Pryor Questions Spectrum Auction Timing

Pryor said it’s important to discuss the amount of spectrum that the federal government controls but said “we need to be sensitive to [the Department of Defense] and the other agencies.” Pryor warned that “you can’t just kind of flip a switch and move them off” spectrum bands. … It is going to take some time and it is going to take a lot of money to do this and one of the things is to give them the incentive to do this -- that’s part of the proposal.” He noted that Defense recently offered to open up the 1755-1780 MHz band for sale by the FCC for wireless broadband use as long as Defense would be permitted to continue its operations in the 1780-1850 MHz band and have shared access to the 2025-2110 MHz band (CD July 23 p1).

Senate Commerce Committee members will likely pursue a “clean” reauthorization of the Satellite Television Extension and Localism Act, which is to expire Dec. 31, 2014, said Pryor. “What I'm hearing mostly from the committee and the subcommittee is that they would like to do a clean reauthorization,” Pryor said. His comments echoed previous C-SPAN interviews where both the chairman and ranking member of the House Commerce Committee said they're expecting a clean reauthorization bill (CD June 7 p3, May 24 p3). Pryor noted that both the House and Senate Judiciary Committees have jurisdiction over the bill and their members have yet to weigh in on the matter. “We are going to have to work with our colleagues on Judiciary and of course the House -- they have two committees there -- so this is going to be a four-step process instead of a two-step process,” he said. A House Judiciary aide said the committee is “currently studying this issue and we expect to have a hearing on this issue in the fall.” A Senate Judiciary Committee spokesman had no comment.

Pryor cautioned about any hasty attempt to rewrite of the 1996 Telecommunications Act: “It is possible that if Congress gets in and tries to legislate too much and too specifically in these areas then all of a sudden we may stifle innovation and we prevent the investment that we need to keep the cutting edge in the economy like we have had,” he said. “I think we need to continue to spur innovation and I think there are some fixes we need to do here and there.”

Pryor said the topic of federal regulations for the IP transition “may warrant further discussion” in subsequent subcommittee hearings. “Some of these companies want to come in and say as we are doing this IP transition, let’s get away from regulations, let’s be totally unregulated, let’s get rid of all of these obligations. That concerns me,” he said. “That may be the subject of a hearing of our subcommittee at some point. We haven’t announced that.” Pryor said the subcommittee may also hold a hearing on the FCC’s reform of the USF.

Pryor said lawmakers “ought to consider” a la carte video legislation recently reintroduced by Sen. John McCain, R-Ariz. But Pryor said the legislation may be rendered obsolete by rapid change occurring in the video marketplace. “The question is will a la carte be something that is really that desirable five years from now because things are changing so dramatically,” said Pryor. Right now “if you want to watch a show on NBC [there are] websites you can go to and download those shows,” he said. McCain’s Television Consumer Freedom Act (S-912), aims to encourage video programmers and distributors to offer a la carte video to consumers, deter broadcasters from downgrading their over-the-air services and amend the sports blackout rules (CD May 10 p1).

"While we can’t look into a crystal ball, we are confident that the FCC is making its best efforts to ensure that the auction preparations are moving along as quickly as possible,” said Julie Kearney, vice president-regulatory affairs at CEA, which supports a speedy incentive auction.