BURNS EYES ‘RADICAL’ APPROACH TO SPECTRUM ALLOCATION, AIDE SAYS
Incoming Senate Communications Subcommittee Chmn. Burns (R-Mont.) is considering “hybrid” approach to spectrum auctions that which would require participants to prove effectiveness of their business models before they could enter process, aide said Tues. in audioconference sponsored by Communications Daily’s parent Warren Communications News. Mike Rawson, Burns’ senior policy adviser, likened senator’s tentative approach to way that public lands were allocated in 1800s.
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“Senator Burns’ view is that the auction model is fundamentally broken,” Rawson said. “It is a model based on huge capital expenditures and the end result many times is bankruptcy and lack of services to consumers.” Solution is to either “dispense entirely” with auction model or take “some sort of hybrid approach where carriers are not in a position to raise these massive amounts of money.”
Idea Burns is studying Burns would change way that govt. raises money through auctions. Participants might make “initial capital outlay to show good faith” but govt. would benefit mainly by getting percent of gross revenue gained by spectrum winners, Rawson said. Burns’ spectrum reform idea is somewhat “radical” because it doesn’t view auctions “as a public resource by budgeteers for monetary purposes,” Rawson said. There might be bidding process but it wouldn’t be an “all-or-nothing” auction like present one, he said. He said Burns was particularly interested in system used in Hong Kong and had been meeting with officials from that area.
Burns plans to introduce spectrum reform bill early next year that also would reflect concerns raised by recent GAO report, Rawson said. Among those concerns were: (1) Division of authority between FCC and NTIA. (2) Inadequate U.S. preparation for World Radio Conference.
Rawson said spectrum reform was one of 3 issues at top of Burns’ agenda, although he emphasized agenda was preliminary and senator would make more formal announcement in mid-Jan. Other items at top of Burns’ agenda, Rawson said: (1) Reintroduction of a spamming bill with accompanying hearing. (2) E-911 legislation focusing on deployment of location-based information, perhaps through creation of “unified national” standards for funding. He said funding mechanisms now varied from state to state, resulting in disparities.
Al Mottur, Democratic senior counsel for Senate Communications Subcommittee, said Sen. Hollings (D-S.C.), outgoing Commerce Committee Chmn., expected “harmonious” turnover of reins and “has always worked well with Burns.” He said Hollings continued to see digital TV and spectrum reform as top issues. Important spectrum issues include making sure DoD is compensated for transferred spectrum, assuring that E-911 deadlines are met and number portability, Mottur said. He warned, however, that Burns’ spectrum reform idea, which he called “market-based approach,” should be approached cautiously: “We need to be careful before we scrap a system that is admittedly flawed for one [that is somewhat untried].” Mottur said there were “clearly problems but we need to ask if the alternative will help or hurt… A solely market-based solution is inefficient.”
Digital Content Key for Senate Judiciary
Technological and intellectual property (IP) matters will continue to be “top-tier issues” in Senate Judiciary Committee of the 108th Congress, Republican and Democratic staffers said in audioconference. Sen. Hatch (R-Utah), who will take over chairmanship of committee when Congress resumes, intends to focus -- either through oversight or, if necessary, legislation -- on protecting digital content online, Republican Chief Counsel Makan Delrahim said. It also is priority of Sen. Leahy (D-Vt.), Democrat Gen. Counsel Beryl Howell said.
FCC is seeking comment on whether it should mandate broadcast flag standards for TV manufacturers and others. Howell said agency had rightly posed questions in its rulemaking notice on whether it had jurisdiction to proceed and, if so, how it should handle issue. With no agreement in content community alone as to whether FCC should become involved -- let alone device makers and consumers -- committee is likely to monitor FCC’s actions, she said. Commission shouldn’t be in business of setting copyright policy, Delrahim said, but it does appear to have authority to require certain technologies to be placed in certain devices.
No one knows yet what correct balance of artists’, consumers’ and consumer electronics makers’ rights will be, Delrahim said, but issue will be on “fast track.” Committee also is likely to consider impact of IP protections here and abroad, he said. Delrahim said lawmakers would be looking at reauthorizing Satellite Home Viewers Act that expires in 2004. Hatch is also interested in issues affecting recording artists, such as royalty accounting and domain-name control, he said.
Letting govt. dictate which technologies are developed and used by consumers probably would stifle innovation, Delrahim said. However, he said, govt. has mandated devices in past and FCC already has approved all sorts of interoperability requirements.