Spectrum Agreement Still Possible Amid Capitol Hill Spat
It seems unlikely spectrum negotiations are finished between the House and Senate Commerce committees, despite frustrations voiced by each side, multiple telecom industry lobbyists said Thursday. But governance of the public safety network continues to divide the chambers, they said. Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., complained Wednesday that the House had halted talks on a spectrum deal (CD Dec 15 p1). House Communications Subcommittee Chairman Greg Walden, R-Ore., responded that he’s waiting for the Senate to pass its own spectrum legislation. Congressional leaders said Thursday they were moving closer to agreement on a payroll tax cut bill, which has been used as a vehicle for spectrum legislation.
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Spectrum talks were still on hold Thursday afternoon, the Commerce committees said. “The House this week passed spectrum legislation that pays down the deficit, creates hundreds of thousands of jobs, and delivers a nationwide interoperable network for public safety,” Walden said late Wednesday. “We look forward to the Senate taking their turn to act on these important priorities for all Americans."
Walden and Rockefeller’s recent comments likely amount to rhetoric and posturing, telecom industry lobbyists said. If congressional leaders keep spectrum auctions in the payroll tax cut extension legislation, the House and Senate Commerce committees will be forced to reach a deal, said one lobbyist. Pressure from above would likely force them into talks, another lobbyist said. A broadcast industry lobbyist agreed, adding that, in Congress, talks are “never really over” until the members leave town. Guggenheim analyst Paul Gallant said he believes there is “still a strong desire on both sides to get it done, and sometimes these impasses are temporary.” But Gallant added that “the tone of the debate seems to be darkening.”
Earlier this week, Walden pointed to governance as the major divider between the House and Senate (CD Dec 14 p12). The Senate wants to establish a national body to set up and oversee the network, while the House favors a state-by-state approach involving a third-party administrator. If the House can find agreement on governance, the rest will come together, two telecom industry lobbyists predicted. “If talks on this subject break down” or the payroll tax cut bill “falls apart for other reasons,” a telecom lobbyist said, Walden has signaled that he will move his spectrum bill through the Commerce Committee next year.
Rockefeller signaled Wednesday that he may be willing to compromise on issues not directly tied to public safety. Rockefeller said that “the rest of the spectrum debate is secondary to the needs of our fire-fighters, cops, and emergency workers.” Rockefeller said throughout the writing of the Spectrum Act (S-911) that public safety is his priority, two broadcast industry lobbyist noted. However, high-profile advocates for unlicensed spectrum have unleashed a flurry of statements this week urging lawmakers to not restrict FCC flexibility in auctions.
"Please do not tell the FCC how to auction spectrum,” former FCC Chairman Reed Hundt urged Thursday. In an op-ed on TalkingPointsMemo.com, Hundt opposed provisions directing the FCC how to handle auction eligibility and restricting it from dedicating spectrum for unlicensed use. “The existing broadcasters should be treated fairly in the important conversion of spectrum from broadcast to wireless broadband uses,” he said. “But no one will benefit if Congress insists on telling the FCC -- as the House bill does -- who is eligible to bid or how the auction should be conducted. To have an efficient, fair, unpoliticized, neutral, pro-market auction the FCC should continue to be an auctioneer that is above political concerns."
The Commerce committees “need to work something out if lawmakers are still looking at spectrum sales to provide some offset to the payroll tax cut extension,” said Potomac Research analyst Paul Glenchur. The subject of spectrum “should lend itself to a bipartisan solution,” said Medley Global Advisors analyst Jeff Silva. “If spectrum legislation falters it will be largely because of a culture of hyper-partisan politics that should make all incumbents nervous in advance of the 2012 elections.”