[Congressional Record Volume 149, Number 46 (Friday, March 21, 2003)]
[Extensions of Remarks]
[Page E545]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page E545]]


   INTRODUCTION OF SPECTRUM COMMONS AND DIGITAL DIVIDENDS ACT OF 2003

                                 ______
                                 

                         HON. EDWARD J. MARKEY

                            of massachusetts

                    in the house of representatives

                        Thursday, March 20, 2003

  Mr. MARKEY. Mr. Speaker, today I am introducing the ``Spectrum 
Commons and Digital Dividends Act.'' I am proposing this measure in 
order to advance three key goals: (1) establishment of a ``Spectrum 
Commons;'' (2) creation of a permanent public interest 
telecommunications trust fund for education technology grants; and (3) 
ensuring that sound wireless telecommunications policymaking is not 
unduly skewed by unrelated budgetary initiatives.


                            Spectrum Commons

  Mr. Speaker, the legislation I introduce today promotes the goal of 
creating 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 the 2 GHz band, 
as well as between 3 to 500 MHz located between the 2 GHz and 6 GHz 
bands. These swaths of airwaves would constitute the ``Spectrum 
Commons'' and therefore 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.
  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 but only 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 ``802.11'' 
and successor 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. Moreover, the designation of cleared bands at such different 
locations in the frequency spectrum sets the stage for varied 
applications to emerge reflecting the respective physical properties 
that such bands currently possess.
  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, such as incumbent cable, telephone, or wireless carriers. In 
addition, ensuring sufficient unlicensed spectrum would also militate 
against unhealthy consolidation of spectrum in the hands of too few 
providers.


                      Digital Dividends Trust Fund

  Mr. Speaker, when the FCC does decide to proceed with auctions as a 
means of granting licenses for use of the public's airways, I believe 
that the public deserves to reap the benefits of the sale of licenses 
to its airwaves. Yet these benefits should not only manifest themselves 
in the offering of new commercial services or the temporary infusion of 
cash into the Federal treasury as under current law. I propose in this 
legislation that 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 trust fund, capped at $5 
Billion, to cover any reasonable relocation costs incurred by Federal 
government users of the spectrum when they are moved to other frequency 
locations. This $5 Billion figure does not represent the full extent of 
financial assistance available to Federal agencies, it merely reflects 
the amount that will be available to them through auction revenue. Any 
additional relocation costs above that amount can be paid for through 
the traditional appropriations process by which Congress operates and 
funds such necessary government costs and services.
  The bill proposes taking any surplus auction revenue and creating a 
permanent trust fund (the ``Digital Dividends Trust Fund'') from 
wireless auction revenue in order 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.
  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 benefit 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 seeks to re-establish this principle in 
wireless policy.
  Mr. Speaker, my Telecommunications and Internet Subcommittee 
colleague and chairman, Mr. Upton, has companion legislation addressing 
similar subject matter. I look forward to working with him, Energy and 
Commerce Committee Chairman Tauzin, Ranking Member Mr. Dingell, and 
other interested members on these telecommunications initiatives and 
hopefully, by working together constructively, we can achieve consensus 
legislation for the House to consider later this year.




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