WASHINGTON-Sen. Ted Stevens (R-Alaska), chairman of the Senate Appropriations Committee, told the Federal Communications Commission recently that any plan to solve the public-safety interference problem in the 800 MHz band must be self financing, and if an allocation of replacement spectrum is necessary, an auction is unnecessary.
“Providing static free airwaves free of interference to first responders should be first and foremost in your deliberations. Any plan you approve to accomplish that goal must be self financing in terms of all costs of moving current occupants to new spectrum. As the chairman of the Senate Appropriations Committee, I can tell you that our committee does not have the ability to appropriate any funds for this purpose. Any proposal that seeks to divert auction proceeds from the treasury to cover the cost of relocation would be treated the same as direct spending from the treasury by the Senate Budget Committee. Both concepts would score equally against the budget. Whoever bears the cost must be willing to provide a guarantee that the necessary funds will be available even if they encounter financial difficulties or file bankruptcy,” wrote Stevens March 26 in a letter that was released Tuesday morning.
The letter was released by a public-relations firm supporting the Consensus Plan, although Stevens said specifically in his letter, “I do not have the technical background to judge the complex engineering issues in this case and do not take a position in favor of one side or the other.”
Perhaps making the Consensus Plan folks happy is language by Stevens saying that an auction would not be necessary.
“It has been suggested to me that rebanding could occur within the 800 MHz band without moving anyone to 1.9 (GHz). I hope your engineers will consider that option and determine whether that could accomplish the objective without causing interference. If it cannot, and Nextel Communications Inc. must give up its spectrum in the 700 and 800 (MHz) bands to eliminate interference to first responders, it must be given replacement spectrum elsewhere. As the author of the spectrum auction program, I do not believe an auction would be required in this instance,” said Stevens.
Opponents of the Consensus Plan have argued that giving Nextel spectrum in the 1.9 GHz band would go against the auction provisions of the Communications Act.
The FCC staff recommendation reportedly more closely tracks with the Consensus Plan developed by some public-safety advocacy groups, private-wireless entities and Nextel. The staff recommendation would require Nextel to pay more than the $850 million it said it would pay as part of the rebanding agreement. Nextel would pay all of the relocation costs plus the difference between that amount and “fair-market value” of 10 megahertz of spectrum it seeks in the 1.9 GHz band. This recommendation was delivered to the commissioners March 9. The FCC hopes to vote on rules at its April 15 meeting, but FCC Chairman Michael Powell told House appropriators late last month it might take a couple of months to come to resolution.
The Consensus Plan would shuffle the 800 MHz band to eliminate the current situation where public safety, private wireless, Nextel and cellular carriers are intermingled. In exchange for giving up spectrum in the 700 MHz, 800 MHz and 900 MHz bands and for paying to retune public safety and private wireless, Nextel has asked for 10 megahertz in the 1.9 GHz band. The staff proposal reportedly does not require Nextel to relinquish its 700 MHz and 900 MHz spectrum.
On the other side is the Balanced Approach Plan supported by the Cellular Telecommunications & Internet Association and the United Telecom Council. The Balanced Approach Plan calls for timely resolution of interference at the expense of the interferer, coupled with technical rules, notification and coordination procedures to prevent new interference.
