The Administration’sSPECTRUM

POLICY INITIATIVE

• Cumulative 3G wireless service revenue could reach $1 trillion over the next 10 years. • 148 million Americans have wireless phones• The U.S. commercial mobile wireless industry employs almost 200,000 people (187,000)• The commercial mobile wireless industry has about $80 billion in annual revenues and reflects about $134 billion cumulative capital investment• 28 million people are using Wi‑Fi connections in the United States• Over 20 million wireless LAN chipsets were shipped in 2002 with 33 million forecast for 2003• By 2008, 95% of notebook PCs will be shipped with a wireless LAN card • 22.6 million Wi‑Fi users will connect to over 50,000 hot spots in the United States, and 75 million Wi‑Fi users will connect to over 165,000 hot spots internationally, by 2008• There are 1,721 commercial and educational TV stations, 13,383 radio stations (FM/AM), and 8,544 FM/UHF/VHF translators that consumers currently enjoy.

• Spectrum provides one of the basic building blocks for America’s telecommunications future.

• Spectrum-based technologies are key to business and consumer uses that enhance productivity and efficiency and improve quality of life:

Why is spectrum management important?

Federal AgencyMissionRequirements

Public Safety(State & local)MissionRequirements

Private SectorMarket Requirements

Communications Requirements

Spectrum Requirements

Mission to Communications to Spectrum Requirements

NTIA FCC

International Telecommunications Union

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CHECKS & BALANCES SPECTRUM MANAGEMENT SYSTEM

COMMUNICATIONS ACT OF 1934

COORDINATION

ADVISORY LIAISON

INTERDEPARTMENT RADIO ADVISORY COMMITTEE (IRAC)

NTIA Chairs IRAC & Subcommittees

20 Govt Departments/Agencies as Members

NTIA

- National Defense- Law Enforcement & Security- Transportation- Resource Mgt Control- Emergencies- Other Services

(On behalf of President)

FCC(Independent Agency)

- Business- State & Local- Entertainment- Commercial- Private

FCC/NTIA Administrative Procedures Document & Input Flow

NOI NPRM

FNPRM

R&OPetitionFor Recon

MO&O

Public Comments (~60-120days)& Reply Comments (~30 days)

Public

*If spectrum is:• Excl Non-Govt – Input suggestions only • Shared –NTIA Co-regulator …FCC Output requires NTIA Coordination• Excl Govt – FCC Output requires NTIA Coordination

D

N T I A

IRAC AgencyComponents

OtherGovtEntities

*I *I *I *I *I *ID D D D D

D – DraftI - Input

Why are we addressing spectrum management now?

1. Spectrum management framework created in 1934 … many feel it is not keeping pace with changes in technology and spectrum use.

2. Current process … • Is not flexible and timely to facilitate the introduction of new

technologies or to accommodate the evolution of existing technologies

• 3G services • Ultrawideband technology• WiFi• WRC• 9/11 … Homeland Security

• Does not provide certainty for incumbent users … rule changes could jeopardize investment & critical operations

30000 – 300000

3000 – 30000

30 - 300

3 - 30

.3 - 3

.003 - .3

FREQUENCY(MHz)

300 - 3000

UWB

Example … UWB In Many Bands

UWB

UWB

Changes (Rulemaking)

New technologies/servicesrequire spectrum

All spectrum is allocated& incumbents require protection

THE DILEMMASpectrum Mgt System (FCC/NTIA)

Expand economy … more jobs … morespectrum efficient use… makes life easier

Critical needs (security,public safety) … large investment (Govt & Private Sector) …certainty/predictability/rights …

Bureaucracy … timely …

expensive …limited technical

personnel

Concerns

• Timely spectrum access• Spectrum sharing• Spectrum efficiency• Incumbent adjustments• Timely introduction & application of new

technologies• Balance between economic benefit & government

needs• Cooperation between regulators and users.• Regulatory workforce adequacy

President’s Goal

Develop & Implement Spectrum Policy for 21st Century That:

1. Makes the legal and policy spectrum management framework keep pace with changes in technology and spectrum use

2. Improves the timeliness and flexibility of the current process to introduce new technologies and protect critical spectrum uses

3. Fosters economic growth

4. Ensures national & homeland security

5. Maintains U.S. global leadership in communication technology development & services

6. Satisfies U.S. spectrum needs (to include, public safety, scientific research, federal transportation and law enforcement)

INITIATIVE OBJECTIVES

Review spectrum policies & identify revisions that promote effective, efficient & beneficial use of spectrum without unacceptable interference to critical incumbent users to include:

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 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 & homeland security, public safety, and encourage scientific research

D. Develop means to address critical spectrum needs of national & homeland security, public safety, Federal transportation infrastructure, and science.

Approaches

• Secretary of Commerce Chair and direct work of the Initiative consisting of two courses of spectrum related activities:– Interagency task force … gather individual information &

advice … does not involve collective judgment or consensus advice or deliberation

– Series of public meetings … gather input (recommendations for improving policies and procedures for use of spectrum by State and local govt, private sector and sp mgt process as a whole from interested parties (FCC, users, vendors, financial analysts, economists, technologists and consumer groups)

Items to Deliver to the President by May 29, 2004

• Federal Government Report (Task Force): Recommendations for improving spectrum management policies & procedures to stimulate more effective, efficient & beneficial use of spectrum by Federal Government.

• State & Local and Private Sector Report (Public Meetings): Recommendations for improving policies & procedures for use of spectrum by State & local governments & private sector as well as the spectrum management process as a whole.

Note: Reports to be presented to the President through the Assistant’s to President for Economic Policy & National Security Affairs and in consultation with the Assistant to the

President for Homeland Security.

Task Force

1. DOC Chairperson of the Task Force2. Secretary (NTIA), Task Force3. Department of State4. Department of Treasury5. Department of Defense6. Department of Justice7. Department of Interior8. Department of Agriculture9. Department of Commerce10. Department of Transportation11. Department of Energy12. Department of Homeland Security13. National Aeronautics and Space Administration14. Office of Management and Budget15. Office of Science and Technology Policy16. Office of Project SAFECOM

How are we coming along? Task Force Discussion Areas

• Decision review processes• Strategic Plans• Agency Spectrum Needs• Spectrum efficiency and effectiveness• Analytical techniques• New technologies and expanded services• Time access• Resources• Continuing activities

Continuing Activities• Paperless spectrum management initiative• Spectrum management reform initiative • Web-based coordination• FCC/NTIA MOU monthly/biannual planning• FCC/NTIA 3G implementation• FCC/NTIA/STATE WRC process reform• WRC 2003 implementation• Receiver standards study• Spectrum efficiency & effectiveness study• Interference criteria study• Compendium of innovative technologies for PS

Public Meetings

• Spectrum Efficiency & New Technologies Forum … NTIA (Dec 9)

• Spectrum Management Policy Reform Workshop … National Academy of Sciences (Feb 12-13)