Congress has taken a number of steps to facilitate the deployment of innovative, new commercial wireless services to consumers, including authorizing the Federal Communications Commission (FCC) to assign licenses through auctions and requiring more spectrum to be transferred from federal government use to commercial use. In addition, in 2004, Congress passed the Commercial Spectrum Enhancement Act (CSEA), which established a Spectrum Relocation Fund (the Fund) to cover the costs incurred by federal entities within certain spectrum bands as they relocate to new frequency assignments or transition to alternative technologies. The Fund is administered by the Office of Management and Budget (OMB) in consultation with the National Telecommunications and Information Administration (NTIA) of the Department of Commerce. In September 2006, FCC concluded an auction of licenses for Advanced Wireless Services on radio spectrum in the 1710 megahertz (MHz) to 1755 MHz band that is currently used by federal agencies. The auction raised almost $6.9 billion in net winning bids from the sale of these frequencies, which was deposited into the Fund to be available to the federal entities for their eligible relocation expenses. Any auction proceeds remaining in the Fund after payment of relocation costs are to revert to the General Fund of the U.S. Treasury not later than 8 years after the date of their deposit.
Recommendations for Executive Action
|Office of Management and Budget||Because it is important that federal agencies present accurate estimates when determining their spectrum relocation needs so that additional subsequent transfer requests--and, thus, further depletion of the Spectrum Relocation Fund--can be avoided, the Director of OMB should, in consultation with NTIA, establish written criteria for agencies to follow when submitting supplemental requests for spectrum relocation funding, communicate these criteria to each of the affected federal entities, and require that these criteria be followed before OMB approves subsequent requests. These criteria should be designed to better assure OMB (and NTIA in its consultative role) that the requesting agency has conducted a thorough assessment of its spectrum relocation needs, and that the estimate has been properly vetted throughout the agency or department involved. For example, these criteria could include, but not be limited to, requiring agencies to provide replacement costs by equipment, location, system, or frequency and requiring agencies to break out expenses into standard categories. Until such criteria can be developed, OMB might consider using, as an interim requirement, the guidance set forth in NTIA's February 2005 letter to the agencies, including NTIA's template and executive summary.|