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Wireless Issues and Spectrum Reform Hearing Committee

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Wireless Issues and Spectrum Reform Hearing Committee S. HRG. 109–686 WIRELESS ISSUES AND SPECTRUM REFORM HEARING BEFORE THE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION UNITED STATES SENATE ONE HUNDRED NINTH CONGRESS SECOND SESSION MARCH 14, 2006 Printed for the use of the Committee on Commerce, Science, and Transportation ( U.S. GOVERNMENT PRINTING OFFICE 29–935 PDF WASHINGTON : 2006 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 0ct 09 2002 11:39 Nov 22, 2006 Jkt 029935 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\WPSHR\GPO\DOCS\29935.TXT JACKF PsN: JACKF SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ONE HUNDRED NINTH CONGRESS SECOND SESSION TED STEVENS, Alaska, Chairman JOHN MCCAIN, Arizona DANIEL K. INOUYE, Hawaii, Co-Chairman CONRAD BURNS, Montana JOHN D. ROCKEFELLER IV, West Virginia TRENT LOTT, Mississippi JOHN F. KERRY, Massachusetts KAY BAILEY HUTCHISON, Texas BYRON L. DORGAN, North Dakota OLYMPIA J. SNOWE, Maine BARBARA BOXER, California GORDON H. SMITH, Oregon BILL NELSON, Florida JOHN ENSIGN, Nevada MARIA CANTWELL, Washington GEORGE ALLEN, Virginia FRANK R. LAUTENBERG, New Jersey JOHN E. SUNUNU, New Hampshire E. BENJAMIN NELSON, Nebraska JIM DEMINT, South Carolina MARK PRYOR, Arkansas DAVID VITTER, Louisiana LISA J. SUTHERLAND, Republican Staff Director CHRISTINE DRAGER KURTH, Republican Deputy Staff Director KENNETH R. NAHIGIAN, Republican Chief Counsel MARGARET L. CUMMISKY, Democratic Staff Director and Chief Counsel SAMUEL E. WHITEHORN, Democratic Deputy Staff Director and General Counsel LILA HARPER HELMS, Democratic Policy Director (II) VerDate 0ct 09 2002 11:39 Nov 22, 2006 Jkt 029935 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 S:\WPSHR\GPO\DOCS\29935.TXT JACKF PsN: JACKF C O N T E N T S Page Hearing held on March 14, 2006 ............................................................................ 1 Statement of Senator Allen ..................................................................................... 73 Statement of Senator Burns ................................................................................... 75 Statement of Senator Dorgan ................................................................................. 2 Statement of Senator Kerry .................................................................................... 14 Prepared statement .......................................................................................... 14 Statement of Senator Lautenberg .......................................................................... 2 Statement of Senator Lott ...................................................................................... 27 Statement of Senator Pryor .................................................................................... 71 Statement of Senator Stevens ................................................................................ 1 WITNESSES Hecker, JayEtta Z., Director, Physical Infrastructure Issues, U.S. Government Accountability Office ............................................................................................ 15 Prepared statement .......................................................................................... 17 Hubbard, Robert W., President/CEO, Hubbard Television Group; Vice Presi- dent, Hubbard Broadcasting, Inc.; Secretary/Treasurer, Association for Max- imum Service Television, Inc. ............................................................................. 40 Prepared statement .......................................................................................... 42 Kahn, Kevin C., Senior Fellow and Director, Communications Technology Lab, Intel Corporation ......................................................................................... 32 Prepared statement .......................................................................................... 34 Kenney, Jeannine, Senior Policy Analyst, Consumers Union; on behalf of the Consumers Union, Consumer Federation of America, and Free Press ..... 53 Prepared statement .......................................................................................... 55 Kneuer, John M.R., Acting Assistant Secretary for Communications and In- formation, National Telecommunications and Information Administration (NTIA) ................................................................................................................... 8 Prepared statement .......................................................................................... 10 Seidel, Catherine W., Acting Bureau Chief, Wireless Telecommunications Bu- reau, Federal Communications Commission ..................................................... 3 Prepared statement .......................................................................................... 6 Sugrue, Thomas J., Vice President, Government Affairs, T-Mobile USA, Inc. .. 49 Prepared statement .......................................................................................... 51 Walsh, Thomas F., General Manager, Illinois Valley Cellular; President of the Board, Rural Cellular Association ................................................................ 28 Prepared statement .......................................................................................... 30 White, Lawrence J., Co-Chair, Spectrum Policy Working Group, The Digital Age Communications Act (DACA) Project, Progress & Freedom Foundation (PFF); Professor of Economics, Stern School of Business, New York Univer- sity ......................................................................................................................... 64 Prepared statement .......................................................................................... 66 APPENDIX Inouye, Daniel K., U.S. Senator from Hawaii, prepared statement .................... 81 Joint prepared statement of Jerry Ellig, Ph.D., Senior Research Fellow/Jerry Brito, J.D., Legal Fellow, Mercatus Center, George Mason University .......... 88 Letter, dated March 14, 2006, to Hon. Ted Stevens and Hon. Daniel K. Inouye from a group of digital television and set top box manufacturers ....... 91 Response to written questions submitted by Hon. John D. Rockefeller IV, to Catherine W. Seidel ......................................................................................... 90 Shure Incorporated, prepared statement ............................................................... 81 (III) VerDate 0ct 09 2002 11:39 Nov 22, 2006 Jkt 029935 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 S:\WPSHR\GPO\DOCS\29935.TXT JACKF PsN: JACKF VerDate 0ct 09 2002 11:39 Nov 22, 2006 Jkt 029935 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 S:\WPSHR\GPO\DOCS\29935.TXT JACKF PsN: JACKF WIRELESS ISSUES AND SPECTRUM REFORM TUESDAY, MARCH 14, 2006 U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, Washington, DC. The Committee met, pursuant to notice, at 10 a.m. in room SD– 106, Dirksen Senate Office Building, Hon. Ted Stevens, Chairman of the Committee, presiding. OPENING STATEMENT OF HON. TED STEVENS, U.S. SENATOR FROM ALASKA The CHAIRMAN. Thank you for coming. We obviously will not have the presence of the Co-Chairman today, after his sad loss yes- terday. This is the tenth in the series of hearings on communica- tions. Today, we want to look at various wireless issues, including the use and management of spectrum. Spectrum is one of our most important national resources. Americans increasingly rely on its use daily for family communications, work, education, and enter- tainment. Moreover, wireless services are essential to the ability of first responders and the military to save lives and protect our homeland. In the past, Congress has responded to advances in technology and changes in the communications market by updating laws concerning the use and management of spectrum. In 1993 Senator Inouye and I participated in moving legislation through Congress that directed the FCC toward licenses by auction. And earlier this year, Congress set a hard date of February 17, 2009, for the DTV transition, which will provide spectrum for public safe- ty and wireless broadband service able to reach rural America. As part of the DTV legislation Congress at our request extended the FCC’s auction authority to September 30, 2011. Senator Allen and I have proposed legislation that will allow unlicensed wireless de- vices to provide new services over the unused or white spaces of television’s broadcast spectrum, so long as such devices did not cause harmful interference to TV service. Today, we hear whether Congress needs to address any particular wireless issue or further address spectrum reform. We have two panels. Let me call the first panel to the table if you will. Catherine Seidel, Acting Bureau Chief, Wireless Telecommunications Bureau of the FCC. Mr. John Kneuer, Acting Assistant Secretary for Communications and Infor- mation of NTIA. JayEtta Hecker, Director of Physical Infrastruc- ture of the U.S. Government Accountability Office, GAO. While you are there, let me turn to my colleague here, Senator Dorgan. (1) VerDate 0ct 09 2002 11:39 Nov 22, 2006 Jkt 029935 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 S:\WPSHR\GPO\DOCS\29935.TXT JACKF PsN: JACKF 2 STATEMENT OF HON. BYRON L. DORGAN, U.S. SENATOR FROM NORTH DAKOTA Senator DORGAN. Mr. Chairman, thank you very much. As is al- ways the case there are competing hearings. We have an appro- priations subcommittee hearing going on in another room,
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