[Congressional Record (Bound Edition), Volume 148 (2002), Part 4]
[Extensions of Remarks]
[Page 5684]
[From the U.S. Government Publishing Office, www.gpo.gov]




             INTRODUCTION OF THE AUCTION REFORM ACT OF 2002

                                 ______
                                 

                        HON. W.J. (BILLY) TAUZIN

                              of louisiana

                    in the house of representatives

                       Wednesday, April 24, 2002

  Mr. TAUZIN. Mr. Speaker, I rise today to introduce the Auction Reform 
Act of 2002. This bill will eliminate the statutory deadlines that have 
prompted the FCC to schedule auctions in June for spectrum in the 700 
MHz band currently occupied by television broadcasters.
  I believe that this legislation should not be necessary to preclude 
the Commission from conducting the auctions in June. The FCC currently 
has the authority to delay these auctions, and should do so. But, in 
addition, to asking the FCC to use its own authority to delay the 
auctions, I, along with John Dingell and 50 of our colleagues from the 
Energy and Commerce Committee, am introducing this bill to strip the 
deadlines from the books.
  It is true that the auction of the upper portion of the 700 MHz band 
has been delayed five times. But, Mr. Speaker, conducting the auctions 
for both the upper and lower parts of the 700 MHz band in June would be 
wrong. These auctions are simply not ready for prime time.
  Let me address some of the reasons why these auctions should not take 
place:
  No comprehensive plan exists for allocating additional spectrum for 
third generation wireless and other advanced mobile communications 
services. The 700 MHz band may prove to be the commercial mobile 
wireless industry's only viable short-term option for obtaining 
additional spectrum for advanced mobile communications services if 
spectrum from other bands below 3 GHz is not allocated for such 
purposes.
  The study being conducted by the National Telecommunications and 
Information Administration (NTIA) and the Pentagon to determine whether 
the Pentagon can share or relinquish additional spectrum for third-
generation wireless and other advanced mobile communications services 
will not be completed until after the June 19th auction date for the 
upper 700 MHz band, and long after the applications must be filed to 
participate in the auction.
  It is difficult for wireless carriers to make a sound business 
decision concerning what options are available for spectrum for third-
generation and other advanced mobile communications services until the 
NTIA/Pentagon report has been released and evaluated.
  The Commission is also in the process of determining how to resolve 
the interference problems that exist in the 800 MHz band, especially 
for public safety. One option being considered for the 800 MHz band 
would involve the 700 MHz band. The Commission should not hold the 700 
MHz auction before the 800 MHz interference issues are resolved or a 
tenable plan has been approved.
  The 700 MHz band is still occupied by television broadcasters, and 
will be so until the digital transition is complete. This situation 
creates a tremendous amount of uncertainty concerning when the spectrum 
will be available and reduces the value placed on the spectrum by 
potential bidders. The encumbrance of the 700 MHz band reduces both the 
amount of money that the auction would be likely to produce and the 
probability that the spectrum would be purchased by the entities that 
valued the spectrum the most and would put the spectrum to its most-
productive use.
  The Commission's rules governing voluntary mechanisms for the 
vacation of the 700 MHz band by the broadcasters produced no certainty 
that the band would be available for advanced mobile communications 
services, public safety operations, and other purposes any earlier than 
the existing statutory framework provides.
  Mr. Speaker, the FCC and the Administration clearly have a lot of 
work to do with respect to allocating and assigning additional spectrum 
for advanced mobile communications services and with respect to 
speeding the transition to digital television. Until more progress is 
made in these areas, the 700 MHz band auctions should not occur.
  Mr. Speaker, I am delighted that 52 Members of the Energy and 
Commerce Committee are original co-sponsors of this legislation. It 
demonstrates that an overwhelmingly majority of members of our 
committee know that holding the auctions in June is the wrong policy 
decision for the FCC to make. The FCC should use its own authority to 
delay these auctions. And we are making clear that holding the auctions 
within the FCC's designated timeframe is contrary to both sound 
regulatory policy and contrary to the Communications Act.

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