Next Generation Networks Conference

Keynote Address: Next Generation Policy for

Next Generation Technologies

Michael D. GallagherActing Assistant Secretary

U.S. Department of Commerce

National Telecommunications

and Information Administration

www.ntia.doc.gov

Boston, Massachusetts

November 6, 2003

Economic IndicatorsThanks to the President’s policies, America is

once again growing:Real disposable personal income rose at a 2.6 percent annual growth rate in 2Q 2003.

Real GDP grew at a 3.3 percent annual rate during the second quarter.

This year, the S&P 500 is up over 18 percent.

The Dow Jones Industrial Average has risen more than 16 percent this year.

The NASDAQ Composite is ahead 45 percent.

The President will not be satisfied until every American who wants a job has a job.

Administration Commitment to Technology

Development "The role of government is not to create

wealth; the role of our government is to create an environment in which the entrepreneur can flourish, in which minds can expand, in which technologies can reach new frontiers."

-- President George W. Bush, Technology Agenda, November, 2002.

National Telecommunications and Information Administration

(NTIA) President’s Principal Adviser on Telecommunications and Information Policies/Agency of Commerce Department Authorizes Spectrum Use by Federal AgenciesOperates Telecommunications Research LaboratoryParticipates with State Dep’t and FCC in International Telecommunications ActivitiesAdministers Telecommunications Grant Programs

Growth of Telecommunications

(Selected Markets)

Revenues in Millions

Annual Percentage Growth

Source: Telecommunications Industry Association

0

50000

100000

150000

200000

250000

2000 2001 2002

Milli

ons

High-Speed Internet

Wireless Services

Spending on Services in Support of Voice & Data Comm. Equip.

0

50

100

150

200

250

2000 2001 2002

Perc

ent

High-Speed Internet

Wireless Services

Spending on Services in Support of Voice & Data Comm. Equip.

Focus on Communications Technology

Internet Tax Moratorium

IPv6

Cybersecurity

ENUM

Radiofrequency Spectrum

Internet Tax Moratorium

Less Regulation and Lower Taxes a Recipe for ProsperityBush Administration Worked to Keep Moratorium in Place – Wrote Key SenatorsCommerce Secretary Evans and Treasury Secretary Snow: “[The Moratorium] will Help Create an Environment for Innovation and Will Ensure that Electronic Commerce Will Remain a Vital and Growing Part of Our Economy”

IPv6

IPv6 Could Pave the Way to New Internet Capabilities; Provides for Improved Security and Reduced Operational Expenses

President Bush's National Strategy to Secure Cyberspace Called for an IPv6 Task Force

Co-Chaired by NTIA and National Institute of Standards and Technology (NIST), and Will Consult with DHS and Other Federal Agencies

Will Seek Public Comment for a Report Due in the Spring of 2004

CybersecurityAdministration’s steps to deal with attacks/challenges: Created the National Cyber Security Division at

DHS Issued Homeland Security Presidential Directives NTIA’s IPv6 Task Force (noted above) U.S. industry has increasingly come forward to

assist in these efforts –e.g, Dell’s decision to sell products with future installed

security settings Overall increased willingness to report cyberattacks

Electronic Numbering (ENUM)

Protocol To Map a Telephone Number from the Public-Switched Telephone Network to the Domain Name System, and Vice Versa

U.S. Supports a Global Tree but has not yet “Opted In” to ENUM Protocol

Implementation Must be Pro-Competitive & Pro-Consumer

Administration Encouraging Industry to Move Forward with Strategy for Domestic Implementation

Several U.S. Companies (Telcordia, SAIC, NeuStar) are Involved with Trials

Spectrum Policy Issues

Spectrum Policy: The Who, What, Where, When, and Why of Access

Great Potential for Government Action Towards a Positive Effect on Economic and National Security

Spectrum Use is Pervasive

Spectrum is Crucial to Economic Security

Spectrum is the basis for many government and non-government services and commercial products. It adds millions of dollars to the economy. Examples:

U.S. Commercial mobile sector: [Source: CTIA] $148 million customers $80 billion annual revenues $134 billion cumulative capital investment Almost 200,000 employees

Wi-Fi: 28 million are using Wi-Fi connections in the U.S. [Source: IDC] Over 20 million wireless LAN chipsets were shipped in 2002 [Source: In

Stat/MDR] By 2008, 95% of notebook PCs will be shipped with a wireless LAN card

[Source: In Stat/MDR]

Challenge to Policymakers

Improvements in processing, battery power and miniaturization portend a technological revolution in communications and the basis for new growth.

The challenge to policymakers is to develop policies that permit dynamic new technologies to flourish while not interfering with valuable incumbent uses.

Administration Successes in Spectrum for Wireless Data

Third Generation Services

Ultrawideband

5 GHz Spectrum

70/80/90 GHz

0.96 1.61

1.99

3.1 10.6

Preliminary

GPS Band

Blue Line: UWB BANDWIDTH within

3.1 & 10.6 GHz

Black Dotted Line: Current Part 15 Limit

/MH

z

UWB Emission Limit for Outdoor Hand-held Systems

17

5 GHz TIMELINE

20031996 1997 1998 1999 2000 2001 2002

U.S. UNII Rules open up 5 GHz

band

European Regulators establish 5

GHz allocation

WRC-2000 puts 5 GHz

agenda items on

WRC-2003 agenda

ITU-R begins

Studies on 5 GHz

U.S. Manufacturers begin offering 5 GHz devices

ITU-R completes Draft CPM report international

correspondence Group formed due to lack of progress on 5 GHz

sharing criteria

U.S. forms Government / Industry project team – compromise worked out

U.S. proposed compromise

accepted internationally

WRC-03

America’s Regional Forum

(CITEL) reaches

accord on 5 GHz based

on U.S. proposal, combines 1.5 & 1.6

Upcoming Dates:

March 9 – America’s proposals approval deadline.

March 30 – Adoption of Recommendation deadline.

June 1 – Radio Assembly approves recommendation.

June 9 – WRC-03

Radionavigation

5150MHz 5250 5350 5450 5550 5650 5750 5850

Radiolocation

FSS

EESS

SRS

UNII

WAS

Amateur

Amateur Satellite

MOD ADD

ADD

ADD

UPGRADE

Spectrum Policy Reform

Basic Legal and Regulatory Framework Unchanged Since 1927 Not Vastly Changed From the Era of the Titanic Technology Stretches the Limits of Usable Spectrum

Current Process Inflexible and Untimely Bifurcated Manual Conflicting Constituencies Technology Brings New Developments Daily

Current Process Add Uncertainty and Cost International Competitiveness Jobs Productivity

Presidential Initiative on Spectrum Reform

Executive Memorandum Released in June, 2003

NTIA Coordinating with Federal Agencies that Use Spectrum and with the FCC to Improve Policies and Procedures of Spectrum Management

Action Plan Due Spring 2004

ConclusionTechnology remains a cornerstone of our economy and Bush Administration Policy.

The Bush Administration continues to satisfy the often conflicting demands of both National and Economic Security.