Spectrum Management: Auctions: RL31764.

Radio frequency spectrum policy issues before Congress are characterized by economic, technological and regulatory complexity. Of particular interest to policy makers are the allocation of spectrum for specific types of use (such as TV broadcasting, radio, advanced wireless services, or unlicensed) and the assignment of licenses for exclusive or shared use of specific frequencies. Today, most frequencies allocated for commercial uses are assigned through auctions, with licenses going to the highest bidder. Another important allocation of spectrum is for unlicensed use. Both commercial and non-commercial entities use unlicensed spectrum to meet a wide variety of monitoring and communications needs. Suppliers of wireless devices must meet requirements for certification to operate on frequency bands designated for unlicensed use. Examples of unlicensed use include garage door openers and Wi-Fi communications. The Federal Communications Commission (FCC) regulates spectrum not allocated for federal use, is responsible for auctioning spectrum licenses, and can also use its authority to redistribute licenses. Proceeds from spectrum license sales are presently attributed to general revenue in the U.S. Budget. In the 108th Congress, however, a precedent was established with the creation of a Spectrum Relocation Fund to hold proceeds from the auction of specified radio frequencies currently allocated to federal use; federal agencies vacating spectrum to be auctioned for commercial use will be compensated from the fund for costs of relocation. In the 109th Congress, the Deficit Reduction Act (P.L. 109-171) included provisions that will hold certain auction proceeds in a Digital Television Transition and Public Safety Fund. The fund mainly would assist the transition from analog televison broadcasting to digital broadcasting, and would contribute to programs for public safety. Over $7 billion would go toward deficit reduction. The funds are to come from the auction of spectrum currently used for analog television broadcasting, to be vacated by February 17, 2009. The auction is scheduled to begin on January 16, 2008. The FCC has issued the rules it will set for the upcoming auction of the old TV channels. Issues that have been raised in the discussion over how best to allocate this spectrum include the creation of national licenses with open access for wireless devices, the treatment of designated entities -- with references to NextWave, blind bidding, how much spectrum is needed for public safety communications, and proposals to provide spectrum for shared use between public safety and the private sector. In particular, proposals put forth by Cyren Call, Frontline, and Google, Inc. have sparked an ongoing public debate about the "highest and best use" for the spectrum currently designated for auction by the Deficit Reduction Act. [ABSTRACT FROM AUTHOR]