Bush proposes spectrum fees on ATC networks

The Bush administration proposed imposing spectrum fees on the cellular element of hybrid mobile satellite service networks as part of s $3.1 trillion budget sent to Congress.
MSS operators are banking on the ancillary terrestrial component, or ATC, to revive an industry sector that has struggled in the past decade. Policymakers want mobile satellite networks part of the nation’s telecom infrastructure in the aftermath of communications failures following the Sept. 2001, terrorist attacks and Hurricane Katrina. In the past, mobile-phone carriers have complained that MSS-ATC licensees should have to compensate the federal government for use of satellite spectrum being dedicated for land-based wireless services. Cellphone carriers have had to acquire spectrum through auctions since 1993. Levying spectrum license fees on ATC use of MSS spectrum could raise $1.2 billion for the U. S. Treasury through 2018, according to the Bush spending blueprint.
The Bush budget package also seeks congressional approval to assess spectrum license fees across the board, a request made in many previous budget proposals that has never got serious traction. The White House also wants the authority to auction domestic satellite licenses, which to date have been assigned without charge.
The administration is seeking permanent spectrum auction authority. The Federal Communications Commission’s existing auction power expires in September 2011. The proposed budget for the FCC in fiscal 2009 is $338.9 million.