[Congressional Record Volume 148, Number 54 (Friday, May 3, 2002)]
[Extensions of Remarks]
[Page E696]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




INTRODUCTION OF ``WIRELESS TECHNOLOGY INVESTMENT AND DIGITAL DIVIDENDS 
                                 ACT''

                                 ______
                                 

                         HON. EDWARD J. MARKEY

                            of massachusetts

                    in the house of representatives

                         Thursday, May 2, 2002

  Mr. MARKEY. Mr. Speaker, today I am introducing the ``Wireless 
Technology Investment and Digital Dividends Act.'' I am proposing this 
measure in order to advance three key goals: (1) to create a permanent 
public interest telecommunications trust fund; (2) to establish a 
``Spectrum Commons''; and (3) to recapture wireless policymaking from 
unrelated budgetary initiatives.
  Mr. Speaker, the public deserves to reap the benefits of the sale of 
licenses to its air-waves, not only in the offering of new commercial 
services or the temporary infusion of cash into the Federal treasury. 
The public should also enjoy the ``dividends'' that can be reaped by 
reinvesting money raised through use of a public asset in a manner 
designed to promote educational technology projects, educational 
software R&D, as well as initiatives addressing the digital divide.
  The bill I am introducing today creates a permanent trust fund (the 
``Digital Dividends Trust Fund'') from wireless auction revenue to fund 
such public interest telecommunications initiatives. Splitting the 
grants into two general categories--``human capital telecommunications 
investments'' and ``broadband infrastructure investments for public 
access and rural development'' the Digital Dividends Trust Fund 
authorizes grants for the following initiatives: Training of teachers & 
other personnel at schools and libraries eligible for E-rate funding; 
R&D for cutting-edge educational software designed to enhance learning 
in schools; Digitizing educational materials held in our nation's 
libraries, archives, and museums; Technology projects supported by 
volunteers enrolled in AmeriCorps; Projects enhancing the access of 
individuals with disabilities to advanced telecommunications services; 
Retraining workers and unemployed individuals with skills applicable to 
the new economy; After-school programs for youth focused on computer 
literacy and interaction; Local and regional programs to expand access 
to advanced telecommunications in areas available to the general 
public; Broadband deployment to low-income housing and community 
centers and to unserved rural areas; and, Conversion of public radio 
and television broadcasting stations to digital broadcasting 
technology.
  In addition, Mr. Speaker, the legislation I introduce today 
establishes a ``Spectrum Commons.'' High tech manufacturers, 
entrepreneurs and the proverbial `kid in the garage' could make more 
robust use of wireless communications if sufficient spectrum were 
available in unlicensed form for the general public. The bill requires 
the FCC to establish a 20 MHz band of contiguous frequencies below 2 
GHz as well as between 3 to 500 MHz between 2 GHz and 6 GHz--a swath of 
the airwaves that would remain open to the public and unlicensed. Such 
a public set-aside could foster the formation of an open platform for 
innovation, entrepreneurial activity, and public communications. It 
would also militate against unhealthy consolidation of spectrum in the 
hands of too few providers.
  An unlicensed area of the airwaves will permit the public, through 
the use of `smart' radio technology and better receiver equipment, to 
harness the airwaves for countless applications if the government is 
willing to give back to the public a portion of its own airwaves in 
such an unlicensed format. From ``wi-fi'' technology and low power 
``Bluetooth'' wireless connections, to so-called ``802.11b'' protocols, 
wireless local area networks and Net connections, utilization of 
publicly available airwaves can help connect people and businesses in 
cost-effective and spectrum efficient ways. The ``Spectrum Commons'' 
will also help to propel economic growth and innovation by opening up 
the airwaves to new marketplace entry by individuals and entities 
unaffiliated with established network providers.
  Finally, Mr. Speaker, it is important that telecommunications 
policymaking reassert itself in wireless policy, where for too long 
budget priorities have warped sound policy. Since Congress first 
enacted legislation in 1993 to permit the Federal Communications 
Commission (FCC) to distribute certain airwave licenses to the public 
through the use of auctions, the FCC has used this licensing mechanism 
numerous times and the U.S. Government has reaped billions of dollars 
for general revenue purposes. The initial principle behind auctions was 
to enhance telecommunications policy goals through the efficient 
licensing of frequency spectrum, where the revenue an auction raised 
represented an additional beneficial dividend to the taxpayer.
  Over time, however, the use of auctions has become perverted. They 
are increasingly advocated primarily for purposes of raising general 
revenue irrespective of whether such auctions advance sound 
telecommunications policy. Moreover, the money raised from auctions has 
been sent directly to the U.S. Treasury. The money from 
telecommunications auctions was not reinvested in order to enhance our 
democracy, bridge the digital divide, or promote public interest 
telecommunications projects. Instead, the auction of licenses for use 
of the public's airwaves has been subjected to the alchemy of budget 
scorers intent on transforming thin air into gold.
  Legitimate telecommunications policy objectives are often undermined 
by proposals to auction certain slices of the airwaves on a date 
dictated by budgetary scoring needs. Instead, auctions should only be 
scheduled once the appropriate telecommunications policy goals have 
been agreed upon and the conditions necessary for successful licensing 
through auctions have been secured.
  This legislation requires the FCC, prior to scheduling upcoming 
auctions, to take action to achieve the timely transition to digital 
television by establishing rules governing must-carry issues, minimum 
programming and broadcasting requirements, and digital television 
receiver benchmarks. It also directs the NTIA and the FCC to take 
action to secure additional spectrum for advanced wireless services--
including mobile services such as so-called ``3G'' services. Sound 
telecommunications policy, consistent with the public interest, would 
be greatly furthered by putting the ``policy horse'' back in front of 
the ``auction cart.'' The bill re-establishes this principle in 
wireless policy.

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