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Making His Case

Obama Administration Headed Off Threat of Spectrum Crunch, Genachowski Says

FCC Chairman Julius Genachowski said the FCC has made significant progress on addressing the spectrum “crunch” during his watch as chairman. His comments came in remarks Thursday at the University Of Pennsylvania’s Wharton School. There has not been a major spectrum auction since Genachowski became chairman and none have been formally scheduled, but he told the Wharton students that auctions are on the way. Genachowski includes in his calculations spectrum that won’t be cleared out right away but must be shared with federal government users, regarded by many as a tough task. (See related story, this issue.)

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"While FCC auctions in the 2000s were in many respects a big success, the FCC didn’t, in those years, replenish the spectrum pipeline,” Genachowski said. “When I returned to the agency in 2009, we had our work cut out for us. And we've been working. Since 2009, freeing up spectrum and unleashing the opportunities of mobile broadband have been at the top of the FCC’s agenda. In fact, about 85 percent of the commission’s meetings since I became chairman have had a wireless item on the agenda.”

Genachowski said the FCC is on target to meet a goal of “freeing up 300 MHz of spectrum by 2015.” Genachowski listed a second AWS license of 75 MHz of spectrum by 2015, selling “shared rights to the 1755-1780 MHz band” to be paired with the 2155-2180 MHz band. “We expect the first of these auctions -- of the AWS-2 H-block -- will happen in 2013,” he said. Genachowski also lists “40 megahertz of mobile satellite spectrum that I expect the commission will repurpose for land-based mobile use, and 30 megahertz in the long-troubled Wireless Communications Service band that is now poised to be used for LTE service."

Genachowski also cites the incentive auction of broadcast spectrum, approved by Congress in the February spectrum law, though he did not predict how much spectrum the auction will yield. “While we can’t know yet exactly how many megahertz incentive auctions will free up, the opportunity is large, particularly given the highly desirable nature of this 600 MHz spectrum for mobile broadband,” he said.

An FCC official questioned Genachowski’s reliance on shared spectrum to meet the 300 MHz goal. “At what point did we get there?” the official asked. “Where has been the deep probing and hard analysis of NTIA’s conclusion."

Genachowski also warned the Wharton students of a “war on Wi-Fi,” singling out remarks by Republican Commissioner Ajit Pai at last week’s FCC meeting (CD Oct 1 p1). “Just last week, one of my colleagues at the commission suggested that the FCC significantly limit unlicensed opportunities in the spectrum freed up by incentive auctions, including questioning whether the FCC had to auction and license every megahertz of repurposed spectrum instead of making some of it available for entirely unlicensed use,” Genachowski said.

A spokesman for Pai fired back. “The idea that anyone at the FCC is launching a ‘war on Wi-Fi’ is laughable,” the spokesman said in an email. “When it comes to spectrum policy, Commissioner Pai has said -- repeatedly and publicly -- that he believes in an ‘all of the above’ approach that includes both licensed and unlicensed use.” Pai “also believes that the FCC must comply with the laws written by Congress,” the spokesman said. “If we are confident that the proposed band plan is consistent with the Spectrum Act, then what’s wrong with asking simple questions on the topic? If we can’t even ask questions, it’s going to be hard to reach the right answers. Commissioner Pai has an open mind on this issue, and he looks forward to reviewing input from the public. He hopes that all of his colleagues, including the Chairman, also will approach the record with an open mind."

"We're glad this FCC and this administration have taken real steps to encourage sharing, which is a better solution than clearing alone to meet demand,” said Free Press Policy Director Matt Wood. “The commission has teed up some concrete possibilities for unlicensed use in the incentive auction proceeding, but there’s obviously a lot left to do in that docket to preserve and expand open spectrum in current TV bands. However, as Free Press has explained time and time again, we're not facing a spectrum crunch in this country: We're facing a spectrum allocation problem and a competition crisis.”

But officials at free-market oriented groups challenged some of Genachowski’s points. “How refreshing, a member of the Obama administration blaming [George W.] Bush for their own failings,” said Less Government President Seton Motley.

"Although getting ready for auctions is not uncomplicated, to some extent Chairman Genachowski may be faulted for not doing enough early on in his tenure to address the spectrum crunch,” said Free State Foundation President Randolph May. “He was too single minded in focusing the commission’s energies on adopting net neutrality mandates and this detracted from addressing spectrum matters. And he didn’t allow the secondary market to function as freely as it should. But President [Barack] Obama deserves some blame too for failing to exercise more leadership in getting some government frequencies repurposed for private sector use.”

"The speech is aspirational,” said Richard Bennett of the Information Technology and Innovation Foundation. “The FCC has significant spectrum ‘in the pipe’ that can be cleared and auctioned for mobile use if things go well, but it has yet to deliver a significant increase in the mobile spectrum inventory. The mobile industry isn’t clamoring for shared spectrum, unlicensed, or special-purpose allocations such as the one provided in the commission’s Medical Body Area Networks order, it wants and needs more general-purpose, flexible use spectrum that can serve consumer needs in a practical way. The FCC’s ability to provide more spectrum is limited by the fact that most of it has to come from government uses that aren’t under its control, as government spectrum is administered by NTIA, an agency that lacks the power to force more efficient use of the government’s airwaves.”