Rep. Towns (D-N.Y.) raised the possibility Wed. of setting timeli...

Trust (DOIT), including former FCC Chmn. Newton Minow, couldn’t address the desirability of setting timelines at a hearing of the House Commerce Telecom Subcommittee Wed. Minow said his understanding was that the FCC had set 2 auction dates but that further auctions would depend on how soon the Dept. of Defense vacated spectrum. Towns said setting a time for the auctions would help determine how much money would be available for the trust and sought the views of witnesses on whether congressional action would be desirable. Committee Chmn. Upton (R-Mich.) wanted to know from the witnesses whether they had any revenue projections from the sale of spectrum that would go into the trust. The only known figures were $5 billion from the 700 MHz auction and triple that amount from the 3G auction, he said. Minow said his projection of $20 billion was estimated to come over the years and only the interest from the fund was proposed to be used for technology and education programs. Backing the proposal for a trust fund, Upton said in today’s global marketplace, children and workers of all ages should be equipped with high-tech skills to remain competitive with the rest of the world’s work force. It was proposed that 30% of the proceeds from spectrum auctions be invested in DOIT for digital education and technology programs and for Telecom Development Fund (TDF) enhancement, a portion of the winning bidders’ down payments would be added to TDF’s existing funding for investment in new-technology ventures, he said. The proposals also call for “walling off” spectrum auction proceeds from the normal budgetary process, Upton said. However, while funding DOIT, the question of whether it would preclude funding for other programs such as veterans benefits, highway construction, homeland security and agriculture disaster support had to be considered, he said. Ranking member Markey (D-Mass.) said the issue was not merely one of “whether we can afford it.” Millions of jobs were being lost and companies were outsourcing software jobs to countries such as India and those were real challenges that needed to be tackled, he said. To a question on possible anticompetitive concerns relating to DOIT raised by Rep. Shimkus (R-Ill.), Minow said the “impressive” list of companies, especially technology firms, that had supported the DOIT proposal should set such concerns at rest. Businesses know that more education would bring them more success in the marketplace, he said. Former National Science Foundation Chmn. Eamon Kelly said DOIT would lead to increased competition in the same way that the National Science Foundation had stimulated competition and economic activity.