Deputy Secretary's Speech

Remarks By Deputy Commerce Secretary David A. Sampson
Improving Spectrum Management Conference
Washington, D.C.

Thank you John [Kneuer] for that kind introduction. Good morning and welcome to Washington. I also want to recognize our guests who have come from as far as New Zealand and Australia, and Europe.

Let me first say thank you for coming to this workshop sponsored by our National Telecommunications and Information Administration. All of you are involved one way or another in how we use and manage the public airwaves. This is a major responsibility, and the fact you're all here today shows how seriously you take that responsibility.

As we all know, the radio spectrum has been a key part of our lives and our economy for over a century. It allows people to communicate and do business vastly better and faster than ever before by phone, television, radio, and most recently, over the Internet using a variety of wireless connections. And in the knowledge-based world of the 21st century, the airwaves will be an even more valuable and precious public asset.

But to take full advantage of the power of the spectrum, it is imperative that this country remain technologically advanced. We absolutely must be on the cutting edge of radio technology. And we must also use the most effective management tools for getting the most out of that technology. We can have the very best technology on the planet. But what good is it if we fail to tap all its potential?

That's what you'll be working on for the next two days: considering various ways and incentives to encourage more efficient use of the radio spectrum. In turn, this will lead to making more parts of the spectrum available for other applications, and it will promote development of new technologies.

President Bush's Spectrum Policy Initiative identifies reforming the way we manage our spectrum as a critical contributor to innovation, job creation and economic growth in our country. There are countless examples of this. Today, over 200 million Americans subscribe to a commercial wireless service. Many can log on to the Internet using unlicensed Wi-Fi technology or licensed services.

There are innumerable applications for RFID technology. NASA scientists communicate with the Mars Rover on radio frequencies. The Commerce Department's National Weather Service uses satellite and other wireless technologies to track storms. Farmers and ranchers manage their lands wirelessly.

Without a doubt, spectrum use is one of--if not the most--pervasive modern technologies we have today. And the U.S. is the global leader in radio technology and innovation. But to stay the leader, we have to stay ahead of the curve.

The Bush Administration has a solid track record on getting more out of the radio spectrum in ways that will spur technical innovation and increase competitiveness. Working to open the government's 5 GHz bandwidth for sharing, facilitating the auction of new licenses for advanced wireless services this coming summer, and providing unprecedented access in the 70-, 80- and 90-GHz bands--is a testament to the President's commitment.

The President's policies have several specific goals:

• To establish a modern spectrum management system
• To create incentives and policies that encourage efficiency and new services while increasing predictability and certainty for users
• And to streamline the deployment of new services while preserving national security and public safety, and encouraging scientific research

Efficiency is the ultimate aim of good spectrum management. However, we're not as effective as we could be, especially given the critical-mission needs of some users, such as the military and federal agencies. One way to solve this problem is with economic and other incentives that build new markets and free up spectrum for more users and new innovative technologies.

In the private sector, market forces are at work in certain industries. Broadcasters, for example, can buy or sell stations with few restrictions from the FCC.

In recent years, the FCC has taken additional steps. It created new market incentives by giving some licensees increased technical or service flexibility by easing rules to allow leasing and secondary markets, and by using auctions to assign licenses.

During this workshop, you will explore areas where the FCC might need expanded legislative authority to carry out further market-based reforms.

How economic incentives might work best for federal users is another topic that you'll be considering.

Today, federal agencies are not affected by market forces. Federal spectrum management is an administrative process in which economic value plays little or no role. An incentives approach recognizes that spectrum has a measurable value and opportunity cost. Management reforms based on economic incentives--such as fees or greater rights or something else--incorporate that value into the decisions federal agencies make about usage and procurement of new systems.

There are other ideas to explore. Should we consider trading or leasing federal spectrum? Can we make greater use of commercial services? And would more spectrum-sharing lead to greater efficiency?

Over the next two days, you will hear from some of the best economists, engineers, and legal minds as they discuss and debate how economic incentives might improve the way we use the airwaves. Among you are academics, policymakers, and operations people from the federal government and the private sector.

We are also fortunate to have representatives from other nations to hear what they've been doing. Some have been very successful at creating market incentives. New Zealand and Australia, for example, were among the first to adopt market incentives, with New Zealand taking the plunge over 15 years ago.

Guatemala has made some of the most extensive reforms to date. In Europe, the United Kingdom adopted reforms for its commercial users and is now looking at market reforms for government agencies. And the European Union is considering market reforms for its member countries.

So, there is much to learn about. You're in a very dynamic industry. I'm certain that you will have some lively and stimulating discussions.

In closing, let me say that over the next two days, we're going to ask a lot from you. We want you to put new ideas on the table. We want you thinking outside the box. We're counting on you to move past theory and to come up with a specific agenda that includes legislative and administrative reforms that President Bush and Congress can consider.

And we will use this agenda to keep the wireless industry strong and innovative, and a leader in a technology that is vital to America’s national and economic security, and to the rest of the world.

Thank you.