WASHINGTON-Federal Communications Commission Chairman Michael Powell told Congress he is opposed to an amendment in a spending bill that would exempt from spectrum auction an application of a wireless startup with strong political connections to provide digital broadcast service to rural areas using hybrid terrestrial-satellite technology.
“Issuing a license for free deprives the taxpayers of the revenue they would receive if auctioned instead . Congress’s determination that an auction is the best licensing method not only to ensure that the public receives maximum value of the spectrum, but also to decide which party would put the spectrum to its best use, has proven correct,” said Powell in an Oct. 7 letter to congressional appropriators.
The rider to the 2004 spending bill for the FCC and departments of Commerce, State and Justice would benefit Northpoint Technologies Inc. A similar amendment is attached to the Senate spectrum relocation bill, which is key to freeing Pentagon spectrum for third-generation wireless systems. The Bush administration has issued a veto threat if the Northpoint amendment is not stripped from the latter measure.
Powell’s position on the Northpoint amendment comes as the mobile-phone industry battles the FCC in federal appeals court over the agency’s decision to allow mobile satellite service firms-which received licenses free-to offer terrestrial services.
The wireless industry makes essentially the same arguments as Powell in his Northpoint letter to Capitol Hill, contending MSS frequencies used for terrestrial services should be subject to spectrum auction and to do otherwise constitutes a huge corporate giveaway at the expense of U.S. taxpayers.
