Dept. of Defense- occupied bands and MMDS and ITFS spectrum, setting stage for what some see as need for high-level 3-way talks on possible compromise among FCC, Pentagon and Commerce Dept. DoD evaluation, appendix to NTIA report, said terrestrial military systems couldn’t vacate 1.7 GHz until 2010 and legacy space systems would need access until 2017, dates much later than timelines in federal 3G studies. Still, several industry sources said they were heartened by what they called realistic relocation cost estimates that NTIA provided for 3 options, which range from $2.2 billion to $4.5 billion. NTIA report laid out 3 options for band sharing or segmentation, including recently emerged alternative that involves out-of-band pairing and phased-in migration of incumbents. Despite alternatives, “this does not necessarily mean that the government band is the right choice for 3G,” Naval Rear Adm. Robert Nutwell said at NTIA briefing. He called on wireless industry to make “better case” for 3G spectrum needs.