[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 335 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 335

  To require the Secretary of Commerce to make additional frequencies 
available for commercial assignment in order to promote the development 
and use of new telecommunications technologies, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 4 (legislative day, January 5), 1993

Mr. Inouye (for himself, Mr. Stevens, Mr. Danforth, Mr. Kerry, and Mr. 
Burns) introduced the following bill; which was read twice and referred 
       to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
  To require the Secretary of Commerce to make additional frequencies 
available for commercial assignment in order to promote the development 
and use of new telecommunications technologies, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emerging Telecommunications 
Technologies Act of 1993''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the Federal Government currently reserves for its own 
        use, or has priority of access to, approximately 40 percent of 
        the electromagnetic spectrum that is assigned for use pursuant 
        to the Communications Act of 1934;
            (2) many of such frequencies are underutilized by Federal 
        Government licensees;
            (3) the public interest requires that many of such 
        frequencies be utilized more efficiently by Federal Government 
        and non-Federal licensees;
            (4) additional frequencies are assigned for services that 
        could be obtained more efficiently from commercial carriers or 
        other vendors;
            (5) scarcity of assignable frequencies for licensing by the 
        Commission can and will--
                    (A) impede the development and commercialization of 
                new telecommunications products and services;
                    (B) limit the capacity and efficiency of the 
                telecommunications systems in the United States;
                    (C) prevent some State and local police, fire, and 
                emergency services from obtaining urgently needed radio 
                channels; and
                    (D) adversely affect the productive capacity and 
                international competitiveness of the United States 
                economy;
            (6) a reassignment of these frequencies can produce 
        significant economic returns;
            (7) a reassignment of Federal Government frequencies can be 
        accomplished without adverse impact on amateur radio licenses 
        that currently share allocations with Federal Government 
        stations;
            (8) current spectrum assignment procedures--comparative 
        hearings and lotteries--can be expensive and time consuming, 
        can strain the limited resources of the Federal Communications 
        Commission, and can result in an inefficient distribution of 
        spectrum and an unjustified windfall to speculators;
            (9) competitive bidding could reduce the cost in time and 
        money--and increase the efficiency--of the spectrum assignment 
        process for certain radio services, discourage speculative 
        applications, encourage the efficient use of spectrum by 
        licensees, and fairly compensate United States taxpayers for 
        use of a scarce public natural resource;
            (10) competitive bidding should be structured to--
                    (A) facilitate introduction of new spectrum-based 
                technologies and services and entry of new companies 
                into the telecommunications market;
                    (B) recognize the legitimate needs of rural 
                telephone companies in providing spectrum-based, common 
                carrier services in rural markets in which they provide 
                telephone exchange service by wire;
                    (C) give appropriate consideration to small 
                businesses that want to participate in the competitive 
                bidding process;
                    (D) recognize the need to make reasonably priced 
                mobile communications services available to businesses 
                in rural areas; and
                    (E) otherwise further the public interest;
            (11) competitive bidding should apply only to the granting 
        of new spectrum licenses and should not--
                    (A) disrupt the operations of existing spectrum 
                licensees;
                    (B) alter existing spectrum allocation procedures;
                    (C) apply to certain services governed by public 
                interest regulations;
                    (D) diminish the existing authority of the Federal 
                Communications Commission to regulate or reclaim 
                spectrum licenses; or
                    (E) grant any right to a spectrum licensee 
                different from the rights awarded to licensees who 
                obtain their license through assignment methods other 
                than competitive bidding;
            (12) in appropriating revenues received from competitive 
        bidding, priority should be given to--
                    (A) funding spectrum management, planning, 
                monitoring, and enforcement and other activities of the 
                Federal Communications Commission, the National 
                Telecommunications and Information Administration, and 
                other Federal agencies aimed at increasing the 
                efficiency and effectiveness of spectrum use, 
                facilitating the introduction of new spectrum-based 
                technologies and services, and enhancing the 
                international competitiveness of the United States and 
                the ability of American companies to enter new markets; 
                and
                    (B) extending the reach of public radio and 
                television to underserved areas of the United States 
                and underserved groups of Americans; and
            (13) the Secretary of Commerce, the President, and Federal 
        Communications Commission should be directed to take 
        appropriate steps to correct these deficiencies.

SEC. 3. NATIONAL SPECTRUM PLANNING.

    (a) Planning Activities.--The Assistant Secretary of Commerce for 
Communications and Information and the Chairman of the Commission shall 
meet, at least biannually, to conduct joint spectrum planning with 
respect to the following issues:
            (1) the future spectrum requirements for public and private 
        uses, including State and local government public safety 
        agencies;
            (2) the spectrum allocation actions necessary to 
        accommodate those uses; and
            (3) actions necessary to promote the efficient use of the 
        spectrum, including spectrum management techniques to promote 
        increased shared use of the spectrum that does not cause 
        harmful interference, as a means of increasing commercial 
        access.
    (b) Reports.--The Assistant Secretary of Commerce for 
Communications and Information and the Chairman of the Commission shall 
submit a joint annual report to the Committee on Energy and Commerce of 
the House of Representatives, the Committee on Commerce, Science, and 
Transportation of the Senate, the Secretary, and the Commission on the 
joint spectrum planning activities conducted under subsection (a) and 
recommendations for action developed pursuant to such activities. The 
first annual report submitted after the date of the report by the 
advisory committee under section 4(d)(4) shall include an analysis of 
and response to that committee report.

SEC. 4. RECOMMENDATIONS FOR REALLOCATION OF CERTAIN FREQUENCIES.

    (a) Identification Required.--For purposes of reallocation, the 
Secretary shall identify frequencies that--
            (1) are allocated on a primary basis for Federal Government 
        use;
            (2) are not required for the present or identifiable future 
        needs of the Federal Government;
            (3) can feasibly be made available, as of the date of such 
        identification or at any time during the next 15 years, for use 
        under the Act (other than for Federal Government stations under 
        section 305 thereof) without resulting in costs to the Federal 
        Government, or loss of services or benefits to the public, that 
        are excessive in relation to the benefits that may be obtained 
        by non-Federal licensees; and
            (4) are most likely to have the greatest potential for 
        productive uses and public benefits under the Act if allocated 
        for commercial uses.
    (b) Minimum Amount of Spectrum Recommended.--
            (1) Overall recommendation.--In accordance with the 
        provisions of this section, the Secretary shall recommend for 
        reallocation, for use other than by Federal Government stations 
        under section 305 of the Act (47 U.S.C. 305), at least 200 
        megahertz of frequencies identified under subsection (a) that 
        are located below 5 gigahertz. At least one-half of such 
        frequencies shall be located below 3 gigahertz.
            (2) Mixed uses permitted to be counted.--Among the 
        frequencies recommended under this section for allocation, the 
        Secretary may include frequencies and frequency bands that are 
        to be partially retained for use by Federal Government stations 
        but that are also recommended to be reallocated under the Act 
        for use by non-Federal stations, except that--
                    (A) such mixed-use frequencies and frequency bands 
                may not count toward more than one-half of the 200 
                megahertz minimum required by paragraph (1);
                    (B) such mixed-use frequencies and frequency bands 
                may not be so counted unless the assignments of the 
                frequencies to Federal Government stations under 
                section 305 of the Act (47 U.S.C. 305) are limited by 
                geographic areas, by time, or by other means so as to 
                guarantee that the potential use to be made by such 
                Federal Government stations is substantially less (as 
                measured by geographic area, time, or otherwise) than 
                the potential use to be made by non-Federal stations; 
                and
                    (C) such operational sharing shall be subject to 
                coordination procedures that the Commission shall 
                establish and implement to ensure against harmful 
                interference.
    (c) Consideration of Criteria for Identification.--
            (1) Needs of the federal government.--In determining 
        whether a frequency meets the criteria specified in subsection 
        (a)(2), the Secretary shall--
                    (A) consider whether the frequency is used to 
                provide a communications service that is or could be 
                available from a commercial carrier or other vendor;
                    (B) seek to promote--
                            (i) the maximum practicable reliance on 
                        commercially available substitutes;
                            (ii) the sharing of frequencies (as 
                        permitted under subsection (b)(2));
                            (iii) the development and use of new 
                        communications technologies; and
                            (iv) the use of nonradiating communications 
                        systems where practicable; and
                    (C) seek to avoid--
                            (i) serious degradation of Federal 
                        Government services and operations;
                            (ii) excessive costs to the Federal 
                        Government and users of Federal Government 
                        services; and
                            (iii) excessive disruption of existing use 
                        of Federal Government frequencies by amateur 
                        radio licensees.
            (2) Feasibility of use.--In determining whether a frequency 
        meets the criteria specified in subsection (a)(3), the 
        Secretary shall--
                    (A) assume that the frequency will be assigned by 
                the Commission under section 303 of the Act (47 U.S.C. 
                303) over the course of not less than 15 years;
                    (B) assume reasonable rates of scientific progress 
                and growth of demand for telecommunications services;
                    (C) determine the extent to which the reallocation 
                or reassignment will relieve actual or potential 
                scarcity of frequencies available for licensing by the 
                Commission for non-Federal use;
                    (D) seek to include frequencies which can be used 
                to stimulate the development of new technologies; and
                    (E) consider the immediate and recurring costs to 
                reestablish services displaced by the reallocation of 
                spectrum.
            (3) Commercial use.--In determining whether a frequency 
        meets the criteria specified in subsection (a)(4), the 
        Secretary shall consider--
                    (A) the extent to which equipment is available that 
                is capable of utilizing the band;
                    (B) the proximity of frequencies that are already 
                assigned for commercial or other non-Federal use;
                    (C) the extent to which commercial users can share 
                the frequency with amateur radio licensees; and
                    (D) the activities of foreign governments in making 
                frequencies available for experimentation or commercial 
                assignments in order to support their domestic 
                manufacturers of equipment.
            (4) Other uses.--
                    (A) Applicability of criteria.--The criteria 
                specified by subsection (a) shall be deemed not to be 
                met for any purpose under this Act with regard to any 
                frequency assignment to, or any frequency assignment 
                used by, a Federal power agency for the purpose of 
                withdrawing that assignment.
                    (B) Mixed use eligibility.--The frequencies 
                assigned to any Federal power agency may only be 
                eligible for mixed use under subsection (b)(2) in 
                geographically separate areas, but in those cases where 
                a frequency is to be shared by an affected Federal 
                power agency and a non-Federal user, such use by the 
                non-Federal user shall not cause harmful interference 
                to the affected Federal power agency or adversely 
                affect the reliability of its power system.
                    (C) Definition.--As used in this paragraph, the 
                term ``Federal power agency'' means the Tennessee 
                Valley Authority, the Bonneville Power Administration, 
                the Western Area Power Administration, or the 
                Southwestern Power Administration.
    (d) Procedure for Identification of Reallocable Bands of 
Frequencies.--
            (1) Submission of reports to the president and congress.--
                    (A) Report identifying 30 megahertz for immediate 
                reallocation.--Within 6 months after the date of 
                enactment of this Act, the Secretary shall prepare and 
                submit to the President and the Congress a report that 
                recommends for immediate reallocation 30 megahertz of 
                frequencies identified under subsection (a). None of 
                the frequencies covered by such report may be allocated 
                for mixed use as described in subsection (b)(2). Not 
                less than one-half of such frequencies shall be located 
                below 3 gigahertz.
                    (B) Preliminary report on other reallocable 
                frequencies.--Within 12 months after the date of 
                enactment of this Act, the Secretary shall prepare and 
                submit to the President and the Congress a preliminary 
                report that recommends for reallocation at least 170 
                megahertz of frequencies identified under subsection 
                (a), other than those recommended for immediate 
                reallocation under subparagraph (A).
                    (C) Final report on other reallocable 
                frequencies.--Within 24 months after the date of 
                enactment of this Act, the Secretary shall prepare and 
                submit to the President and the Congress a final report 
                that recommends the reallocation of at least 170 
                megahertz of frequencies as described in subparagraph 
                (B). Not less than one-half of such frequencies shall 
                be located below 3 gigahertz.
                    (D) Limitation on reallocation.--None of the 
                frequencies recommended for reallocation in the reports 
                required by this paragraph shall have been recommended, 
                prior to the date of enactment of this Act, for 
                reallocation to non-Federal use by international 
                agreement.
            (2) Convening of advisory committee.--Not later than the 
        date the Secretary submits the report required by paragraph 
        (1)(B), the Secretary shall convene an advisory committee to--
                    (A) review the frequencies identified in such 
                report;
                    (B) advise the Secretary with respect to (i) the 
                frequencies which should be included in the final 
                report required by paragraph (1)(C), and (ii) the 
                effective dates which should be established under 
                subsection (e) with respect to such frequencies;
                    (C) receive public comment on the Secretary's 
                report and on the final report; and
                    (D) prepare and submit the report required by 
                paragraph (4).
        The advisory committee shall meet at least monthly until each 
        of the actions required by section 5(a) have taken place.
            (3) Composition of committee; chairman.--The advisory 
        committee shall include--
                    (A) the Chairman of the Commission and the 
                Assistant Secretary of Commerce for Communications and 
                Information, and one other representative of the 
                Federal Government as designated by the Secretary; and
                    (B) representatives of--
                            (i) United States manufacturers of 
                        spectrum-dependent telecommunications 
                        equipment;
                            (ii) commercial carriers;
                            (iii) other users of the electromagnetic 
                        spectrum, including radio and television 
                        broadcast licensees, State and local public 
                        safety agencies, amateur radio licensees, and 
                        the aviation industry; and
                            (iv) other interested members of the public 
                        who are knowledgeable about the uses of the 
                        electromagnetic spectrum.
        A majority of the members of the committee shall be members 
        described in subparagraph (B), and one of such members shall be 
        designated as chairman by the Secretary.
            (4) Recommendations on spectrum allocation procedures.--The 
        advisory committee shall, not later than 36 months after the 
        date of enactment of this Act, submit to the Secretary, the 
        Commission, the Committee on Energy and Commerce of the House 
        of Representatives, and the Committee on Commerce, Science and 
        Transportation of the Senate a report containing such 
        recommendations as the advisory committee considers appropriate 
        for the reform of the process of allocating the electromagnetic 
        spectrum between Federal and non-Federal use, and any 
        dissenting views thereon.
    (e) Timetable for Reallocation and Limitation.--The Secretary 
shall, as part of the reports required by subparagraphs (B) and (C) of 
subsection (d)(1), include a timetable that recommends dates by which 
the President shall withdraw or limit assignments of the frequencies 
specified in the reports. The recommended effective dates shall--
            (1) permit the earliest possible reallocation of 
        frequencies, taking into account the requirements of section 6;
            (2) be based on the useful remaining life of equipment that 
        has been purchased or contracted for to operate on identified 
        frequencies;
            (3) be based on the need to coordinate frequency use with 
        other nations; and
            (4) take into account the relationship between the costs to 
        the Federal Government of changing to different frequencies and 
        the benefits that may be obtained from commercial and other 
        non-Federal uses of the reassigned frequencies.

SEC. 5. WITHDRAWAL OF ASSIGNMENT TO FEDERAL GOVERNMENT STATIONS.

    (a) In General.--The President shall--
            (1) within 3 months after receipt of the report required by 
        section 4(d)(1)(A), withdraw or limit the assignment to a 
        Federal Government station of any frequency in the 30 megahertz 
        of frequencies recommended by that report for immediate 
        reallocation;
            (2) by the effective date recommended by the Secretary 
        under section 4(e) (except as provided in subsection (b)(4) of 
        this section), withdraw or limit the assignment to a Federal 
        Government station of any frequency which the report required 
        by section 4(d)(1)(C) recommends be reallocated or made 
        available for mixed use on such delayed effective date;
            (3) assign or reassign other frequencies to Federal 
        Government stations as necessary to adjust to such withdrawal 
        or limitation of assignments; and
            (4) transmit a notice and description to the Commission and 
        each House of Congress of the actions taken under this 
        subsection.
    (b) Exceptions.--
            (1) Authority to substitute.--If the President determines 
        that a circumstance described in paragraph (2) exists, the 
        President--
                    (A) may substitute an alternative frequency for the 
                frequency that is subject to such determination and 
                withdraw (or limit) the assignment of that alternative 
                frequency in the manner required by subsection (a); and
                    (B) shall submit a statement of the reasons for 
                taking the action described in subparagraph (A) to the 
                Committee on Energy and Commerce of the House of 
                Representatives and the Committee on Commerce, Science, 
                and Transportation of the Senate.
            (2) Grounds for substitution.--Each of the following 
        subparagraphs describes a circumstance referred to in paragraph 
        (1):
                    (A) The reassignment would seriously jeopardize the 
                national defense interests of the United States.
                    (B) The frequency proposed for reassignment is 
                uniquely suited to meeting important governmental 
                needs.
                    (C) The reassignment would seriously jeopardize 
                public health or safety.
                    (D) The reassignment will result in costs to the 
                Federal Government that are excessive in relation to 
                the benefits that may be obtained from commercial or 
                other non-Federal uses of the reassigned frequency.
                    (E) The reassignment will disrupt the existing use 
                of a Federal Government band of frequencies by amateur 
                radio licensees.
            (3) Criteria for substituted frequencies.--For purposes of 
        paragraph (1), a frequency may not be substituted for a 
        frequency identified and recommended under section 4 for 
        reallocation, unless the substituted frequency also meets each 
        of the criteria specified by section 4(a).
            (4) Delays in implementation.--If the President determines 
        that any action cannot be completed by the effective date 
        recommended by the Secretary pursuant to section 4(e), or that 
        such an action by such date would result in a frequency being 
        unused as a consequence of the Commission's plan under section 
        6(b), the President may--
                    (A) withdraw or limit the assignment to Federal 
                Government stations on a later date that is consistent 
                with such plan, except that the President shall notify 
                each Committee specified in paragraph (1)(B) and the 
                Commission of the reason that withdrawal or limitation 
                at a later date is required; or
                    (B) substitute alternative frequencies pursuant to 
                this subsection.
    (c) Limitation on Delegation.--Notwithstanding any other provision 
of law, the authorities and duties established by this section may not 
be delegated.
    (d) Costs of Withdrawing Frequencies Assigned to the Federal 
Government.--
            (1) Reimbursement authorized.--Any Federal agency, or non-
        Federal entity operating on behalf of a Federal agency, whose 
        operation is displaced from a frequency pursuant to this 
        section may be reimbursed, from revenues received pursuant to 
        section 8, not more than the incremental costs such agency or 
        entity incurs (in such amounts as provided in advance in an 
        appropriations Act) that are directly attributable to the 
        displacement from the frequency. The estimates of these costs 
        shall be prepared by the affected agency, in consultation with 
        the Department of Commerce.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to the affected Federal agencies such sums 
        as may be necessary to carry out the purposes of this 
        subsection.

SEC. 6. ALLOCATION AND ASSIGNMENT OF FREQUENCIES BY THE COMMISSION.

    (a) Allocation and Assignment of Immediately Available 
Frequencies.--With respect to the 30 megahertz of frequencies made 
available for immediate reallocation pursuant to section 5(a)(1), the 
Commission, not later than 18 months after the date of enactment of 
this Act, shall issue rules to allocate such frequencies and shall 
propose rules to assign such frequencies.
    (b) Allocation and Assignment of Frequencies Available on Delayed 
Effective Dates.--With respect to the frequencies made available for 
reallocation pursuant to section 5(a)(2), the Commission shall, not 
later than one year after receiving notice from the President pursuant 
to section 5(a)(4), prepare, in consultation with the Assistant 
Secretary of Commerce for Communications and Information, and submit to 
the President and Congress a plan for the allocation and assignment 
under the Act of such frequencies. Such plan shall--
            (1) not propose the immediate allocation and assignment of 
        all such frequencies but, taking into account the timetable 
        recommended by the Secretary pursuant to section 4(e), shall 
        propose--
                    (A) gradually to allocate and assign the 
                frequencies remaining, after making the reservation 
                required by subparagraph (B), over the course of a 
                period of not less than 10 years nor more than 15 years 
                beginning on the date of submission of such plan; and
                    (B) to reserve a significant portion of such 
                frequencies for distribution beginning after the end of 
                such 10-year period;
            (2) contain appropriate provisions to ensure the 
        availability of frequencies for new technologies and services 
        in accordance with the policies of section 7 of the Act (47 
        U.S.C. 157);
            (3) address (A) the feasibility of reallocating portions of 
        the spectrum from current commercial and other non-Federal uses 
        to provide for more efficient use of the spectrum, and (B) 
        innovation and marketplace developments that may affect the 
        relative efficiencies of different spectrum allocations; and
            (4) not prevent the Commission from allocating frequencies 
        for specific uses in future rulemaking proceedings.
    (c) Amendment to the Act.--Section 303 of the Act (47 U.S.C. 303) 
is amended by adding at the end the following new subsection:
    ``(v) Have authority to assign the frequencies reallocated from 
United States Government use to non-United States Government use 
pursuant to the Emerging Telecommunications Technologies Act of 1993; 
except that any such assignment shall be made expressly subject to the 
right of the President to reclaim such frequencies under section 7 of 
such Act.''.

SEC. 7. AUTHORITY TO RECLAIM REASSIGNED FREQUENCIES.

    (a) Authority of President.--Subsequent to the withdrawal of 
assignment to Federal Government stations pursuant to section 5, the 
President may reclaim reassigned frequencies for reassignment to 
Federal Government stations in accordance with this section.
    (b) Procedure for Reclaiming Frequencies.--
            (1) Unallocated frequencies.--If the frequencies to be 
        reclaimed have not been allocated or assigned by the Commission 
        pursuant to the Act, the President shall follow the procedures 
        for substitution of frequencies established by section 5(b) of 
        this Act.
            (2) Allocated frequencies.--If the frequencies to be 
        reclaimed have been allocated or assigned by the Commission, 
        the President shall follow the procedures for substitution of 
        frequencies established by section 5(b) of this Act, except 
        that the notification required by section 5(b)(1)(B) shall 
        include--
                    (A) a timetable to accommodate an orderly 
                transition for displaced licensees to obtain new 
                frequencies and equipment necessary for its 
                utilization; and
                    (B) an estimate of the cost of displacing spectrum 
                uses licensed by the Commission.
    (c) Costs of Reclaiming Frequencies; Appropriations Authorized.--
The Federal Government shall bear all costs of reclaiming frequencies 
pursuant to this section, including the cost of equipment which is 
rendered unusable, the cost of relocating operations to a different 
frequency, and any other costs that are directly attributable to the 
reclaiming of the frequency pursuant to this section. There are 
authorized to be appropriated such sums as may be necessary to carry 
out the purposes of this section.
    (d) Effective Date of Reclaimed Frequencies.--The Commission shall 
not withdraw licenses for any reclaimed frequencies until the end of 
the fiscal year following the fiscal year in which the President's 
notification is received.
    (e) Effect on Other Law.--Nothing in this section shall be 
construed to limit or otherwise affect the authority of the President 
under section 706 of the Act (47 U.S.C. 606).

SEC. 8. COMPETITIVE BIDDING.

    (a) Competitive Bidding Test.--
            (1) In general.--
                    (A) Three-year authorization.--Subject to further 
                authorization in an Act making appropriations for the 
                Commission, the Commission shall, during fiscal years 
                1994 through 1996, use the competitive bidding process 
                authorized under the amendment made by subsection (b) 
                to grant radio spectrum licenses encompassing not more 
                than 30 megahertz of frequencies in up to three 
                different services.
                    (B) Waiver of requirement.--The Commission may 
                waive the competitive bidding requirement set forth in 
                subparagraph (A) on a case by case basis if it 
                determines that a waiver is necessary to further a 
                fundamental policy objective of the Act.
                    (C) Report to president and congress.--The 
                Commission shall prepare, in consultation with the 
                Assistant Secretary of Commerce for Communications and 
                Information, and submit, not later than March 31, 1997, 
                to the President and the Congress a report on the use 
                of competitive bidding under subparagraph (A). Such 
                report shall examine, in addition to any other matters 
                deemed appropriate by the Commission, whether and to 
                what extent--
                            (i) competitive bidding significantly 
                        improved the efficiency and effectiveness of 
                        the process for granting radio spectrum 
                        licenses;
                            (ii) competitive bidding facilitated the 
                        introduction of new spectrum-based technologies 
                        and the entry of new companies into the 
                        telecommunications market;
                            (iii) the needs of rural spectrum users 
                        were adequately addressed in the competitive 
                        bidding process;
                            (iv) small businesses were able to 
                        participate in the competitive bidding process; 
                        and
                            (v) statutory changes are needed to improve 
                        the competitive bidding process.
            (2) Limitation.--Notwithstanding any other provision of 
        this Act or other law, the Commission shall not use competitive 
        bidding, prior to September 30, 1997, to grant radio spectrum 
        licenses except as required in paragraph (1)(A).
    (b) Competitive Bidding Authorization.--Section 309 of the Act (47 
U.S.C. 309) is amended by adding at the end the following new 
subsection:
    ``(j)(1) Subject to the exemptions and conditions set forth in the 
other provisions of this subsection and to a further authorization in 
an Act making appropriations for the Commission, the Commission shall 
have authority to use competitive bidding in the granting of new 
construction permits or initial licenses.
    ``(2)(A) The Commission shall, within 18 months after the date of 
enactment of the Emerging Telecommunications Technologies Act of 1993 
and following public notice and comment proceedings, issue rules 
establishing competitive bidding procedures under this subsection.
    ``(B)(i) In the rules issued pursuant to subparagraph (A), the 
Commission shall require potential bidders to file a first-stage 
application indicating an intent to participate in the competitive 
bidding process and containing such other information as the Commission 
finds necessary. After conducting the bidding, the Commission shall 
require the winning bidder to file a second-stage application. After 
determining that such application is acceptable for filing and that the 
winning bidder is qualified as described in clause (ii), the Commission 
shall grant the permit or license to the winning bidder.
    ``(ii) No permit or license shall be granted to a winning bidder 
pursuant to clause (i) unless the Commission determines that such 
winning bidder is qualified pursuant to section 308(b) and subsection 
(a) of this section, on the basis of the information contained in the 
first-stage and second-stage applications submitted pursuant to clause 
(i).
    ``(iii) Each participant in the competitive bidding process shall 
be subject to the schedule of charges contained in section 8.
    ``(C) In the rules issued pursuant to subparagraph (A), the 
Commission shall, in addition to other actions it finds necessary to 
implement competitive bidding fairly and effectively--
            ``(i) establish minimum acceptable competitive bids;
            ``(ii) establish the method of bidding (including but not 
        limited to sealed bids) and the basis for payment (such as 
        lump-sum or installment payments, a combination thereof, or 
        other reasonable forms of payment); and
            ``(iii) establish other appropriate conditions on such 
        permits and licenses that serve the public interest.
    ``(3)(A) If the Commission decides to use competitive bidding to 
grant two or more national, regional, or local licenses in a 
terrestrial service that will compete with telephone exchange service 
provided by wire by a common carrier in a rural area, the Commission 
shall designate one license in such rural area as a rural program 
license.
    ``(B)(i) Except as provided in subparagraph (D), the Commissioner 
may only grant a rural program license to the qualified common carrier 
or carriers providing telephone exchange service in the rural area 
covered by such license.
    ``(ii) If the geographic service area of a license awarded by 
competitive bidding overlaps the service area of more than one 
qualified common carrier, the Commission shall grant a rural program 
license to each qualified common carrier or a consortium of such 
carriers for that portion of the geographic area served by a license 
awarded by competitive bidding that is congruent to the geographic area 
served by such qualified common carrier or carriers.
    ``(iii) No qualified common carrier that receives a rural program 
license in a rural area shall be eligible to--
            ``(I) receive any other license to provide the same service 
        in such area; or
            ``(II) own any equity interest in, become a creditor of, or 
        otherwise become affiliated with any entity that holds a 
        license to provide the same service in such area.
    ``(iv) Any qualified common carrier that receives a rural program 
license in a rural area shall provide to all other licensees providing 
the same service in such area the same quality of access to its wire 
network that it provides itself.
    ``(v) The Commission may establish other rules or conditions for 
the award of a rural program license.
    ``(C) Upon the grant of a rural program license to a qualified 
common carrier in a rural area, such carrier shall pay a fee (in lump-
sum or installment payments or a combination thereof or on any other 
reasonable basis specified by the Commission) equal to the value of 
such license. The value of such license shall be the average of the 
amounts paid by persons granted licenses through competitive bidding to 
provide the same service in such area, except that the Commission shall 
determine the value of such license by any reasonable means when the 
geographic area served by the rural license is not congruent with the 
geographic area served by the other license or licenses.
    ``(D) If no qualified common carrier applies for a rural program 
license, the Commission shall grant such license to any other qualified 
applicant by any other means authorized under this Act.
    ``(E) For purposes of this paragraph--
            ``(i) the term `rural area' means a geographic area that 
        does not include either--
                    ``(I) any incorporated place of 2,500 inhabitants 
                or more, or any part thereof; or
                    ``(II) any territory, incorporated or 
                unincorporated, included in an urbanized area (as 
                defined by the Bureau of the Census as of the date of 
                enactment of the Emerging Telecommunications 
                Technologies Act of 1993); and
            ``(ii) the term `qualified common carrier' means a common 
        carrier that--
                    ``(I) provides telephone exchange service by wire 
                in a rural area; and
                    ``(II) submits an application for a rural program 
                license in such area that meets the standards 
                established by the Commission to determine ability to 
                provide the service covered by the license.
    ``(4) The competitive bidding authority provided to the Commission 
in paragraph (1) shall not extend to--
            ``(A) license renewals and modifications;
            ``(B) the United States Government and State or local 
        government entities;
            ``(C) amateur operator services, over-the-air terrestrial 
        radio and television broadcast services, public safety 
        services, and radio astronomy services;
            ``(D) private radio end-user licenses, such as Specialized 
        Mobile Radio Service (SMRS), maritime, and aeronautical end-
        user licenses;
            ``(E) any license grant to a non-Federal licensee being 
        moved from its current frequency assignment to a different one 
        by the Commission in order to implement the goals and 
        objectives underlying the Emerging Telecommunications 
        Technologies Act of 1993; and
            ``(F) any other service, class of services, or assignments 
        that the Commission determines, after conducting public notice 
        and comment proceedings, should be exempt from competitive 
        bidding because of public interest factors warranting an 
        exemption to the extent the Commission determines the use of 
        competitive bidding would jeopardize appropriate treatment of 
        those factors.
    ``(5) No provision of this subsection or of the Emerging 
Telecommunications Technologies Act of 1993 shall be construed, in any 
way, to--
            ``(A) alter spectrum allocation criteria and procedures 
        established by the other provisions of this Act;
            ``(B) diminish the authority of the Commission under the 
        other provisions of this Act to regulate or reclaim spectrum 
        licenses; or
            ``(C) grant any right to a spectrum licensee different from 
        the rights awarded to licensees who obtained their license 
        through assignment methods other than competitive bidding.
    ``(6) Moneys received from competitive bidding pursuant to this 
subsection shall be deposited in the general fund of the Treasury.''.
    (c) Further Authorization Defined.--For purposes of this section 
and section 309(j) of the Act, as amended by this Act, the inclusion of 
the following language in an Act making appropriations for the 
Commission shall be sufficient to meet any requirement that action by 
the Commission be further authorized: ``The authority of the Federal 
Communications Commission to use competitive bidding in the granting of 
radio spectrum licenses in conformance with the procedures set forth in 
the Emerging Telecommunications Technologies Act of 1993 is hereby 
reconfirmed.''.

SEC. 9. DEFINITIONS.

    As used in this Act:
            (1) The term ``allocation'' means an entry in the National 
        Table of Frequency Allocations of a given frequency band for 
        the purpose of its use by one or more radiocommunication 
        services.
            (2) The term ``assignment'' means an authorization given to 
        a station licensee to use specific frequencies or channels.
            (3) The term ``commercial carrier'' means any entity that 
        uses a facility licensed by the Federal Communications 
        Commission pursuant to the Communications Act of 1934 for hire 
        or for its own use, but does not include Federal Government 
        stations licensed pursuant to section 305 of the Act (47 U.S.C. 
        305).
            (4) The term ``Commission'' means the Federal 
        Communications Commission.
            (5) The term ``Secretary'' means the Secretary of Commerce.
            (6) The term ``the Act'' means the Communications Act of 
        1934 (47 U.S.C. 151 et seq.).

                                 <all>