Spectrum Policy for the 21St Century the President S Spectrum Policy Initiative: Second Report

SPECTRUM POLICY FOR THE 21ST CENTURY – THE PRESIDENT’S SPECTRUM POLICY INITIATIVE: REPORT 2

RECOMMENDATIONS FROM STATE AND LOCAL GOVERNMENTS AND PRIVATE SECTOR RESPONDERS

U.S. DEPARTMENT OF COMMERCE DONALD L. EVANS, SECRETARY MICHAEL D. GALLAGHER, ACTING ASSISTANT SECRETARY FOR COMMUNICATIONS AND INFORMATION JUNE 2004 TABLE OF CONTENTS

EXECUTIVE SUMMARY...... i

INTRODUCTION...... i FACILITATE A MODERNIZED AND IMPROVED SPECTRUM MANAGEMENT SYSTEM...... ii CREATE INCENTIVES FOR MORE EFFICIENT AND BENEFICIAL USE OF SPECTRUM AND POLICIES TO PROVIDE A HIGHER DEGREE OF PREDICTABILITY AND CERTAINTY FOR INCUMBENT SPECTRUM USERS...... iii DEVELOP POLICY TOOLS TO STREAMLINE THE DEPLOYMENT OF NEW AND EXPANDED SERVICES AND TECHNOLOGIES WHILE PRESERVING NATIONAL AND HOMELAND SECURITY, AND PUBLIC SAFETY, AND ENCOURAGING SCIENTIFIC RESEARCH...... iv ADDRESS CRITICAL SPECTRUM NEEDS OF NATIONAL SECURITY, HOMELAND SECURITY, PUBLIC SAFETY, FEDERAL TRANSPORTATION INFRASTRUCTURE, AND SCIENCE...... v SECTION 1 – INTRODUCTION...... 1

BACKGROUND...... 1 THE PRESIDENT’S SPECTRUM POLICY INITIATIVE...... 2 PROCESS...... 3 SETION 2 – SPECTRUM MANAGEMENT IN THE UNITED STATES...... 5

U.S. SPECTRUM MANAGEMENT GOALS...... 5 EXECUTIVE BRANCH ORGANIZATIONS...... 7 THE NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION...... 7 THE DEPARTMENT OF STATE...... 10 THE FEDERAL COMMUNICATIONS COMMISSION...... 11 SECTION 3 – RECOMMENDATIONS AND ANALYSIS...... 14

FACILITATE A MODERNIZED AND IMPROVED SPECTRUM MANAGEMENT SYSTEM...... 14 CREATE INCENTIVES FOR MORE EFFICIENT AND BENEFICIAL USE OF SPECTRUM AND POLICIES TO PROVIDE A HIGHER DEGREE OF PREDICTABILITY AND CERTAINTY FOR INCUMBENT SPECTRUM USERS...... 21 DEVELOP POLICY TOOLS TO STREAMLINE THE DEPLOYMENT OF NEW AND EXPANDED SERVICES AND TECHNOLOGIES WHILE PRESERVING NATIONAL AND HOMELAND SECURITY, AND PUBLIC SAFETY, AND ENCOURAGING SCIENTIFIC RESEARCH...... 22 ADDRESS CRITICAL SPECTRUM NEEDS OF NATIONAL SECURITY, HOMELAND SECURITY, PUBLIC SAFETY, FEDERAL TRANSPORTATION INFRASTRUCTURE, AND SCIENCE...... 25 APPENDIX A – PRESIDENT’S MEMORANDUM AND FACT SHEET...... A-1 APPENDIX B – QUICK LOOK: RECOMMENDATIONS FROM STATE AND LOCAL GOVERNMENTS AND PRIVATE SECTOR RESPONDERS...... B-1 EXECUTIVE SUMMARY

INTRODUCTION assuring public safety is incalculable. State and local governments rely on spectrum so In today’s era of modern communications, that public safety responders can communi- radio frequency spectrum is vital to our na- cate in times of attack or natural disaster. tion’s economic growth, national security, The recommendations in this report build homeland security, public safety, law enforce- upon the recent experiences of the federal ment, federal transportation infrastructure, spectrum community in its efforts to imple- and scientific research. However, access to ment new technologies – third generation this spectrum resource can be artificially re- (3G) wireless, unlicensed broadband, and ul- strained when spectrum management policies trawideband (UWB). Commercial access to fail to keep pace with advances in spectrum spectrum has been achieved through balanc- technologies. To ensure that our spectrum ing the critical spectrum needs of the federal management policies are capable of harness- agencies (including the Departments of De- ing the promise of beneficial, new technolo- fense, Transportation, Homeland Security, gies, yet meet our nation’s security goals, Justice, and the National Aeronautics and President George W. Bush established the Space Administration) with the economic Spectrum Policy Initiative (the Initiative) to benefits to the nation. develop a United States spectrum policy for In light of the significance of spectrum to the 21st century.1 the national economy and critical federal gov- New, innovative wireless technologies of- ernment missions and against a background of fer improved capabilities that can both propel positive accomplishment, the President direct- our economy and satisfy critical government ed the Secretary of Commerce to chair the missions. Wireless technologies and innova- Initiative and to conduct a comprehensive re- tion led by the private sector are driving com- view to develop recommendations for petition and providing consumers with an in- improving spectrum management policies and creasingly wide array of wireless telephony procedures for the federal government and to and broadband services. In March 2004, the address state, local, and private spectrum use. President announced a national goal that all The goal of the Initiative is to promote the de- Americans should have universal access to af- velopment and implementation of a U.S. fordable broadband technology by 2007. spectrum policy for the 21st century that will Some of the most promising new broadband foster economic growth; ensure our national technology is wireless. Expanding the and homeland security; maintain U.S. global amount of spectrum available for commercial leadership in communications technology de- uses will support high speed Internet access velopment and services; and satisfy other vital and therefore is integral to helping meet this U.S. needs in areas such as public safety, goal. scientific research, federal transportation The Administration has laid down a chal- infrastructure, and law enforcement. lenge for these technologies to assist in this Specifically, the President charged the objective. In addition, the role of spectrum in Secretary of Commerce to prepare recommendations to: 1 Memorandum for the Heads of Executive (a) facilitate a modernized and improved Departments and Agencies, Spectrum Policy for the spectrum management system; 21st Century, 69 Fed. Reg. 1569 (Jan. 9, 2004) (b) facilitate policy changes to create in- (hereinafter Presidential Memorandum) (Appendix centives for more efficient and beneficial use A). of spectrum and to provide a higher degree of Recommendations predictability and certainty in the spectrum management process as it applies to incum- 1. Establish the Department of Com- bent users; merce Spectrum Management Advisory (c) develop policy tools to streamline Committee the deployment of new and expanded services and technologies, while preserving The National Telecommunications and In- national security, homeland security, and formation Administration (NTIA) should es- public safety, and encouraging scientific tablish the Department of Commerce Spec- research; and trum Management Advisory Committee, con- (d) develop means to address the criti- sistent with the Federal Advisory Committee cal spectrum needs of national security, Act and the NTIA Organization Act.2 This homeland security, public safety, federal Committee would report to the Assistant Sec- transportation infrastructure, and science. retary for Communications and Information, The President directed the Secretary of Department of Commerce. The Committee Commerce to initiate two courses of action: would be comprised of a broad range of (a) to establish a Federal Government stakeholders including representatives from Spectrum Task Force (the “Task Force”) con- state, regional and local sectors, industry, sisting of the heads of affected executive academia, and consumer groups. The Federal branch agencies, departments, and offices to Communications Commission (FCC) and the address improvements in policies affecting Department of Homeland Security (DHS) spectrum use by federal agencies; and would be invited and encouraged to partici- (b) to schedule a series of public meetings pate as appropriate. The Committee would to address improvements in policies affecting advise the Assistant Secretary on needed re- spectrum use by state and local governments forms to domestic spectrum policies and man- and the private sector, as well as improve- agement to enable the introduction of new ments in policies for the spectrum manage- spectrum-dependent technologies and ser- ment process as a whole. vices, including policy reforms for expediting The President further directed the Secre- the American public's access to broadband tary of Commerce to prepare two separate re- services. ports containing the recommendations developed in the two respective courses of action. 2. Review and Improve International This report presents recommendations affect- Spectrum Management Policies ing spectrum use by state and local governments and the private sector developed (a) Coordinate and Review Internation- through the public meetings and written com- al Spectrum Policy and Framework. ments submitted to the Department of Com- NTIA, in coordination with other federal merce. Section 1 of the report provides a agencies, including the Department of State, brief introduction. Section 2 provides a sum- the FCC, and industry, should review (1) poli- mary description of the current spectrum cies and related international approaches re- management system used by the United States garding regional and global harmonization to satisfy its domestic and international re- and interoperability of spectrum; and (2) the quirements for using the spectrum. Section 3 international regulatory and procedural frame- details each of the recommendations and pro- work to remove barriers that prevent the time- vides the rationale for these recommenda- ly implementation of new spectrum- depen- tions. dent technologies and services.

FACILITATE A MODERNIZED AND IMPROVED SPECTRUM MANAGEMENT SYSTEM. 2 5 U.S.C. App. 2; 47 U.S.C. §§ 901-904.

ii (b) Improve U.S. Processes for World 4. Promote Spectrum Management Radiocommunication Conferences Training (WRCs). NTIA, in coordination with the De- partment of State and other federal agencies, The FCC and NTIA should jointly should recommend improvements to the Unit- develop training programs for new spectrum ed States WRC preparatory process, including management personnel. These training (1) establishing U.S. delegations and appoint- programs and materials should be made ing the head of the delegation earlier; (2) im- available to spectrum managers in federal proving the process for gaining international government agencies, to non-federal agencies support for U.S. proposals to the conference; (state, regional, and local), and to those and (3) establishing a schedule for domestic organizations designated by the FCC to implementation of decisions reached at coordinate uses of the spectrum. WRCs. CREATE INCENTIVES FOR MORE EFFICIENT 3. Develop and Promote the Use of AND BENEFICIAL USE OF SPECTRUM AND Spectrum Management Tools for Coor- POLICIES TO PROVIDE A HIGHER DEGREE OF dinating New Services and Managing PREDICTABILITY AND CERTAINTY FOR Interference INCUMBENT SPECTRUM USERS.

(a) Develop Spectrum Management Recommendations Tools. NTIA, in conjunction with the federal agencies, the FCC, and industry should devel- 5. Establish Economic and Efficiency op modern spectrum management tools. Incentives These tools would reduce the time required to coordinate new spectrum uses with incum- (a) Encourage Congress to Enact Leg- bents and to perform required analyses of po- islation to Increase Incentive Authority. tential interference associated with emerging The Administration should continue to en- spectrum dependent technologies and ser- courage Congress to enact legislation that vices. These tools would inform and assist provides the FCC with permanent authority to future spectrum management decision-making conduct spectrum auctions for licenses and to by both NTIA and the FCC. collect fees for spectrum use. This proposed legislation would support incentives for effi- (b) Promote the Use of Spectrum Man- cient use of the spectrum. The Administra- agement Tools. NTIA, in conjunction with tion should also continue to support legisla- the FCC, should promote the use of these tion that would establish a spectrum reloca- tools by federal agencies, state and local tion fund that would streamline the process agencies, industry, and regulators in other for reimbursing government spectrum users countries. and facilitate their relocation to comparable spectrum.

(b) Establish Economic Incentives. Once enacted into law, the FCC and NTIA should use the statutory authorities described in (a) to develop increased economic incentives for efficient spectrum use. In addition to market-based incentives like auctions and lease fees, the FCC should consider expanding the application of secondary markets across services.

iii (c) Examine Spectrum Rights as Incen- width within their respective jurisdiction for tives. NTIA, in conjunction with the FCC, this program. Each segment should be ap- should, through appropriate rulemaking pro- proximately 10 MHz for assignment on a cesses, examine the possibility of modifying shared basis for federal and non-federal use. spectrum rights as a means to encourage the The spectrum to be identified for this pilot deployment of spectrally efficient technolo- program could come from bands currently al- gies. These rulemakings should consider, located on either an exclusive or shared basis. among other things: (i) granting access to new Two years after the inception of the pilot pro- bands of spectrum to users deploying demon- gram, NTIA and the FCC should provide re- strably non-interfering technology, and (ii) ports outlining the results and suggesting ap- limiting the interference protection afforded propriate procedures for expanding the pro- to incumbents using inefficient technologies. gram as appropriate.

DEVELOP POLICY TOOLS TO STREAMLINE THE 7. Improve the Use of Information DEPLOYMENT OF NEW AND EXPANDED Technology to Modernize Spectrum SERVICES AND TECHNOLOGIES WHILE Management PRESERVING NATIONAL AND HOMELAND SECURITY, AND PUBLIC SAFETY, AND NTIA and the FCC should promote the ENCOURAGING SCIENTIFIC RESEARCH. use of advanced information technology (IT) capabilities to replace existing manual proce- Recommendations dures used in the coordination and licensing processes, including the coordination of 6. Support Emerging Technologies and NTIA and FCC certification and licensing Innovation databases. Improving these spectrum management operations would result in more (a) Identify and Analyze New Technolo- timely responses to proposals from both the gies. NTIA, working with the FCC and re- federal agencies and the commercial sector search and development laboratories in the for new spectrum uses. federal government and industry, should develop improved approaches for assessing the potential impact of emerging technologies and expanded services in a timely manner. This activity would include the identification of emerging technologies and expanded opportunities for government/industry cooperation.

ADDRESS CRITICAL SPECTRUM NEEDS OF NATIONAL SECURITY, HOMELAND SECURITY, PUBLIC SAFETY, FEDERAL TRANSPORTATION (b) Develop Spectrum Sharing and In- INFRASTRUCTURE, AND SCIENCE. novation Test-Bed. The FCC and NTIA, in coordination with the federal agencies, should RECOMMENDATIONS develop a plan to increase sharing of spectrum between federal government and non-federal 8. Encourage Long-Range Spectrum government users. Within two years of this Planning report’s publication, NTIA and the FCC should establish a pilot program to allow for State, regional, and local government increased sharing between federal and non- agencies should be encouraged to establish federal users. NTIA and the FCC should each long-range spectrum planning processes and identify a segment of spectrum of equal band- to take into account the federal long-range

iv plans. The Department of Commerce Spectrum Management Advisory Committee, (b) Develop a Federal/Non-Federal identified in Recommendation 1, would assist Public Safety Demonstration Program. with this activity, ensuring that NTIA, DHS, NTIA should examine the feasibility of shar- and participating entities remain appropriately ing spectrum among commercial, federal and informed about current spectrum trends and local public safety and critical infrastructure issues. applications, including the possibility of leas- ing services. NTIA should develop and imple- 9. Identify and Address Unsatisfied ment one or more demonstration programs to Spectrum Requirements for Public test the operational and cost effectiveness of Safety sharing spectrum and communications infrastructure between federal, state, and/or local (a) Identify Unsatisfied Spectrum Re- governments and private users. quirements. NTIA, in conjunction with the FCC, DHS, officials from regional, state, and (c) Address Public Safety Spectrum local governments, and representatives from Shortage, Interference, New Technology the private-sector public safety community and Security Issues. Based on the results of should inventory spectrum use by the public the examination in (a), DHS, in coordination safety community; identify the major public with NTIA, the FCC, regional, state, and local safety requirements for spectrum-dependent governments, and representatives from the services that are not being satisfied by facili- private-sector public safety community, ties owned and operated by regional, state, should develop a comprehensive plan to ad- and local government agencies; and determine dress the fragmentation, shortage, interfer- if current spectrum use is efficient and identi- ence, and security issues related to communi- fy ways to make public safety use more effec- cation spectrum used by the public safety tive. community.

v SECTION 1 – INTRODUCTION

BACKGROUND  Globally, the International Telecommuni- cations Union (ITU) estimates that mobile The radio frequency spectrum is a vital services generated $364 billion in rev- national resource essential to a safe and eco- enues, and that 1.129 billion persons sub- nomically healthy society. Effective and effi- scribed to cellular service in 2002.6 cient use of the spectrum underpins efforts to ensure homeland security, national defense, Moreover, the role of spectrum in assuring public safety, law enforcement, domestic and safety and quality of life is inestimable. Uses international transportation, and scientific ex- of spectrum such as the communications of ploration. In addition, wireless technologies, public safety responders and various science driven by the private sector innovation, are applications confer important societal bene- fueling competition and providing consumers fits, but do not occur in a market context that with a vast array of telephony services and would measure their economic value. The broadband applications, thereby adding value tremendous value of the spectrum makes it to our national economy. As the following imperative that U.S. spectrum management demonstrates, their value to the United States policies keep pace with developing new tech- and to the global economy, while not entirely nologies, so that the nation can continue to quantifiable, is demonstrably immense. benefit from the services these new technologies can provide.  As of the end of 2003, capital investment For example, this Administration has laid in cellular and similar mobile technologies down a challenge for wireless services as a in the United States cumulatively totaled key component of the President’s goal of uni- approximately $146 billion, and generated versal, affordable access to broadband tech- about $88 billion in revenues.3 nology by 2007.7 New wireless broadband  Broadcast television garnered $41.4 bil- services like Wireless Fidelity (WiFi) and Wi- lion in advertising revenues in 2002. As MAX have the potential to make broadband of June 2003, over 100 million U. S. available in hard-to-serve areas to meet the households received broadcast TV ser- President’s goal. Because these and other vice.4 similar technologies are rapidly developing  The satellite industry estimates world rev- and changing, our spectrum management enues in that sector at $101 billion for policies must be flexible enough to ensure 2002.5 that new technologies continue to have access to spectrum. 3 Cellular Telecommunications and Internet Associa- Significant amounts of spectrum have al- tion, Semi-Annual Wireless Survey Industry Results ready been made available by the Administra- (2004) (hereinafter CTIA survey), available at http://www.ctia.org/public_policy/statistics/index.cfm/ AID/10030. 6 International Telecommunications Union, “Key Glob- 4 Federal Communications Commission, Annual As- al Telecom Indicators for the World Telecommunica- sessment of the Status of Competition in the Market for tion Service Sector,” available at the Delivery of Video Programming, Tenth Annual Re- http://www.itu.int/ITU-D/ict/statistics/at_glance/KeyT- port, FCC 04-5, MB Docket No. 03-172, at 63, 115 elecom99.html.. (Jan. 29, 2004). 7 The White House, A New Generation of American In- 5 Satellite Industry Association & Futron Corp., 2001- novation (April 2004), available at http://www.white- 2002 Satellite Industry Indicators Survey, available at house.gov/infocus/technology/economic_poli- http://www.sia.org/papers/Satellite%20Indicators%20- cy200404/innovation.pdf (last visited June 4, 2004) Survey-02.pdf. (hereinafter American Innovation). tion for a wide variety of wireless broadband spectrum management policies need to be services. Working in conjunction with the modernized. federal agencies and the Federal Communica- tions Commission (FCC), the Administration THE PRESIDENT’S SPECTRUM POLICY has made several new bands of spectrum INITIATIVE available for innovative new private-sector applications. Examples include: In June 2003, the President issued an executive memorandum outlining the Adminis-  255 MHz in the 5 GHz band for wireless tration’s initiative for spectrum management broadband networks (e.g., WiFi); reform. The Presidential Memorandum stated  90 MHz in the 1.7 and 2.1 GHz bands for that: advanced wireless mobile services (e.g., 3G wireless services); and The existing legal and policy framework for spectrum management has not kept pace with  The entire 3-10 GHz band for ultrawide- the dramatic changes in technology and spec- band (UWB) devices. trum use. Under the existing framework, the Government generally reviews every change To accommodate these new spectrum alloca- in spectrum use, a process that is often slow tions, spectrum managers had to integrate an and inflexible, and can discourage the intro- understanding of powerful new technologies duction of new technology. Some spectrum users, including Government agencies, main- into their decision-making processes. tain that the existing spectrum process is in- The new wireless broadband technologies sufficiently responsive to the need to protect that will be deployed in the 5 GHz band uti- current critical uses.8 lize spread-spectrum technology that is designed to “hop” across a large number of fre- The President further stated that: quencies. When combined with Dynamic Frequency Selection (DFS) capability, this My Administration is committed to promoting technology can sense the presence of other the development and implementation of a U.S. spectrum policy for the 21st century that operators before transmitting. When this will: (a) foster economic growth; (b) ensure technology is demonstrated to be effective our national and homeland security; (c) main- and certified by the FCC, it can co-exist with- tain U.S. global leadership in communications out interference in bands previously reserved technology development and services; and (d) for government radar systems. Similarly, satisfy other vital U.S. needs in areas such as public safety, scientific research, Federal UWB technologies combine very short trans- transportation infrastructure, and law enforce- mission pulses (typically less than a nanosec- ment.9 ond) with very wide bandwidths (e.g. 1-3 GHz) for new applications for radar and communications. Although UWB technologies operate at power levels low enough to operate as unlicensed devices, the bandwidths are so wide that they must emit portions of their sig- nals in bands unavailable for unlicensed use. The rulemakings necessary to authorize these new services, while ultimately successful, were fiercely debated and time consuming. To continue to accommodate new technologies in a more organized and timely manner and to ensure that critical government radio systems are protected from interference, U.S. 8 See Presidential Memorandum, supra note 1. 9 Id.

2 To meet these goals, the President estab- and local government agencies. Moreover, lished the “Spectrum Policy Initiative” to pro- the President encouraged the FCC to partici- mote the development and implementation of pate and provide input to NTIA. a U.S. spectrum policy for the 21st century. The Presidential Memorandum also re- He directed the Secretary of Commerce to quired the Secretary of Commerce to prepare chair the Initiative and to conduct a compre- two reports for the President with recommen- hensive review to identify recommendations dations based on this comprehensive review for improving spectrum management policies process. This report provides recommenda- and procedures for the federal government tions based on information gathered during and to address state, local, and private spec- the public meetings called for in the Initiative trum use. The President charged the Secre- as well as a Notice of Inquiry proceeding initi- tary of Commerce to prepare legislative and ated by NTIA. A companion report has been other recommendations to: prepared which contains the recommenda- (a) facilitate a modernized and improved tions of the Task Force. 11 spectrum management system; (b) facilitate policy changes to create in- PROCESS centives for more efficient and beneficial use of spectrum and to provide a higher degree of In order to allow commentary from as predictability and certainty in the spectrum wide a range of stakeholders as possible, management process as it applies to incum- NTIA convened four public meetings and is- bent users; sued a Notice of Inquiry in the Federal Regis- (c) develop policy tools to streamline the ter: 12 deployment of new and expanded services and technologies, while preserving national  December 9, 2003, a meeting addressing security, homeland security, and public safe- issues regarding spectrum efficiency and ty, and encouraging scientific research; and, the implementation of new spectrum de- (d) develop means to address the critical pendent technologies and services. spectrum needs of national security, home-  February 10-11, 2004, a meeting address- land security, public safety, federal trans- ing issues regarding spectrum uses for portation infrastructure, and science.10 public safety (Public Safety Meeting). The Presidential Memorandum also estab-  February 12-13, 2004, a meeting at the lished the Federal Government Spectrum National Academy of Sciences addressing Task Force (Task Force) to focus on improv- issues regarding United States spectrum ing spectrum management policies and proce- uses as a whole (National Academy of dures to stimulate more efficient and benefi- Sciences Forum). cial federal use of the spectrum. The Presi-  March 8, 2004, a meeting addressing rec- dent also directed the Secretary of Commerce ommendations by service providers, en- to hold a series of meetings to obtain the trepreneurs, and venture capitalists for im- views of the public on these issues. The proving the deployment of new spectrum- meetings were designed to assist the Secretary in developing recommendations for revising 11 st policies and procedures to promote more effi- Spectrum Policy for the 21 Century-The President’s Spectrum Policy Initiative: First Report, U.S. Depart- cient and beneficial use of spectrum without ment of Commerce, Recommendation 4, at ii-iii and harmful interference to critical incumbent 18-20 (hereinafter referred to as the "First Report"). users. Participants were to include spectrum 12 Information about the public meetings is available at users, equipment vendors, financial and in- http://www.ntia.doc.gov/osmhome/spectrumreform/pu dustry analysts, economists, technologists, bOut.htm. The Notice of Inquiry and comments re- consumer groups, and interested federal, state, ceived are available at http://spectrumreform.ntia.doc.- gov. See also, NTIA, United States Spectrum Manage- ment Policy for the 21st Century, Notice of Inquiry, 69 10 Id. Fed. Reg. 4923 (Feb. 2, 2004).

3 dependent technologies and services (San- idential Memorandum, this report presents ta Clara Forum). recommendations affecting spectrum use by  NTIA also published a comprehensive state and local governments and the private Notice of Inquiry in the Federal Register. sector. Section 1 of the report provides a Twenty responses were received from a brief introduction. Section 2 provides a sum- broad cross-section of state and local gov- mary description of the current spectrum ernment, and private sector entities. management system used by the United States to satisfy its domestic and international re- Based on the record compiled and in requirements. Section 3 details each of the rec- sponse to the concerns articulated in the Pres- ommendations and provides the rationale for these recommendations.

4 SECTION 2 – SPECTRUM MAN- AGEMENT IN THE UNITED STATES

BACKGROUND regulate the characteristics and permissible uses of the government’s radio equipment.15 The history of spectrum management is as The President has delegated these powers to old as the advent of radio communications. In the Assistant Secretary for Communications 1906, the year when speech and music were and Information who is also the Administrator first broadcast using radio, the first of NTIA.16 international radio conference was held. In As shown in Figure 1, the result of the the United States, widespread interference Act is that spectrum management in the caused by unchecked transmission resulted in United States is split between NTIA and the the Radio Act of 1912. The 1912 Act FCC, with inputs from other agencies in required the registration of transmitters with certain circumstances. NTIA manages the the Department of Commerce, but did not federal government’s use of the spectrum provide for the control of their frequencies, while the FCC manages all other uses. operating times, or station output powers. However, the Act does not mandate specific Thus, the 1912 Act was largely unsuccessful. allocations of bands for exclusive federal, In 1922, U.S. government users of the non-federal, or shared use; all such allocations spectrum gathered under the Secretary of stem from agreements between NTIA and the Commerce to form the Interdepartment Radio FCC. Advisory Committee (IRAC) to coordinate U.S. Government use of the spectrum. The U.S. SPECTRUM MANAGEMENT GOALS Government’s use of the spectrum was more easily coordinated than the public’s because Section 1 of the Act provides guidance the IRAC represented all federal users and regarding spectrum management objectives. such cooperation was mutually beneficial. It states that the FCC is to regulate: The Radio Act of 1927 established the Federal Radio Commission, which was so as to make available . . . a rapid, efficient, shortly replaced by the FCC under the Nationwide, and worldwide wire and radio 13 communication service with adequate facilities at Communications Act of 1934 (the Act). The reasonable charges, for the purpose of the national FCC is authorized to develop classes of radio defense, [and] for the purpose of promoting safety service, allocate frequency bands to the of life and property. . . .17 various services, and authorize frequency use to non-federal users. Title III of the Act authorizes the FCC to In addition, Section 305 of the Act regulate generally the “channels of radio preserves for the President the authority to transmission,” including the licensing and assign frequencies to all federal government operation of radio stations.18 Title III, owned and operated radio stations,14 as well as the authority to assign frequencies to 15 See 47 U.S.C. § 305(c). foreign embassies in Washington, DC, and to 16 See Section 103(b)(2) of the NTIA Organization Act (codified at 47 U.S.C. § 902(b)(2)); see also Executive Order 12046 (1978). 13 47 U.S.C. § 151 et seq. 17 See 47 U.S.C. § 151. 14 See 47 U.S.C. § 305(a). 18 See 47 U.S.C. § 301. however, provides few details on the FCC’s derives from radio communication services, objectives for spectrum management. In federal and non-federal, as well as the needs Figure 1. National Spectrum Management COMMUNICATIONS ACT OF 1934

THE PRESIDENT THE CONGRESS

NTIA FCC

Federal Users Non-Federal Users

National Defense COORDINATION Business Law Enforce. & State & Local Security Government Transportation Entertainment Resource Mgmt. & Commercial Control Private Emergencies Other Services ADVISORY LIAISON

INTERDEPARTMENT RADIO ADVISORY COMMITTEE Chaired by NTIA 20 Federal Agencies Represented general, the Act directs the FCC to act of various federal users and choices among consistent with the “public interest, competing users. convenience, or necessity.”19 The “public The FCC and NTIA jointly manage the interest” standard is the primary criterion for nation’s radio spectrum resources in the pub- apportioning spectrum in the United States to lic interest. Both agencies are committed to non-federal users, although the Act mentions performing their respective responsibilities in the goals of preventing interference among a cooperative, diligent, and professional man- stations, promoting the efficient use of ner to ensure that the spectrum is used for its spectrum, and promoting public safety. The highest and best purpose, whether by the pri- Act does not define “public interest,” but vate sector, state and local government, or instead gives the FCC broad discretion to federal agencies. The FCC and NTIA are re- elucidate and give specific content to the quired to work together to ensure that spec- public interest standard. trum policy decisions promote efficient use of NTIA is similarly charged with managing the spectrum consistent with both the eco- the federal government’s use of the radio nomic interests and national security of the spectrum in the public interest. The NTIA nation. To accomplish these goals, the Chair- Organization Act requires the agency to: man of the FCC and the Assistant Secretary for Communications and Information signed a . . . foster full and efficient use of Memorandum of Understanding (MOU) in telecommunications resources, including January 2003 that formalized their long-stand- effective use of the radio spectrum by the federal government in a manner that ing cooperative relationship. encourages the most beneficial uses thereof in Under the MOU, the Chairman of the the public interest.20 FCC and the Assistant Secretary for Commu- nications and Information agree to meet at NTIA interprets this mandate to encompass least twice each calendar year to conduct joint the overall benefits the American public spectrum planning. Further, they agree that their staffs will meet regularly to exchange information of mutual interest concerning spec- 19 See e.g., 47 U.S.C. § 303. 20 See 47 U.S.C. § 901(c)(4) trum management. Both agencies will give

6 notice to each other of all proposed actions an existing telecommunications Policy Coor- that could potentially cause interference to dinating Committee to establish a process by operations authorized by the other. Where which NTIA in conjunction with the FCC and possible, such notice will be given a mini- DOD were tasked to examine the technical mum of 15 business days prior to final action feasibility of making spectrum available for for the other agency to comment. NTIA’s As- 3G wireless services. HSC reviews spectrum sociate Administrator for Spectrum Manage- policy for its effects on first responders, inter- ment and the FCC’s Chief of the Office of operability, and telecommunications support Engineering and Technology may agree to a of homeland security and emergency pre- different review period. Final action by the paredness. either agency, however, does not require approval of the other. THE NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION EXECUTIVE BRANCH ORGANIZATIONS Executive Order 12046 established NTIA In addition to NTIA, several other Execu- in the Department of Commerce in 1978. tive Branch agencies are heavily involved in Subsequently, Congress codified these some aspects of spectrum management. The functions in the National Telecommunications Department of State (State Department) is re- and Information Administration Organization sponsible for formulation, coordination, and Act.21 Among other responsibilities, NTIA is oversight of foreign policy related to interna- the principal telecommunications policy tional communications and information poli- advisor to the President and the manager of cy. The Department of the Interior manages federal government use of the spectrum. the use of the spectrum in the Trust Territo- NTIA divides its responsibilities among five ries. offices and four staff groups, which work In addition, within the Executive Office of together to investigate the changing field of the President, the Office of Science and Tech- telecommunications and develop appropriate nology Policy (OSTP) provides technical ex- Administration policies and regulations. pertise and helps resolve differences between NTIA’s authority in spectrum federal agencies, and develops communica- management policy is broad. The NTIA tion support for continuity of operations of Organization Act provides NTIA with the telecommunications for the federal govern- authority to assign frequencies and approve ment. (The Director of OSTP serves as the the spectrum uses proposed for new federal nation’s telecommunications services manag- government systems. Federal users must er during wartime settings, and performs other obtain frequency assignments before they can operational telecommunications functions operate transmitters. during non-wartime emergencies.) The Pursuant to delegations from the President Office of Management and Budget (OMB) and the Secretary of Commerce, the provides budgetary oversight and policy coor- Administrator of NTIA is the ultimate dination with respect to federal spectrum mat- authority in all spectrum management ters. In addition to the involvement of OSTP decisions for the federal government, except and OMB, the staffs of the National Econom- frequency assignment decisions, which can be ic Council (NEC), the National Security appealed to the OMB Director. The Council (NSC), and the Homeland Security Administrator, in turn, has delegated the Council (HSC), who report to the President, responsibility for day-to-day spectrum have a role in reviewing national spectrum management decisions and for developing policy on national security, public safety, proposals for spectrum management policies homeland security, and economic development. For example, with respect to 3G wire- 21 Public Law No. 102-538, 106 Stat. 3533 (1992) less technical study, the NSC and NEC used (codified at 47 U.S.C. § 901 et seq.).

7 to the Associate Administrator for NTIA’s recommendations for conflict resolution.22 Office of Spectrum Management (OSM). The IRAC is composed of the representatives Some of the spectrum management work of 20 federal agencies and an FCC liaison. of OSM and NTIA involves classified As shown in Figure 2, the IRAC has six radiocommunication systems used by the subcommittees, which have representatives DOD, DOE, DOJ, DHS, and others to support from the federal agencies, and are chaired by public safety and national defense missions. OSM staff, and four ad hoc groups that These systems, although they are a relatively address various aspects of spectrum small proportion of the total number of management policy. NTIA provides to the federal government systems, (about 1% of all IRAC executive secretariat support and federal frequency assignments and 20% of all technical advice. new radiocommunication systems reviewed The IRAC Bylaws indicate that its by NTIA are classified) are of overwhelming primary function is to: importance to the safety and security of the United States. Because these systems are assist the Assistant Secretary for classified, NTIA may not be able to share Communications and Information, through the Deputy Associate Administrator of OSM, pertinent spectrum management data with in assigning frequencies to U.S. Government other users of the spectrum. However, OSM radio stations and in developing and very carefully considers both the impact of executing policies, programs, procedures and new technologies and systems on the existing technical criteria pertaining to the allocation, classified systems that must be protected and management, and use of the spectrum. The the economic needs of the industry and the basic role of representatives appointed to serve on the IRAC shall be to function, when people of the United States. in Committee, in the interest of the United OSM formulates and establishes plans and States as a whole.23 policies that ensure the effective, efficient, and equitable use of the spectrum. To achieve In addition, the IRAC provides a this broad objective, OSM: develops long- mechanism for coordinating federal use of the range spectrum plans to meet future federal spectrum and resolving interference conflicts government spectrum requirements; develops among the federal agencies. NTIA may plans for managing radio communications accept, reject, or modify the recommendations during emergencies; coordinates and registers of the IRAC on agency proposals for new federal government satellite networks frequency assignments, new internationally; satisfies the frequency radiocommunication systems, and spectrum assignment needs of the federal agencies; management issues of interest to their provides spectrum certification for new agencies. federal agency radio communication systems; performs the necessary engineering analysis Spectrum Management Decision-Making for evaluating and planning spectrum use; and at NTIA: NTIA reaches its decisions by provides the necessary automated information using the consensus advice from the IRAC, technology capability to perform these NTIA staff technical and policy analyses, and, activities. when appropriate, public input.24 This allows each federal spectrum-using agency to review Interdepartment Radio Advisory Committee (IRAC): The IRAC advises NTIA 22 Section 103(b)(2)(T) of the NTIA Organization Act on the development of spectrum policy and enables the Secretary of Commerce to establish intera- procedural matters, develops federal gency advisory committees, such as the IRAC. See 47 government positions on international radio- U.S.C. § 902(b)(2)(T); see also 47 U.S.C. § 904(b), (c) treaty conference issues, and provides (2). 23 See, NTIA Manual of Regulations and Procedures for Federal Radio Frequency Management, at ¶ 1.3.4 (May 2003 Edition, January 2004 Revisions).

8 SECRETARIAT IRAC Domestic Spectrum Policy & IRAC Support Div. Deputy Associate Administrator Domestic Spectrum Management SSS SPACE SYSTEMS SUBCOMMITTEE

FAS RCS TSC SPS EPS

FREQUENCY RADIO SPECTRUM EMRGENCY TECHNICAL ASSIGNMENT CONFERENCE PLANNING PLANNING SUBCOMMITEE SUBCOMMITTEE SUBCOMMITTEE SUBCOMMITTEE SUBCOMMITTEE

ABOUT 4 ACTIVE Ad Hoc Groups Figure 2. IRAC Organization proposals for new radio services and stations or less, while those requiring additional from other federal users (and non-federal information and interagency coordination can users in bands where regulatory jurisdiction is take considerably longer. Certification of shared by NTIA and the FCC) to determine if new systems takes about four to six months the new proposals will have an adverse on the average, depending on the complexity impact on existing and planned operating of the system, the environment in which it systems. The affected users can then will operate, the completeness of the negotiate directly and develop a timely application information, and the need for technical resolution to the potential problem. interagency coordination. NTIA decisions are thus broadly debated with a strong emphasis on rational, technical, and Technical Analyses: NTIA and the analytic bases to provide maximum flexibility federal agencies have long relied on the use of and support for the needs of new systems engineering analyses and technical standards while protecting the rights of the existing to select and authorize operating frequencies users. for radio stations of all types. These practices With regard to day-to-day authorization of have taken the form of minimum standards radio stations and certification of new major for transmitters and receivers and the use of federal systems, the decisions are made via minimum separation criteria for siting technical review with agency comment and systems as well as analyses of all potential coordination. NTIA generally bases its interference interactions to ensure compatible decisions on the consensual advice of the operations. The U.S. Government uses agencies with technical review of the complex computer databases and entry applications by NTIA staff. Routine validation routines to screen proposals for authorization requests take 14 working days conformance to appropriate standards and to ensure that users of systems potentially 24 The FCC is a liaison member of the IRAC and is ex- subject to interference are provided a chance pected to represent the views of the FCC during IRAC to coordinate operations. policy debates. Further, since many bands are shared by both non-federal and federal users, the NTIA and System Review Process and the Applica- FCC work closely to resolve potential conflicts resulting from policy initiatives. tion of Information Technologies: As the

9 spectrum has become more densely used over ment, including bilateral discussions with time, the technical rigor of the analyses and neighboring countries about operations of ra- screening of new services has become in- dio systems near the borders. Their role is to creasingly complex. Since the U.S. Govern- ensure that the United States speaks with one ment uses radio frequencies for many differ- voice and that all applicable precedents and ent services over the entire range of the spec- treaties are followed. The State Department, trum, any screening program must be suffi- along with NTIA and the FCC, oversees U.S. ciently complex to consider all possible inter- preparations for meetings of international actions between the various radio services. telecommunications bodies, such as the Inter- This analysis requires the ability to predict re- national Telecommunication Union (ITU), liably propagation losses in all types of ter- and the Inter-American Telecommunications rains and environments at all frequencies. Commission (CITEL). This system review process seeks to en- The State Department also prepares the sure that federal agencies procure only equip- U.S. Ambassador to head the U.S. delegation ment that is in conformance with all applica- to the World Radiocommunication Confer- ble standards and capable of operating within ences (WRCs) of the ITU, which occur every the existing environment without causing or 3-4 years to update the International Radio suffering interference. The system review Regulations, the treaty governing the coopera- process is needed partly because of the long tive use of the radio spectrum among member lead times for the development and imple- states. The State Department is responsible mentation of complex telecommunication sys- for beginning WRC preparations and, under tems and partly because of the rapid advances the appointed ambassador, leads the U.S. del- of telecommunications in general. The sys- egation. tem review process was formalized by the The International Telecommunication Ad- OMB Circular A-11, which requires federal visory Committee (ITAC), a General Services agencies to obtain certification from NTIA of Administration-chartered advisory committee spectrum availability before requesting funds under the Federal Advisory Committee Act, is for development or procurement of major sys- central to the Department of State’s process tems. The process has always used state-of- for managing the U.S. preparations for inter- the-art interference analyses to assess propos- national spectrum policy forums. The ITAC- als and has been successful in ensuring that Radiocommunication Activity (ITAC-R) deployed equipment would operate properly. process seeks to reconcile differences among The analyses and approval process often various competing interests of federal and requires four to six months for completion non-federal spectrum users in preparing the and resolution of problems. However, DOD formal submissions by the United States to and NTIA have begun developing improve- the ITU Radiocommunication Sector (ITU-R) ments to Spectrum XXI, an advanced Win- or CITEL. The ITAC submits its recommen- dows-based, PC-oriented program that assists dations to the State Department, which, in co- agencies in preparing information for both the ordination with NTIA and the FCC, deter- spectrum certification and frequency assign- mines the appropriate U.S. policy on the inter- ment portions of the federal spectrum man- national telecommunications issues and for- agement process. Spectrum XXI should per- wards that determination to the ITU-R or CI- mit near instant approval of proposals in full TEL as the formal United States submission. conformance with all applicable federal regu- National views and proposals on WRC lations. agenda items are originated by NTIA and the FCC, and represent the potentially conflicting THE DEPARTMENT OF STATE views of their constituents. The State Depart- ment presents the results of NTIA and FCC The State Department is involved in all deliberations and negotiations internationally international aspects of spectrum manage- and where necessary assists in resolving con-

10 flicts. The ITAC-R develops technical inputs NTIA works closely with the spectrum for the conference and submits them in a re- management components of the FCC, which port to the WRC. are found in the Office of Engineering and The State Department also initiates a Technology (OET), the Wireless “core delegation group” to lead the preparat- Telecommunications Bureau (WTB), the ory activities. The core delegation group is International Bureau (IB), and the comprised of the U.S. WRC Head of Delega- Enforcement Bureau (EB).The spectrum tion, the vice-chairs, agency principals and management responsibilities of these groups representatives from the State Department, are discussed below. the FCC, NTIA, NASA, and DOD. The group assists in the development and imple- Office of Engineering and Technology mentation of U.S. goals and objectives, the (OET): The OET advises the FCC on techni- development of U.S. policy positions, and the cal and policy issues pertaining to wireless resolution of conflicts with U.S. proposals. and wireline proceedings. In cooperation Finally, the State Department uses its with other organizations in the FCC, the OET worldwide network of embassies to garner directs staff work with respect to general fre- support for U.S. positions and proposals. The quency allocation proceedings and other pro- Department of State’s U.S. Mission in Gene- ceedings. In addition, the OET prepares rec- va supports the U.S. delegation both before ommendations for legislation, and reviews and during the conferences and meetings. recommendations for rule changes and rulemaking technical proposals initiated by other THE FEDERAL COMMUNICATIONS offices. COMMISSION The OET also serves as the primary con- tact point between the spectrum management The FCC is an independent federal activity of NTIA and the FCC by maintaining regulatory agency established by the a liaison with the IRAC. Communications Act of 1934. Its mission includes regulating interstate and international The Wireless Telecommunications Bureau communications by radio, television, wire, (WTB): The WTB handles all FCC domestic satellite, and cable. Its jurisdiction covers the wireless telecommunications programs and 50 states, the District of Columbia, and U.S. policies -- except those involving satellite possessions. communications or broadcasting -- including The FCC staff is organized by function. licensing and regulatory functions. Wireless There are currently six operating bureaus and communications services include cellular tele- ten staff offices. The bureaus’ responsibilities phone, paging, personal communications ser- include processing applications for licenses vices, public safety, and other commercial and other filings; analyzing complaints; and private radio services. The WTB is also conducting investigations; developing and responsible for implementing the FCC’s statu- implementing regulatory programs; and tory authority to assign spectrum licenses by collecting information via public meetings competitive bidding. and hearings. Bureaus have been delegated a The goals of the WTB include fostering significant level of responsibility to carry out competition among different services, pro- the day-to-day authority and decisions of the moting universal service, public safety, and FCC in their specific areas of service to individuals with disabilities, maxi- telecommunications service. The offices mizing efficient use of spectrum, developing a provide technical and staff support services to framework for analyzing market conditions all bureaus to ensure continuity. Even though for wireless services, minimizing regulation the bureaus and offices have their individual where appropriate, and facilitating innovative functions, they regularly work together and service and product offerings, particularly by share expertise in addressing FCC issues. small businesses and new entrants.

11 International Bureau (IB): The IB serves adjudicates and mediates disputes between as the focal point within the FCC for coopera- telecommunications industry entities. tion and consultation on international The EB also enforces rules designed to telecommunications matters with other feder- protect safety of life such as the Emergency al agencies, international or foreign organiza- Alert System, construction, marking and tions, and appropriate regulatory bodies and lighting of antenna structures and radiofre- officials of foreign governments. The IB ad- quency radiation. vises the Chairman and Commissioners on matters of international telecommunications Spectrum Management Decision-Making policy. The IB develops, recommends, and at the FCC: The FCC’s day-to-day decisions administers policies, rules, and procedures for in assigning frequencies and licensing stations the authorization and regulation of interna- are made in several different ways. The FCC tional telecommunications facilities and ser- will issue licenses directly to qualified appli- vices and domestic and international satellite cants when non-exclusive use of the spectrum systems. The IB represents the FCC on inter- is possible. national telecommunications matters at both The FCC is required to use auctions to re- domestic and international conferences and solve mutually exclusive applications for ini- meetings, and directs and coordinates the FC- tial licenses unless certain exemptions apply, C’s preparation for such conferences and including exemptions for public safety radio meetings. services, digital television licenses to replace The IB also coordinates the international analog licenses, and non-commercial educa- coordination of spectrum allocations and fre- tional and public broadcast stations. quency and orbital assignments to minimize In arriving at new policies, regulations, cases of international radio interference in- and procedures, the FCC generally reaches its volving U.S. licensees. decisions after public notice and comment proceedings. In some cases, the FCC will file Enforcement Bureau (EB): The EB is the a notice of inquiry to gain information for de- primary organizational unit within the FCC veloping a new policy. However, when it has responsible for enforcement of provisions of the information needed, the FCC, in a notice the Communications Act, FCC rules, FCC or- of proposed rulemaking, will propose specific ders, and terms and conditions of station au- procedures or policies for comment by the in- thorizations. Major areas of enforcement han- terested public. Parties affected by an FCC dled by the EB are: (1) consumer protection proposal may file formal documents com- enforcement, (2) local competition enforce- menting on the FCC’s proposed actions and ment, and (3) public safety/homeland security inquiries, as well as on the comments submit- enforcement. ted by other affected parties. The EB investigates alleged violations of The FCC reviews the material provided the FCC’s technical, operational, and compet- by the various commenters from technical, le- itive rules, and recommends or issues appro- gal, and policy standpoints and reaches a de- priate enforcement actions. The bureau also cision on whether to seek more information or to issue a new rule in an order.

12 SECTION 3 – RECOMMENDA- TIONS AND ANALYSIS

The following recommendations are based Rationale on suggestions and comments from commercial, state and local government, and As described in Section 2, NTIA and the other spectrum users; academics and other FCC share jurisdiction over radio frequency experts; and the general public received in spectrum management. Commenting parties a series of public hearings and filings with differed on whether centralized oversight the Department of Commerce. These rec- would produce a more coordinated and effi- ommendations have been refined by the cient spectrum management system.26 Some Department of Commerce and reviewed by commenters expressed concern that Executive agencies across the federal government. Branch control over commercial spectrum would reduce transparency and politicize de- FACILITATE A MODERNIZED AND IMPROVED cisions.27 Other commenters stressed that the SPECTRUM MANAGEMENT SYSTEM. existing dual-jurisdiction system could be en- hanced by improving coordination between Recommendation 1. Establish the Depart- the FCC and NTIA. ment of Commerce Spectrum Man- A broad-based Department of Commerce agement Advisory Committee Advisory Committee (Committee) established and operated under the provisions of the Fed- The National Telecommunications and In- eral Advisory Committee Act would satisfy formation Administration (NTIA) should es- many stakeholder concerns with the existing tablish the Department of Commerce Spec- process. Because a federal advisory commit- trum Management Advisory Committee, con- tee operates according to notice and public sistent with the Federal Advisory Committee participation requirements, such a committee Act and the NTIA Organization Act.25 This would satisfy stakeholder concerns that the Committee would report to the Assistant Sec- spectrum management process be as transpar- retary for Communications and Information. ent and open as possible. The Committee would be comprised of a The Committee would provide private- broad range of stakeholders including repre- sector input to inform NTIA’s decision-mak- sentatives from state, regional, and local sec- ing on spectrum matters that affect commer- tors, industry, academia, and consumer cial interests. The Committee would recom- groups. The Federal Communications Com- mend reforms to the extent they are needed, mission (FCC) and the Department of Home- and promote increased understanding among land Security would be invited and encour- government and non-government users about aged to participate as appropriate. The Com- their different interests. Receiving informa- mittee would also advise the Assistant Secre- tion from a broad cross-section of stakehold- tary on needed reforms to domestic spectrum ers in an organized and coordinated manner policies and management to enable the intro- would be essential for the implementation of duction of new spectrum-dependent technologies and services, including policy reforms for 26 Compare Comments of Motorola, Inc., and Com- expediting the American public's access to ments of Wayne Longman (favoring structural reform), broadband services. with Comments of Cingular Wireless LLC (opposing change). 27 See, e.g., Comments of Nickolaus E. Leggett; Com- ments of Association of Public-Safety Communications 25 5 U.S.C. App. 2; 47 U.S.C. §§ 901-904. Officials-International (APCO). the recommendations of this report and the Recommendation 2. Review and Improve resolution of important domestic spectrum International Spectrum Manage- policy issues. Issues that could be addressed ment Policies by the Committee include: (a) Coordinate and Review Internation-  Broadband: Wireless local area services al Spectrum Policy and Framework. such as WiFi and wireless backbone NTIA, in coordination with other federal services like Wi-MAX have the potential agencies, including the State Department, the to make broadband available in hard-to- FCC, and industry, should review (1) policies serve areas, an important step in meeting and related international approaches regarding the President’s goal of universal, regional and global harmonization and inter- affordable broadband for every American operability of spectrum, and (2) the interna- by 2007. However, introduction of these tional regulatory and procedural framework to and other unlicensed services often remove barriers that prevent the timely imple- requires resolution of complex technical mentation of new spectrum-dependent tech- issues affecting both federal and non- nologies and services. federal spectrum. The Committee would provide a forum for identifying and (b) Improve U.S. Processes for World discussing resolution of these technical Radiocommunication Conferences issues in a timely and proactive manner. (WRCs). NTIA, in coordination with the De-  Public Safety: The Committee could partment of State and other federal agencies, address public-safety spectrum should recommend improvements to the Unit- management issues of common concern to ed States WRC preparatory process, including state and local governments and the (1) establishing U.S. delegations and appoint- federal agencies. ing the head of the U.S. delegation earlier; (2)  Digital Television (DTV) Transition: The improving the process for gaining internation- Committee could serve as a useful forum al support for U.S. proposals to the confer- for all stakeholders to present issues ence; and (3) establishing a schedule for do- affecting the DTV transition. The current mestic implementation of the decisions deadline for the DTV transition is reached at WRCs. December 31, 2006, at which time 24 MHz of spectrum will be available for Rationale public safety services and 36 MHz of spectrum will be available for commercial International Spectrum Policy Framework wireless applications. Developing wireless broadband technologies, as well Many U.S. commercial and government as the ever-pressing need for additional operations are international in scope. The spectrum for public safety, make the need DOD, and other federal agencies increasingly for the rapid conclusion of this transition rely on global communications systems, and critical. The Committee could serve as a U.S. manufacturing and technology compa- forum for stakeholders to present and nies rely on international markets as the world resolve the issues that could delay this moves towards a seamless global market- transition. place. Thus, the U.S. approach to the international aspects of spectrum management is important to achieving U.S. goals of economic well-being and national security. The manner in which the United States develops positions, proposals, and strategies and interacts with other administrations and regional and international bodies is critical to achieving success

15 in supporting U.S. Government spectrum re- worked within organizations such as the Inter- quirements and maintaining U.S. leadership in national Civil Aviation Organization (ICAO) communications technology and service de- and the International Maritime Organization velopment. (IMO) to ensure that telecommunications systems supporting aviation and maritime safety Harmonization and Interoperability can interoperate on an international basis. However, in the commercial context, the Two key components of international United States has consistently supported tech- spectrum policy that must be reviewed are nological neutrality. U.S. manufacturers have U.S. policies regarding global and regional maintained consistent support for technical spectrum harmonization and technical inter- flexibility to allow evolution of technologies operability. Spectrum harmonization refers to and services, some of which afford more effi- consistent spectrum allocations for like ser- cient use of the spectrum and/or better quality vices across geographic regions (e.g., allocat- service. ing the same frequencies for 3G mobile ser- The attendant costs and benefits of harmo- vices in the United States and Europe). Inter- nization and interoperability only become operability refers to the identification of tech- manifest on a case-by-case basis. Establish- nical standards (as well as frequency alloca- ing a set policy towards interoperability and tions) that permit the operators of standard- harmonization, therefore, would unnecessarily ized equipment to communicate with one an- constrain U.S. advocacy in international fo- other (e.g., all equipment built to the APCO rums. Accordingly, U.S. spectrum policy 25 public safety standard that operates in the should coordinate the interests of federal same frequency bands can interconnect and agencies and industry in international spec- communicate). trum policy decision-making and balance the Given the increasing globalization of eco- costs and benefits of harmonization and inter- nomic and trade activity, U.S. Government operability in a flexible manner. and commercial interests often need to operate on a worldwide basis. Harmonization of Barriers to Implementation of New Technolo- spectrum allocations, regulations, and stan- gy dards for implementation of spectrum-dependent technologies may serve U.S. interests by The principal goals of U.S. international enabling economies of scale and increased spectrum policy are identifying and removing sales through international markets. barriers to the global implementation of U.S. However, there are instances where har- communications technology, increasing U.S. monization may disadvantage the developers consumer access to technologies, avoiding of U.S. technology and, at times, federal gov- harmful interference, and satisfying the re- ernment entities. For example, some of the quirements for U.S. Government missions frequency bands used by the U.S. Govern- globally. International and regional organiza- ment for radar systems do not require interna- tions are the fora where U.S. technologies will tional allocations. Requiring those systems to be supported or hindered. The United States be designed and built to an international fre- has traditionally led the way in spectrum tech- quency standard can reduce deployment flexi- nology innovation, and many new technolo- bility. gies require new spectrum allocations and/or Similar to spectrum harmonization, sys- regulations, both domestically and interna- tem interoperability generally requires fre- tionally. Many of these innovations are com- quency and technology harmonization. More- prised of new ideas that may fall outside the over, as with spectrum harmonization, re- international framework successfully used in quirements for interoperability of equipment the past to develop support for the introduc- present both benefits and costs for U.S. inter- tion of new spectrum uses. ests. For example, the United States has

16 Internationally, the need for review of the comprehensive report containing recommen- international regulatory framework for spec- dations for improvements to the WRC trum allocations was recognized in the adop- preparatory process based on comments re- tion of WRC-03 Resolution 951. This Reso- ceived in response to its requests. lution called for review of the existing radio regulations, with respect to the evolution of Recommendation 3. Develop and Promote existing, emerging, and future applications, the Use of Spectrum Management Tools systems, and technologies. The United States for Coordinating New Services and Manag- needs to assume an active role in this review ing Interference and seek to have the recommendations generated by the Initiative adopted by international (a) Develop Spectrum Management regulators, to the extent applicable. Tools. NTIA, in conjunction with the federal agencies, the FCC, and industry should devel- U.S. Preparations for World Radiocommu- op modern spectrum management tools. nication Conferences These tools would reduce the time required in coordinating new spectrum uses with incum- The Notice of Inquiry sought comment re- bents and in performing required analyses of garding the U.S. WRC preparatory process. potential interference associated with emerg- Comments called for increased high-level ing spectrum dependent technologies and ser- government participation, including addition- vices. The results produced through the use al staff expertise and greater inter-agency co- of these tools would inform and assist future operation.28 Some parties recommended es- spectrum management decision-making by tablishing early timelines for resolving disput- both NTIA and the FCC. ed items that arise in formulating a U.S. position.29 Many parties called for more continu- (b) Promote the Use of Spectrum Man- ity in WRC representation, advocating either agement Tools. NTIA, in conjunction with a permanent WRC ambassador, the appoint- the FCC, should promote the use of these ment of an ambassador earlier in the WRC tools by federal agencies, state and local preparatory process, or a permanent se- agencies, industry, and regulators in other nior-level State Department WRC position. countries. On the other hand, one party questioned whether a government official is always the Rationale best qualified to head a delegation.30 Other comments suggest the importance of outreach Consumer demand for spectrum is explod- to industry before the WRC meetings to ob- ing and new wireless services, many with tain support for U.S. objectives.31 broadband potential, are proliferating. To ac- The comments received in response to the commodate this rapid expansion of spectrum Notice of Inquiry parallel comments received uses, spectrum managers require effective last year in response to a separate Request for tools that allow them to perform their tasks Comments on improvements to the U.S. WRC effectively and efficiently. The use of these preparation process.32 NTIA is completing a tools will allow spectrum managers to accommodate new technologies resulting in further 28 See, e.g., Comments of the Satellite Industry Associ- ation (SIA Comments); Comments of the United States innovation to allow consumers to reap still International Telecommunication Union Association new benefits from spectrum use. (USITUA Comments). Both the FCC and NTIA have been study- 29 See, e.g.,USITUA Comments. ing and applying new approaches to measure 30 Comments of American Radio Relay League and mitigate interference interactions. Inter- (ARRL). 31 USITUA Comments. Request for Comment, 68 Fed. Reg. 60,646 (2003). 32 See NTIA, Improvements to the U.S. Preparation The comments received are available at http://www.nti- Process for World Radiocommunication Conferences, a.doc.gov/ntiahome/frnotices/2003/wrcrfc/index.html.

17 ested parties also offered a variety of perspec- allocated for use by several radio services. tives on how to characterize and measure po- However, a “one-size-fits-all” receiver stan- tential interference.33 Some commenters felt dard is not possible since receiver standards that measurement and mitigation tools would are often tailored to specific user require- clarify interference issues and increase the ments. For example, in aviation, there are regulatory certainty that parties seek and that unique certification standards necessary for spectrum users need to expand services and safety-of-life and other mission requirements. innovate.34 Some parties recommend that NTIA and others have recognized that receiv- state-of-the-art interference mitigation tech- er standards cannot replace interference pro- niques be considered as part of any long-term tection rules or active spectrum management spectrum planning process.35 of other performance factors.37 However, re- NTIA should examine these new tech- ceiver standards, judiciously implemented, nologies in a systematic fashion together with can potentially mitigate adjacent band inter- the FCC, other federal agencies, and industry. ference and expedite the introduction of new Developing these tools and techniques would services.38 support a regulatory environment that pro- NTIA and the FCC should work together vides needed certainty for the development to formulate common approaches to interfer- and expansion of new and existing services. ence mitigation techniques. For example, re- These efforts should consider the latest tech- ceivers should be designed with a receiver niques, such as the following: bandwidth no greater than that required for signal reception. In addition, receivers should Improve Receiver Standards operate satisfactorily in the expected and intended radio frequency (RF) environment. In NTIA adopted receiver interference im- creating receiver standards, consideration munity standards for many receivers used by should be given as to whether they should be federal agencies.36 These standards provide voluntary or mandatory and service-specific minimum receiver performance levels which or generic. can be used in planning and coordinating new services. NTIA has advocated that the FCC Employ Cognitive Radios establish similar interference immunity stan- Some interest has been shown in explor- dards for commercial services for receivers ing the use of cognitive radios, including set- operating in portions of the spectrum that are ting aside a spectrum band for this purpose, as a means of solving interference issues and 33 See e.g., SIA Comments (advocating use of “permis- promoting spectrum efficiency.39 These tech- sible interference” standard); Motorola Comments (interference mitigation must be addressed from an over- nologies include the ability of devices to all system perspective). sense spectrum use by neighboring devices, 34 See, e.g., Motorola Comments (favoring a more change frequency, adjust output power, and quantitative approach to interference); Industrial even alter transmission parameters and char- Telecommunications Association (ITA) Comments (fa- acteristics. Cognitive radio technologies en- voring interference standards); APCO Comments (more robust and sophisticated interference measure- able a radio device and its antenna to adapt ments would allow greater spectrum sharing). spectrum use in response to the operating en- 35 ARRL Comments. vironment. The technology provides a way for 36 This does not refer to any particular receiver design standard. Rather, it refers to the environment within 37 See, e.g., Motorola Comments; Comments of Lucent which the receiver must be able to fully perform. This Technologies (Lucent Comments). environment includes the physical placement and RF 38 See Lucent Comments (advocating voluntary receiv- emissions of all systems likely to be in operational er standards, with performance characteristics tailored range, as well as the spectrum over which the receiver to specific service situations). can receive energy. See generally Interference Immuni- 39 But cf. APCO Comments (cognitive radios should ty Performance Specifications for Radio Receiver, No- not be authorized for critical public safety applications tice of Inquiry, ET Docket No. 03-65, 18 F.C.C. Rcd. until they have successful operational records in other 6039 (2003). services).

18 a radio device/antenna to operate on other- culties that may arise in applying the interfer- wise unusable spectrum. The FCC has recog- ence temperature concept and related ap- nized that cognitive radio technologies can proaches in concrete situations. make possible more intensive and efficient Characterize New Technologies spectrum use within a licensee’s network or between users who share spectrum. NTIA A systematic approach to analyzing the and FCC spectrum managers should combine potential interference interactions associated efforts to better understand the promise and with new spectrum-dependent technologies limitations of this new technology. would expedite their implementation. NTIA and the FCC should cooperate to clarify for new entrants what information is essential to Clarify Interference Temperature obtaining an expedited analysis of the poten- Interference temperature is an approach tial interference associated with proposed for addressing interference that takes into ac- spectrum uses. This essential information count the cumulative radio frequency energy should include a description of the physical from transmissions of spectrum-based de- architecture, and the new technology’s physi- vices. Current interference analyses focus on cal and operational characteristics. Once de- specifying and limiting the transmission pow- veloped, proponents of new technologies er of individual spectrum-based devices as the would be required to submit this essential in- primary method for avoiding interference. In formation prior to receiving approval for im- contrast, an interference temperature approach plementation. quantifies interference levels at the user’s receiver and sets a maximum cap on the aggre- gate of these transmissions. The interference temperature approach may facilitate more in- Protect Passive Scientific Uses tensive use of the radio spectrum, creating the opportunities for new services and improving Unlike many communications applica- the predictability of any interference to exist- tions that can operate in more than one band ing services. of spectrum, passive scientific uses are often The interference temperature concept limited by laws of physics to operate in a spe- holds potential for permitting some promising cific band of spectrum. These receive-only new technologies to coexist with some incum- services such as Radio Astronomy Service bent services. The FCC is conducting a rule- (RAS) or Earth Exploration Satellite Service making on this concept.40 NTIA, along with (EESS) “listen” for emissions from deep the federal agencies, is developing comments space and nature that are emitted at a particu- in this proceeding in light of the potential im- lar frequency. They are acutely vulnerable to pact to federal government operations and the out-of-band and spurious emissions from immaturity and complexity of the concept. neighboring services. Spectrum managers NTIA believes that a significant amount of need to take steps to protect these frequencies, study will be required before any implementa- particularly from developing technologies, tion of this concept can be made. It is appar- such as cognitive radios, that “listen” for oth- ent that the FCC, NTIA, the federal agencies, er users of the spectrum before operating. Be- and industry will have to work together to cause passive sensor systems are “receive-on- clarify, and if appropriate, resolve any diffi- ly,” they may not be identified by cognitive radios, which may then transmit in these 40 See Establishment of an Interference Temperature bands causing interference to scientific sys- Metric to Quantify and Manage Interference and to tems. Expand Available Unlicensed Operation in Certain Fixed, Mobile and Satellite Frequency Bands, Notice of Inquiry and Notice of Proposed Rulemaking, ET Docket No. 03-237, 18 F.C.C. Rcd. 25309 (2003).

19 Recommendation 4. Promote Spectrum man, recognizing the need for a highly-trained Management Training staff capable of adapting to technological change, instituted engineering recruitment and The FCC and NTIA should jointly devel- training programs.42 There is a similar need op training programs for new spectrum man- for such training throughout the spectrum agement personnel. These training programs management community. Indeed, expansion and materials should be made available to of the engineering training at both the FCC spectrum managers in federal government and NTIA would enhance the ability of these agencies, to non-federal government agencies agencies to respond quickly to and, indeed, (state, regional, and local), and to those orga- anticipate the implementation of new tech- nizations designated by the FCC to coordinate nologies. uses of the spectrum. In response to these requirements, some parties have suggested common training pro- Rationale grams for federal, state, regional, and local spectrum managers under NTIA’s auspices, Spectrum managers throughout the federal as well as the development of model best agencies, state and local government, and in practices.43 Participants in NTIA’s Public the frequency coordinator organizations des- Safety meeting stressed the need for addition- ignated by the FCC, are responsible for ensur- al spectrum management expertise at the ing their agency or their constituents accom- state, regional, and local levels. Some noted plish their mandated missions through an effi- that the pool of knowledgeable spectrum cient use of the radio frequency spectrum re- managers has dwindled. Many stated that the source. To satisfy this responsibility, spec- user community, particularly smaller public trum managers must not only understand cur- safety agencies, lack knowledge of spectrum rent spectrum-dependent technologies, but planning and processes, and the ability to per- also understand the likely interference interac- form long- range spectrum planning. By tions between the services provided by in- building in-house expertise, local agencies cumbent spectrum users and the services en- can make more informed choices on equip- visioned to be provided through the use of ment purchases and on other spectrum man- cutting-edge technologies. Developing mod- agement issues. Many participants at the ernized training programs for federal govern- Public Safety Meeting called for increased ed- ment spectrum managers, and making these ucation, training, and outreach to help devel- programs available to state and local govern- op a new generation of knowledgeable spec- ments as well as private-sector entities would trum managers. Local agencies could also ex- ensure that all spectrum managers operate plore partnerships and cooperative programs from a common frame of technical and ana- with universities as additional education op- lytical reference.41 tions. Spectrum managers must be able to use the latest spectrum management analysis CREATE INCENTIVES FOR MORE EFFICIENT tools. Spectrum managers must also be aware AND BENEFICIAL USE OF SPECTRUM AND of the commercial services available that could satisfy their functional requirements for 42 Michael K. Powell, FCC Chairman, Testimony be- spectrum services. fore the Subcommittee on Commerce, Justice, State and the Judiciary of the Committee on Appropriations, There is also a need for additional spec- United States Senate (Mar. 7, 2002). trum management expertise. The FCC Chair- 43 See e.g., AARL Comments (NTIA should sponsor a training program for new entrants similar to the pro- 41 In recognition of the importance of proper training gram it runs with the U.S. Telecommunications Train- for spectrum management personnel, the First Report ing Institute for foreign officials); FCCA Comments recommends that the FCC and NTIA jointly develop (NTIA should provide spectrum management training such programs. See First Report, supra note 13, Rec- to FCC-designated state and local frequency coordina- ommendation 4, at ii, tors).

20 POLICIES TO PROVIDE A HIGHER DEGREE OF Auctions for commercial spectrum lever- PREDICTABILITY AND CERTAINTY FOR age market forces to encourage more efficient INCUMBENT SPECTRUM USERS spectrum use and recover the value of the spectrum for the U.S. Treasury. The FCC’s Recommendation 5. Establish Economic current auction authority expires in 2007. and Regulatory Incentives The President’s Fiscal Year 2005 Budget proposes legislation that would make that auction (a) Encourage Congress to Enact Legis- authority permanent and also grant the FCC lation to Increase Incentive Authority. The authority to use other economic mechanisms, Administration should continue to encourage such as fees, as a spectrum management tool. Congress to enact legislation that provides the The President’s Budget proposes that the FCC FCC with permanent authority to conduct initiate a rulemaking to determine the appro- spectrum auctions for licenses and to collect priate application and level of fees, and phase fees for spectrum use. This proposed legisla- them in over time. Fees are a means of ap- tion would support incentives for efficient use proxi-mating the opportunity cost of using of the spectrum. The Administration should spectrum in a free market, and ensuring effec- also continue to support legislation that would tive and efficient spectrum use. establish a spectrum relocation fund that In addition, the Administration supports would streamline the process for reimbursing legislation that would expedite the transfer of government spectrum users to facilitate their 45 MHz of federal government spectrum in relocation to comparable spectrum. the 1710 to 1755 MHz band for advanced wireless services by creating a spectrum relo- (b) Establish Economic Incentives. cation fund. Advanced wireless services have Once enacted into law, the FCC and NTIA extraordinary potential, including the offering should use the statutory authorities described of mobile broadband services to consumers. in (a) to develop increased economic incen- The bill would create a fund from the auction tives for efficient spectrum use. In addition to proceeds of this spectrum to pay the costs market-based incentives, like auctions and necessary to relocate federal government lease fees, the FCC should consider expand- users to other means of transmission, thus fa- ing the application of secondary markets cilitating the transition to commercial use. across services. Regulatory Incentives (c) Examine Spectrum Rights as Incen- tives. NTIA, in conjunction with the FCC NTIA and the FCC can also create regula- should, through appropriate rulemaking pro- tory incentives for more efficient uses of cesses, examine the possibility of modifying spectrum. These incentives would include of- spectrum rights as a means to encourage the fering access to otherwise unavailable spec- deployment of spectrally efficient technolo- trum to entities deploying demonstrably non- gies. These rulemakings should consider, interfering technologies, as well as limiting among other things: (i) granting access to new the interference protection and spectrum bands of spectrum to users deploying demon- rights afforded to incumbents using inefficient strably non-interfering technology; and (ii) technologies. The following recent experi- limiting the interference protection afforded ences demonstrate the effectiveness of these to incumbents using inefficient technologies. regulatory incentives. In February 2003, NTIA reached an Rationale agreement with the private sector and the DOD on a technical solution that will permit Economic Incentives unlicensed broadband services to operate in bands previously assigned to government radar systems in the 5 GHz band. This agree-

21 ment requires any private-sector entity seek- Technologies and Innovation ing access to the 5 GHz band to demonstrate effective Dynamic Frequency Selection (a) Identify and Analyze New Technolo- (DFS) capabilities. DFS capability enables gies. NTIA, working with the FCC and re- the unlicensed systems to sense the presence search and development laboratories in the of government radar emissions and shut down federal government and industry, should de- or change frequencies when the government velop improved approaches for assessing the systems are in operation. potential impact of emerging technologies and As long as the demonstration of non-inter- expanded services in a timely manner. This ference is made with rigorous, verifiable tech- activity would include the identification of nical support, this type of regulatory incentive emerging technologies and expanded opportu- could be expanded. Rulemakings in this re- nities for government/industry cooperation. gard should not be limited to granting commercial access to government spectrum. Non- (b) Develop Spectrum Sharing and In- interfering federal government technologies novation Test-Bed. The FCC and NTIA, in should be considered for access to non-federal coordination with federal agencies, should de- allocations, including commercial bands. velop a plan to increase sharing of spectrum NTIA has also established a plan to ensure between federal government and non-federal that federal agencies deploy land mobile tech- government users. Within two years of this nologies that are at least as efficient as cur- report’s publication, NTIA and the FCC rently available commercial systems. This should establish a pilot program to allow for plan requires the federal agencies to transition increased sharing between federal and non- from equipment employing 25 kHz channels federal users. NTIA and the FCC should each to equipment employing 12.5 kHz channels – identify a segment of spectrum of equal band- effectively doubling the number of channels width within their respective jurisdiction for available for future use. Agencies that fail to this program. Each segment should be ap- make the transition to narrowband equipment proximately 10 MHz for assignment on a will revert to secondary status and will not be shared basis for federal and non-federal use. afforded protection from narrowband systems. The spectrum to be identified for this pilot Because most commercial licenses are program could come from bands currently al- granted for a ten-year period, new technology located on either an exclusive or shared basis. has often developed by the time licenses are Two years after the inception of the pilot pro- due for renewal. The FCC should consider gram, NTIA and the FCC should provide re- requiring licensees to transition to more effi- ports outlining the results and suggesting ap- cient technology as a condition of license re- propriate procedures for expanding the pro- newal, where appropriate. Such a require- gram as appropriate. ment would not necessarily require licensees to replace useful equipment, but rather could Rationale require licensees to transition to more efficient equipment when existing equipment is Responsible spectrum management should replaced at the end of its useful life-cycle. recognize the power of new technologies. In- novative wireless services, such as ultra-wide- DEVELOP POLICY TOOLS TO STREAMLINE THE band, WiFi, and Wi-MAX, promise to make DEPLOYMENT OF NEW AND EXPANDED broadband more universally accessible. Other SERVICES AND TECHNOLOGIES WHILE pioneering technologies will certainly devel- PRESERVING NATIONAL AND HOMELAND op. U.S. spectrum policy must balance the SECURITY, AND PUBLIC SAFETY, AND benefits to commerce and industry that result ENCOURAGING SCIENTIFIC RESEARCH. from the introduction of such cutting-edge technologies with the benefits that protection Recommendation 6. Support Emerging for incumbents affords.

22 Spectrum policymakers must not only an- Computerization and automation would help ticipate, but must also help create an environ- streamline these functions. Indeed, most li- ment for important new technology develop- cense applications are now filed electronical- ments. NTIA should take the lead in coordi- ly, and online databases permit access to most nating a network of laboratories in the federal license information. Automated frequency government and in the private sector. Coordi- coordination systems have been installed in nating information developed in private and some cases and are under development in oth- federal laboratories would provide the techni- ers. Although not every case or every facet of cal information necessary to allow standards spectrum management lends itself to electron- committees, regulators, and policymakers to ic processing, maximum practical use of cur- make meaningful decisions regarding the in- rent information technology would save spec- terference and sharing potential of new tech- trum managers and users time and money. nologies. The following are specific courses of action Based on experience gained from this that should be taken to modernize spectrum government/industry coordinated effort, the management processes. federal government should consider other Standardize Web-Based Coordination of Fre- methods of increasing government/industry quency Assignments research into new technologies. In order to explore the real-world poten- NTIA and the FCC have recently begun a tial of increased technical cooperation be- demonstration project for web-based coordi- tween government and industry, NTIA and nation of frequency assignments in the 70, 80, the FCC should establish a pilot program to and 90 GHz bands. NTIA and the FCC allow for sharing in two segments of spectrum opened these bands for commercial use in of approximately 10 MHz. This approximate- 2003. When fully operational, non-federal ly 20 MHz of spectrum would provide a field providers can use this web-based coordination to test the potential of new technologies that system to obtain approvals to operate in min- increase the efficient use of spectrum through utes. increased sharing. This model of web-based interagency coordination should be expanded to shared fre- Recommendation 7. Improve Information quency bands whenever practical, with the Technology to Modernize Spectrum goal of making web-based coordination the Management standard model. NTIA and the FCC should work together to develop jointly accepted NTIA and the FCC should promote use of models and methodologies to assess and test advanced information technology (IT) capa- the impact of new technologies. Where bands bilities to replace existing manual procedures are exclusively assigned to federal govern- used in the coordination and licensing pro- ment or non-federal uses, the respective over- cesses, including the coordination of NTIA sight agencies or voluntary coordinators and FCC certification and licensing databases. should use online coordination practices for Improving these spectrum management oper- intra-band or adjacent frequency coordination ations would result in more timely responses to the extent practicable. to proposals from both the federal agencies Improve the Universal Licensing System and the commercial sector for new spectrum (ULS) and Other FCC Filing Systems uses. The FCC currently uses on-line applica- Rationale tion systems, including the Universal Licens- ing System (ULS) for wireless licensees and Many aspects of spectrum coordination, the International Bureau Filing System (IBFS) assignment, and licensing involve computa- for satellite systems. These systems can be tional analyses and methodical cross-checks. improved. First, to ensure accuracy, the FCC

23 should update application status on a weekly Information Systems Agency (DISA) to form basis. Second, the FCC should reform the a partnership to coordinate the ULS and ULS system to make it easier and simpler to SPECTRUM XXI systems. NTIA and the use for entities with limited resources. Public FCC should strive towards a longer-term goal safety agencies have pointed out that the FCC of creating a single, overarching spectrum license application is difficult for small to management automation architecture for FCC medium-sized agencies to complete. Third, and NTIA frequency assignment and licens- the FCC should endeavor to make the ULS ing processes. This single architecture could more responsive to routinely received waiver include electronic preparation of all frequency requests. assignment and license applications; electron- Encourage the FCC to Consider Computer ic exchange of standardized common data ele- Assisted Pre-Coordination Resource and ments; automated analysis including engi- Database System (CAPRAD) neering tools, interference analysis, and spectrum occupancy; and standardized edit and Current law requires that television broad- validation checks. casters switch from analog to digital broadcasting television by the end of 2006, or when ADDRESS CRITICAL SPECTRUM NEEDS OF 85 percent of the households in a market are NATIONAL SECURITY, HOMELAND SECURITY, capable of receiving a digital signal, which- PUBLIC SAFETY, FEDERAL TRANSPORTATION ever is later. To facilitate public safety plan- INFRASTRUCTURE, AND SCIENCE. ning for the digital television (DTV) transition, public safety entities have participated in Recommendation 8. Encourage Long- a voluntary pre-clearance coordination sys- Range Spectrum Planning tem, also known as CAPRAD, for the 700 MHz band at issue. The National Institute of State, regional, and local government Justice administers CAPRAD. Because it is agencies should be encouraged to establish voluntary, however, CAPRAD lacks some of long-range spectrum planning processes and the data necessary for frequency coordination, to take into account the federal long-range interference prevention, and spectrum plan- plans. The Department of Commerce Spec- ning. Some public safety users recommend trum Management Advisory Committee that use of CAPRAD be mandatory. In light would assist with this activity, ensuring that of the importance of the DTV transition to NTIA, DHS, and participating entities remain public safety interoperability and to national appropriately informed about current spec- broadband deployment, the FCC should con- trum trends and issues. sider this recommendation. Standardize Federal and Non-Federal Fre- Rationale quency Assignment Databases The United States needs to manage its Currently, the ULS and the federal gov- spectrum resources in the most effective and ernment’s frequency assignment system, efficient way possible. The Notice of Inquiry SPECTRUM XXI, are incompatible. Because sought comment on using a long-range spec- the majority of all spectrum is allocated on a trum planning process to accomplish this shared basis for both federal and non-federal goal. Responding parties were near unani- use, many frequency assignments require co- mous in their approval. ordination between NTIA and the FCC. Inte- Improving the long-range spectrum plan- gration of ULS, IBFS, and other FCC filing ning of federal, state, and local governments systems with SPECTRUM XXI would yield and the private sector is an essential compo- obvious advantages. nent for improving overall federal spectrum NTIA should work with the FCC and the management policies. The First Report con- Joint Spectrum Center (JSC) of the Defense tains recommendations for improved long-

24 range planning by the federal agencies, as (c) Address Public Safety Spectrum well as the development of a National Strate- Shortage, Interference, New Technology gic Spectrum Plan.44 The First Report also and Security Issues. Based on the results of encourages the FCC to adopt similar long- the examination in (a), DHS, in coordination range planning processes to allow structured with NTIA, the FCC, regional, state, and local evaluation and timely deployment of newly governments, and representatives from the evolving spectrum dependent technologies. private-sector public safety community, The separate plans of federal agencies and should develop a comprehensive plan to ad- those of state, regional, and local agencies, dress the fragmentation, shortage, interfer- and the private sector as outlined by the FCC, ence, and security issues related to communi- should be harmonized and coordinated. This cation spectrum used by the public safety would ensure that both the federal govern- community. ment and non-federal frameworks for spectrum complement each other. Rationale

Recommendation 9. Identify and Address Many public safety and first responder Unsatisfied Spectrum Requirements groups face communication and interoperabil- for Public Safety ity challenges. It is an important first step to inventory public safety spectrum use, deter- (a) Identify Unsatisfied Spectrum Re- mine what needs are not being met, and iden- quirements. NTIA, in conjunction with the tify ways to make public safety spectrum use FCC, DHS, officials from regional, state, and more efficient. A coordinated plan to address local governments, and representatives from the fragmentation, shortage, interference, and the private-sector public safety community security issues identified through the invento- should inventory spectrum use by the public ry will allow the public safety community, safety community: identify the major public federal and non-federal, to reach interoperable safety requirements for spectrum-dependent solutions. These challenges include con- services that are not being satisfied by facili- straints on the ability to expand existing sys- ties owned and operated by regional, state, tems as well as the ability to deploy new and local government agencies; and determine broadband technologies. Because federal if current spectrum use is efficient and identi- public-safety agencies and their state and lo- fy ways to make public safety use more effec- cal counterparts often rely on similar tech- tive. nologies operating in adjacent or near-adjacent bands, there may be the potential for in- (b) Develop a Federal/Non-Federal creased sharing across federal and non-federal Public Safety Demonstration Program. bands. NTIA should examine the feasibility of shar- Beyond frequency sharing, there may also ing spectrum among commercial, federal and be opportunities for federal, state, and local local public safety, and critical infrastructure public safety entities to construct shared sys- applications, including the possibility of leas- tems. By pooling spectrum, fiscal, and tech- ing services. NTIA should develop and im- nical resources, these public safety entities plement one or more demonstration programs may realize significant efficiencies. Such to test the operational and cost effectiveness shared systems may be expanded beyond gov- of sharing spectrum and communications in- ernmental entities to include private-sector frastructure between federal, state, and/or lo- entities with critical infrastructure protection cal governments and private users. responsibilities. The FCC has authorized several systems around the country that operate on both non-federal government public safety 44 See, First Report, supra note 11 (discussion of Rec- and critical infrastructure frequencies. Ex- ommendations 5, 6 and 9). panding these systems to include federal gov-

25 ernment public-safety frequencies could increase the efficiencies gained.

26 APPENDIX A – PRESIDENT’S MEMORANDUM AND FACT SHEET

A-1 For Immediate Release Office of the Press Secretary June 5, 2003

Presidential Memo on Spectrum Policy Memorandum for the Heads of Executive Departments and Agencies Subject: Spectrum Policy for the 21st Century

The radio frequency spectrum is a vital and limited national resource. Spectrum contributes to significant technological innovation, job creation, and economic growth, and it enables military operations, communications among first responders to natural disasters and terrorist attacks, and scientific discovery.

Recent years have witnessed an explosion of spectrum-based technologies and uses of wireless voice and data communications systems by businesses, consumers, and Government. Today there are over 140 million wireless phone customers and, increasingly, businesses and consumers are installing systems that use unlicensed spectrum to allow wireless data, called Wireless Fidelity (WiFi), on their premises. The Federal Government makes extensive use of spectrum for radars, communications, geolocation/navigation, space operations, and other national and homeland security needs. We must unlock the economic value and entrepreneurial potential of U.S. spectrum assets while ensuring that sufficient spectrum is available to support critical Government functions.

The existing legal and policy framework for spectrum management has not kept pace with the dramatic changes in tech-nology and spectrum use. Under the existing framework, the Government generally reviews every change in spectrum use, a process that is often slow and inflexible, and can discourage the introduction of new technology. Some spectrum users, including Government agencies, maintain that the existing spectrum process is insufficiently responsive to the need to protect current critical uses.

My Administration is committed to promoting the development and implementation of a U.S. spectrum policy for the 21st century that will: (a) foster economic growth; (b) ensure our national and homeland security; (c) maintain U.S. global leadership in communications technology development and services; and (d) satisfy other vital U.S. needs in areas such as public safety, scientific research, Federal transporta-tion infrastruc-ture, and law enforcement. My Administration has already proposed several legislative changes or program initiatives to improve elements of the spectrum management process. These proposals would greatly enhance the Governments ability to efficiently manage spectrum. To further promote the development and implementation of a U.S. spectrum policy for the 21st century, I hereby direct the following:

Section 1. Establishment. There is established the "Spectrum Policy Initiative" (the "Initiative") that shall consist of activities to develop recommendations for improving spectrum management policies and procedures for the Federal Government and to address State, local, and private spectrum use. The Secretary of Commerce shall chair and direct the work of the Initiative. The Initiative shall consist of two courses of spectrum-related activity: (a) an interagency task force that is created by section 3 of this memorandum; and (b) a series of public meetings consistent with section 4 of this memorandum. The interagency task force and the public meetings shall be convened under the auspices of the Department of Commerce and used by the Department to develop spectrum management reform proposals.

Sec. 2. Mission and Goals. The Initiative shall undertake a comprehensive review of spectrum management policies (including any relevant recommendations and findings of the study conducted pursuant to section 214 of the E- Government Act of 2002) with the objective of identifying recommendations for revising policies and procedures to promote more efficient and beneficial use of spectrum without harmful interference to critical incumbent users. The Department of Commerce shall prepare legislative and other recommendations to:

A-2 (a) facilitate a modernized and improved spectrum management system;

(b) facilitate policy changes to create incentives for more efficient and beneficial use of spectrum and to provide a higher degree of predictability and certainty in the spectrum management process as it applies to incumbent users;

(c) develop policy tools to streamline the deployment of new and expanded services and technologies, while preserving national security, homeland security, and public safety, and encouraging scientific research; and

(d) develop means to address the critical spectrum needs of national security, homeland security, public safety, Federal transportation infrastructure, and science.

Sec. 3. Federal Government Spectrum Task Force. There is hereby established the Federal Government Spectrum Task Force (the "Task Force") to focus on improving spectrum management policies and procedures to stimulate more efficient and beneficial use of Government spectrum. The Secretary of Commerce, or the Secretary's designee under this section, shall serve as Chairman of the Task Force.

(a) Membership of the Task Force. The Task Force shall consist exclusively of the heads of the executive branch departments, agencies, and offices listed below:

(1) the Department of State;

(2) the Department of the Treasury;

(3) the Department of Defense;

(4) the Department of Justice;

(5) the Department of the Interior;

(6) the Department of Agriculture;

(7) the Department of Commerce;

(8) the Department of Transportation;

(9) the Department of Energy;

(10) the Department of Homeland Security;

(11) the National Aeronautics and Space Administration;

(12) the Office of Management and Budget;

(13) the Office of Science and Technology Policy;

(14) such other executive branch departments, agencies, or offices as the Chairman of the Task Force may designate; and

(15) subject to the authority of the Director of the Office of Management and Budget, the Office of Project SAFECOM.

A-3 A member of the Task Force may designate, to perform the Task Force functions of the member, any person who is a part of the member's department, agency, or office, and who is a full-time officer or employee of the Federal Government.

(b) Functions of the Task Force. The functions of the Task Force are advisory and shall include, but are not limited to, producing a detailed set of recommendations for improving spectrum management policies and procedures to stimulate more efficient and beneficial use of spectrum by the Federal Government. The recommendations shall be consistent with the objectives set out in section 2 of this memorandum. The Task Force may hold meetings to obtain information and advice concerning spectrum policy from individuals in a manner that seeks their individual advice and does not involve collective judgment or consensus advice or deliberation. At the direction of the Chairman, the Task Force may establish subgroups consisting exclu-sively of Task Force members or their designees under this section, as appropriate.

Sec. 4. Recommendations to Address State, Local, and Private Spectrum Use. Consistent with the objectives set out in section 2 of this memorandum, the Department of Commerce, separately from the Task Force process, shall, in accordance with applicable law, conduct public meetings that will assist with that Departments development of a detailed set of recommen-dations for improving policies and procedures for use of spectrum by State and local governments and the private sector, as well as the spectrum management process as a whole. These meetings will involve public events to provide an opportunity for the input of the communications industry and other interested parties. Partici-pants may include spectrum users, wireless equipment vendors, financial and industry analysts, economists, technologists, and consumer groups. Interested Federal, State, and local government agencies will be welcome to attend and participate. The Federal Communications Commission is also encouraged to participate in these activities and to provide input to the National Telecommunications and Information Administration at the Department of Commerce on these issues.

Sec. 5. Reports. The Secretary of Commerce, or the Secretary's designee, shall present to me, through the Assistant to the President for Economic Policy and Director of the National Economic Council and the Assistant to the President for National Security Affairs, in consultation with the Assistant to the President for Homeland Security, two separate reports no later than 1 year from the date of this memorandum, one of which shall contain recommendations developed under section 3 of this memorandum by the Task Force and the other containing recommendations developed under section 4.

Sec. 6. General Provisions.

(a) The heads of Federal Government departments and agencies shall assist the Chairman of the Task Force established by section 3 and provide information to the Task Force consistent with applicable law as may be necessary to carry out the func-tions of the Task Force. Each Federal department and agency shall bear its own expense for partici-pating in the Task Force. To the extent permitted by law and within existing appropria-tions, the Department of Commerce shall provide funding and administrative support for the Task Force.

(b) Nothing in this memorandum shall be construed to impair or otherwise affect the functions of the Director of the Office of Management and Budget relating to budget, administrative, or legislative proposals.

Sec. 7. Judicial Review. This memorandum is intended only to improve the internal management of the Federal Government and is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or equity by a party against the United States, its departments, agencies, instrumentalities or entities, its officers or employees, or any other person. Sec. 8. Publication. The Secretary of Commerce is authorized and directed to publish this memorandum in the Federal Register.

GEORGE W. BUSH

A-4 For Immediate Release June 5, 2003

Fact Sheet on Spectrum Management

Taking Action to Improve Spectrum Management

Presidential Action

 President Bush signed an Executive Memorandum creating the Spectrum Policy Initiative to develop recommendations for improving spectrum management policies and procedures.  The Department of Commerce will chair the Initiative.  The purpose of the Initiative is to promote the development and implementation of a U.S. spectrum policy that will foster economic growth; ensure our national and homeland security; maintain U.S. global leadership in communications technology development and services; and satisfy other vital U.S. needs in areas such as public safety, scientific research, federal transportation infrastructure, and law enforcement.  The existing legal and policy framework for spectrum management has not kept pace with the dramatic changes in technology and spectrum use. The Spectrum Initiative will help develop a U.S. spectrum policy for the 21st century.

The Importance of Spectrum

 Spectrum contributes to significant innovation, job creation, and economic growth. It is vital to scientific discovery and technological advances. It is critical to the ability of first responders to react to natural disasters and terrorist attacks and essential to the military's ability to fulfill its mission of protecting our nation.  Recent years have witnessed enormous growth in spectrum-based technologies and uses of wireless voice and data communications systems by businesses, consumers, and government. Today, there are more than 140 million wireless phone customers and, increasingly, businesses and consumers are installing WiFi systems to allow wireless computing on their premises.  The federal government makes extensive use of spectrum for radars, communications, geolocation/navigation, space operations, and other national and homeland security priorities.

How the Initiative Will Work

 The Initiative is comprised of two activities: 1. The Federal Spectrum Task Force will produce a set of recommendations for improving spectrum management policies and procedures to increase the efficiency and beneficial use of spectrum by the federal government. 2. The Department of Commerce will hold a series of public meetings to assist in its development of a set of recommendations for improving policies and procedures for use of spectrum by state and local governments and the private sector.  Within one year, the Secretary of Commerce will provide the President recommendations to:

o Facilitate a modernized and improved spectrum management system;

A-5 o Facilitate policy changes to create incentives to increase the efficiency and beneficial use of spectrum and to provide a higher degree of predictability and certainty in the spectrum management process; o Develop policy tools to streamline the deployment of new and expanded services and technologies, while preserving national security, homeland security, public safety, and encouraging scientific research; and o Develop means to address the critical spectrum needs of national security, homeland security, public safety, federal transportation infrastructure, and science.

Building on a Foundation of Success

While the Initiative will facilitate improvements in spectrum management, the Administration has achieved significant successes within the current system.

 The Administration has identified new spectrum for advanced third generation (3G) wireless services and technologies for consumers. In July 2002, the Department of Commerce released a plan in concert with the Federal Communications Commission (FCC) and the Department of Defense to make 90 MHz of spectrum available in the future for 3G wireless services while accommodating critically important spectrum requirements for national security.  The Administration has identified how to make available additional spectrum at 5 GHz for wireless data communications, called Wireless Fidelity (WiFi). The Department of Commerce reached an agreement in February 2003 with the private sector and the Department of Defense on a technical solution that the United States is now able to present in international spectrum discussions.  The Administration, in conjunction with the FCC, approved the use of ultrawideband (UWB) technology, which enables broadband connections and assists in the performance of critical safety services. During 2002, the Department of Commerce worked closely with the FCC to authorize mechanisms to accommodate UWB wireless technology without causing serious impact to critical radio communications services.  The Administration has proposed several legislative changes and program initiatives to improve the spectrum management process, including: (1) providing the FCC with new authority to set user fees on unauctioned spectrum licenses; and (2) creating a Spectrum Relocation Fund to streamline the process for reimbursing government users, facilitate their relocation, and provide greater certainty to auction bidders and incumbents.

A-6 APPENDIX B – QUICK LOOK: RECOMMENDATIONS FROM STATE AND LOCAL GOVERNMENTS AND PRIVATE SECTOR RESPONDERS

B-1 RECOMMENDATIONS FROM STATE AND LOCAL GOVERNMENTS AND PRIVATE SECTOR RESPONDERS FOR IMPROVING SPECTRUM MANAGEMENT POLICIES

FACILITATE A MODERNIZED & IMPROVED SPECTRUM MANAGEMENT SYSTEM Action Agencies 1. Spectrum Management Advisory Committee – Establish an advisory committee of representatives from state, regional and local sec- 1. NTIA, FCC & Federal tors, industry, academia, and consumer groups along with an invitation to the FCC to advise the Assistant Secretary for Communications Agencies and Information, Department of Commerce on needed reforms to spectrum policies and management to enable introduction of new spectrum dependant technologies and services including expediting America’s access to broadband services 2. International Spectrum Management Policies– Coordinate and review international spectrum policy and framework and improve U.S. 2. NTIA, FCC, Federal processes for WRC. Agencies, & Industry Spectrum Management Tools for Coordinating New Services and Managing Interference – Develop spectrum management tools that 3. 3. NTIA, FCC, Federal will reduce the coordination time for new spectrum uses with incumbents and perform analysis of potential interference interactions; and Agencies, & Industry promote their use. 4. NTIA, FCC, Federal 4. Spectrum Management Training – Develop effective spectrum management training programs and a broad range of materials for use by Agencies, & Industry all spectrum managers. CREATE INCENTIVES FOR MORE EFFICIENT & BENEFICIAL USE OF SPECTRUM & POLICIES INCREASING Action Agencies PREDICTABILITY & CERTAINTY FOR INCUMBENT SPECTRUM USERS 5. Economic and Efficiency Incentives – Encourage Congress to enact legislation to provide FCC permanent auction authority and collect 5. Congress, Administration, fees for spectrum use; to establish incentives for spectrum efficiency; and to establish spectrum relocation fund. Using this authority, de- NTIA, and FCC velop increased economic incentives for spectrum efficiency and expand application of secondary markets across services. Examine spectrum rights through the rulemaking process as a means to encourage the deployment of spectrally efficient technologies. DEVELOP POLICY TOOLS TO STREAMLINE DEPLOYMENT OF NEW & EXPANDED SERVICES & TECHNOLOGIES WHILE Action Agencies PRESERVING NATIONAL & HOMELAND SECURITY & PUBLIC SAFETY, & ENCOURAGING RESEARCH 6. Emerging Technologies and Innovation – Develop improved approaches for assessing the potential impact of emerging technologies; 6. NTIA, Federal Govern- develop a plan to increase sharing of spectrum between federal government and non-federal government users; and establish a pilot pro- ment Laboratories, & In- gram to allow sharing of two 10 MHz segments of spectrum and provide reports outlining the results of the pilot. dustry 7. Information Technology to Modernize Spectrum Management – promote advanced information technology (IT) capabilities that would replace existing manual procedures used in the coordination and licensing processes to make these processes more timely. 7. NTIA and FCC MEET CRITICAL SPECTRUM NEEDS: NATIONAL & HOMELAND SECURITY, PUBLIC SAFETY, FEDERAL TRANSPORTATION Action Agencies INFRASTRUCTURE, & SCIENCE 8. Long-Range Spectrum Planning – Encourage state, regional, and local government agencies to establish long-range spectrum planning 8. NTIA and State, Regional processes and to take into account the federal long-range plans. and Local Government 9. Unsatisfied Spectrum Requirements for Public Safety – Inventory public safety spectrum use, identify and address the major require- Agencies ments for spectrum dependent services that are not being satisfied, determine spectrum efficiency and ways to make public safety more ef- 9. NTIA, FCC, DHS, and fective, and develop a federal/non-federal public safety demonstration program to test operational and cost effectiveness of sharing spec- State, Regional, Local trum and communication infrastructure. Government Agencies