The Administration’s SPECTRUM POLICY INITIATIVE

1. The Administration’s SPECTRUM POLICY INITIATIVE

2. Why is spectrum management important? • 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: • 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.

3. Mission to Communications to Spectrum Requirements ? ? ? ? ? ? Communications Requirements Spectrum Requirements NTIA FCC Public Safety (State & local) Mission Requirements Federal Agency Mission Requirements Private Sector Market Requirements International Telecommunications Union

4. COMMUNICATIONS ACT OF 1934 NTIA (On behalf of President) - National Defense - Law Enforcement & COORDINATION Security - Transportation - Resource Mgt Control - Emergencies - Other Services ADVISORY LIAISON INTERDEPARTMENT RADIO ADVISORY COMMITTEE (IRAC) 20 Govt Departments/Agencies as Members NTIA Chairs IRAC & Subcommittees CHECKS & BALANCES SPECTRUM MANAGEMENT SYSTEM FCC (Independent Agency) - Business - State & Local - Entertainment - Commercial - Private

5. FCC/NTIA Administrative Procedures Document & Input Flow Public Petition For Recon NOI NPRM FNPRM R&O MO&O D *I D Public Comments (~60-120days) & Reply Comments (~30 days) *I D *I D *I D *I D *I IRAC Other Govt Entities N T I A Agency Components D – Draft I - Input • *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

6. Why are we addressing spectrum management now? • Spectrum management framework created in 1934 … many feel it is not keeping pace with changes in technology and spectrum use. • 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

7. UWB UWB UWB Example … UWB In Many Bands FREQUENCY (MHz) .003 - .3 .3 - 3 3 - 30 30 - 300 300 - 3000 3000 – 30000 30000 – 300000

8. New technologies/services require spectrum All spectrum is allocated & incumbents require protection Expand economy … more jobs … more spectrum efficient use … makes life easier THE DILEMMA Spectrum Mgt System (FCC/ NTIA) Changes (Rulemaking) Bureaucracy … timely … expensive … limited technical personnel Critical needs (security, public safety) … large investment (Govt & Private Sector) … certainty/predictability/rights …

9. 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

10. 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)

11. 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.

12. 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)

13. 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.

14. Task Force • DOC Chairperson of the Task Force • Secretary (NTIA), Task Force • Department of State • Department of Treasury • Department of Defense • Department of Justice • Department of Interior • Department of Agriculture • Department of Commerce • Department of Transportation • Department of Energy • Department of Homeland Security • National Aeronautics and Space Administration • Office of Management and Budget • Office of Science and Technology Policy • Office of Project SAFECOM

15. 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

16. 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

17. Public Meetings • Spectrum Efficiency & New Technologies Forum … NTIA (Dec 9) • Spectrum Management Policy Reform Workshop … National Academy of Sciences (Feb 12-13)