Obama Unveils American Jobs Act with Public Safety, Spectrum Provisions

On public safety, the jobs bill hews closely to S-911. The Obama bill reallocates the D-block to public safety, and provides $7 billion from auction proceeds to build and operate the network, as well as for related R&D. Funds would be available until fiscal-year 2016. Of that money, $200 million would go to a state and local grant program to plan for and implement the network. Another $6.5 billion would go to network construction, and $300 million would go to public safety communications R&D at the National Institute of Standards and Technology.

As in S-911, the bill would grant the license for the D-block to a newly established Public Safety Broadband Corporation. The Corporation would not be a federal government agency and would have a board of directors composed of federal and non-federal members. The Corporation would receive $50 million in initial funding, and it would be allowed to charge fees for the use of the public safety network to cover continuing operation of the network. The bill also allows the FCC to authorize broadband in spectrum currently used for narrowband and other land mobile radio technologies used by public safety. And it authorizes the FCC to adopt rules allowing public safety to roam and have priority access on commercial networks in emergencies.

The administration’s legislative proposal focuses very heavily as well on spectrum issues beyond the fate of the D-block. Many of the provisions pick up on requests made by the White House repeatedly in annual budgets sent to Congress, such as permanently extending the FCC’s auction authority otherwise set to expire next September.

The proposed act would give the FCC authority to hold incentive auctions of more than just broadcast spectrum, requiring the agency to auction the first 84 megahertz from various bands. It specifies that federal agencies would be fully reimbursed if they have to vacate spectrum through a Spectrum Relocation Fund (SRF). Up to 20 percent of the proceeds from an auction could be dedicated to pay for relocation costs. Under the legislation, after funds have been doled out to participants in voluntary incentive auctions, the FCC would be directed to deposit $1 billion in the relocation fund to cover repacking costs.

The act itself would require the FCC to conduct “in such combination as deemed appropriate by the Commission,” auctions of bands including 1915-1920 MHz, 1995-2000 MHz, 2020-2025 MHz, 2155-2175 MHz and 2175-2180 MHz. The act also would require auction of “at least 25 megahertz of spectrum between the frequencies of 1755 megahertz and 1850 megahertz.” The 1755-1780 MHz band is carriers’ number one target for repurposing for wireless broadband. The act would require the auctions to be complete by Jan. 31, 2016.

The language is very specific to allay fears of government agencies forced to move. “Agencies are permitted to acquire state of the art replacement systems under the current-law standard of comparable capability of systems,” according to an analysis released by the White House. It clarifies that the SRF “can be used to reimburse agencies for the cost of using commercial services, if these services are the most cost effective way of vacating Federal frequencies while maintaining agency missions.” It makes clear that funds would be available for up to 15 years to pay agency costs. Federal users would also be allowed to enter into sharing agreements with the approval of NTIA and the Office of Management and Budget.

The proposed bill also would give the FCC authority to charge spectrum licensees fees for spectrum they didn’t have to buy in an auction, likely to be a highly controversial proposal. “Fee authority will assist the FCC in managing the spectrum efficiently in cases in which auctions are prohibited or may not be an appropriate assignment tool but in which it is important to ensure that license holders pay the opportunity costs of their spectrum use, such as mobile satellite spectrum that is also licensed for ancillary terrestrial services,” the analysis said. The FCC would be required to reap various amounts in fees in each fiscal year from 2012 through 2021. The FCC would have to seek comments on a fee methodology, through a rulemaking. “The FCC is directed to develop a fee methodology consistent with the public interest, convenience, and necessity requirement, which is found throughout the Communications Act,” the document said.

"I am pleased to see that President Obama’s jobs plan includes proposals to invest in the wireless economy and provide first responders with the communications tools they need to do their jobs safely and effectively,” Rockefeller said. “Investment in this sector can create hundreds of thousands of jobs, help first responders and generate billions of dollars for deficit reduction. It’s a win-win-win proposal. And I look forward to working with my colleagues to make this happen.”