[Congressional Record Volume 146, Number 82 (Monday, June 26, 2000)]
[Extensions of Remarks]
[Page E1112]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E1112]]
              21ST CENTURY SPECTRUM RESOURCE ASSURANCE ACT

                                 ______
                                 

                           HON. CLIFF STEARNS

                               of florida

                    in the house of representatives

                         Monday, June 26, 2000

  Mr. STEARNS. Mr. Speaker, I rise to introduce, along with my 
colleagues, Mr. Tauzin, Mr. Oxley, Mr. Deal, Mr. Ehrlich, and Mr. 
Rogan, legislation preventing the Federal Communications Commission 
from imposing spectrum caps on future Commercial and Mobile Radio 
Services (CMRS) auctions.
  Today, the commercial wireless industry is the most competitive 
sector of the U.S. telecommunications marketplace: 238 million 
Americans can now choose between 3 and 7 wireless providers; more than 
87.9 million Americans can now choose from among 6 or more wireless 
providers; and 87.7 million Americans can choose among 5 wireless 
providers.
  In 1994, FCC adopted the cap to prohibit a single entity's 
attributable interests in the licenses of broadband PCS, cellular, and 
Specialized Mobile Radio (SMR) services from cumulatively exceeding 
more than 45 MHz of spectrum within the same geographic area. The cap 
was to ensure multiple providers would be able to obtain spectrum in 
each market and thus facilitate development of competitive markets for 
wireless services.
  Today, however, the current 45 MHz spectrum cap is beginning to 
impact innovation and competition in the wireless industry. The cap now 
works to limit competition by denying wireless providers access to open 
markets, thereby denying consumers the benefits that arise from 
additional competition, such as lower prices and innovative services.
  Furthermore, wireless providers have limited room for advanced 
services such as data on their networks and as they plan for Third 
Generation (3G) services, which will include enhanced voice, video, 
Internet and other broadband capabilities, the lack of spectrum 
threatens the ability to expand current systems and entice new 
customers. Additionally, continuation of the spectrum cap will result 
in the continued lag of U.S. companies behind Europe and Japan in the 
deployment of wireless 3G technologies.
  The legislation I am offering merely prevents the FCC from imposing 
the CMRS spectrum cap on spectrum auctioned after January 1, 2000. It 
does not repeal the current spectrum cap on CMRS spectrum, or lift the 
cap on spectrum that has already been auctioned. This legislation is a 
timely proposal to ensure that innovation and competition continue to 
drive the commercial wireless industry.

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