[Congressional Record Volume 142, Number 98 (Friday, June 28, 1996)]
[Senate]
[Pages S7297-S7298]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         REGARDING FCC AUCTIONS

  Mr. McCAIN. Mr. President, I wanted to take a moment of the Senate's 
time to discuss the issue of spectrum auctions. Specifically, I want to 
discuss the potential for the Federal Communications Commission to 
auction channels 60 to 69.
  The American people expect the Congress and the FCC to manage this 
country's public assets in a responsible manner that ensures the 
greatest benefit to the public as a whole. Unfortunately, both the 
Congress' and the FCC stewardship of this Nation's spectrum--one of the 
most valuable public resources--has been uneven at best.
  To date over $20 billion has been raised by spectrum auctions. This 
$20 billion is being used to pay down the deficit and to fund needed 
Government programs. The American people benefit from these auctions in 
that they allow innovative companies to offer new and exciting services 
and reduce the need on taxes.
  As my colleagues know, there is considerable debate as to how to 
allocate broadcast ATV licenses. The Congress should and I hope soon 
will act on this issue and give the FCC the appropriate guidance 
necessary on that issue. However, such guidance is not neither needed 
nor required for the Commission to act on the issue of auctioning 
channels 60 to 69.
  Although there are stations that operate between channels 60 to 69, 
those entities can be relocated or share other spectrum and still 
operate. In the long run these entities will not be adversely affected 
by being forced to relocate.
  During a recent hearing of the Commerce Committee, I inquired of the 
FCC Chairman as to whether a transition from analog to digital 
television could occur seamlessly while still auctioning channels 60 to 
69. Mr. Hundt informed me that FCC engineers foresee no problems with 
this auction simultaneously occurring while a transition to digital TV 
occurs.
  Based on that evidence, I can see no reason whatsoever for an auction 
of channels 60 to 69 not to occur. Any effort to thwart an auction of 
these channels is being done in direct contradiction of the needs of 
the best interests of the American people.
  The last time the Commission had a similar issue before it the 
Commission decided--correctly I believe--to auction a block of spectrum 
previously held by a company named ACC. This auction fairly allocated 
the spectrum and resulted in a $682.5 million windfall for the American 
taxpayer.
  Deciding to vote to auction that spectrum should have been an easy 
decision. However, it proved to be very controversial. Some have 
indicated that the decision to auction channels 60 to 69 may be equally 
vexing.
  Mr. President, I sincerely hope that the FCC will see clear to do the 
right thing and auction these channels. This proposed auction will 
undoubtedly result in new revenues to the Treasury. If the Commission 
decides not to auction, I hope the Commission will correctly identify 
its action as a ripoff of the American taxpayer.

[[Page S7298]]

  Mr. President, I yield the floor.

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