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July 24, 2002, 9:00 AM ET, Alert No. 476.
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Government Officials Announce 3G Spectrum Plan
7/23. Officials from the Federal Communications Commission (FCC), Department of Commerce (DOC), and Department of Defense (DOD), along with the heads of the CTIA and TIA, announced a plan for the reallocation of 90 MHz of spectrum for use by Third Generation (3G) wireless services at a press conference in Washington DC. The identified spectrum is located at 1710-1755 MHz and 2110-2155 MHz.
The participants also called for legislation amending the spectrum auction process. In particular, the administration proposes creating a trust to be funded out of the proceeds of auctions of the reallocated spectrum; this trust would then provide payments to federal entities that must relocate to other spectrum.
3G technology, which is still being developed, will be a digital, packet switched, Internet protocol system. It will carry voice, music and data. It will also further increase the efficiency of use of spectrum, and enable each 3G capable device to have broadband data transfer rates. It is intended to bring broadband Internet access to portable devices. However, providers of 3G services need spectrum upon which to offer these new services.
Spectrum was nationalized since 1927. There is no market in which services providers can purchase the spectrum that they want. If they are to obtain spectrum, the government must take spectrum away from incumbent users, and reallocate it to new users. Incumbents do not like to lose their spectrum, even if they are reallocated other spectrum. The military is the main incumbent in the 1710 -1755 MHz band, and hence, has been involved in the 3G planning process.
The DOC's National Telecommunications and Information Administration (NTIA) released a document on July 23 titled "An Assessment of the Viability of Accommodating Advanced Mobile Wireless (3G) Systems in the 1710-1770 MHz and 2110-2170 MHz Bands". The NTIA has spectrum management responsibilities for spectrum used by government entities, while the FCC has spectrum management responsibilities for spectrum used by the private sector.
Secretary of Commerce Don Evans made a brief opening statement, and then walked out. The remainder of the press conference was conduced by Steven Price (Deputy Assistant Secretary of Defense for Spectrum and C3 Policy), Kathleen Abernathy (FCC Commissioner), Kevin Martin (FCC Commissioner), Nancy Victory and Mike Gallagher (NTIA), Tom Wheeler (President of the Cellular Telecommunications Industry Association), and Matthew Flanigan (President of the Telecommunications Industry Association). The audience included more government employees, industry representatives, and journalists.
The plan does not make any spectrum available today. Rather, it reflects a consensus among the FCC, DOD and NTIA regarding specific spectrum bands that should be reallocated, and changes that should be made to the auction and relocation process. It provides engineers, equipment manufacturers, service providers, and investors an increased level of certainty that spectrum will be made available for 3G, as well as what spectrum bands it will be, and when it will be available.
Don Evans stated that "this is a very very big day". He said that "the executive branch of government, for some ten years now, almost ten years, has been working on the prospect of providing more spectrum for the telecommunications community".
Evans continued that "We have accomplished this, while also achieving the necessary balance between our country's economic growth and the national security of this country, as well as of the safety. Our plan will promote economic growth without jeopardizing the national security of this country. This landmark plan identifies, as I mentioned, 90 megahertz of radio spectrum for advanced wireless telecommunications services that will provide a lasting benefit to the American people. The availability of this additional amount of spectrum will mean improved quality of voice and data services we use today, and also new applications for health care services, and basic business tools, such as data analysis and inventory management."
The DOD's Price stated that "We welcome the findings in the 3G Viability Plan and believe the Plan supports the needs of national security. DoD believes that implementing the 3G Plan will not degrade military capabilities nor harm national security interests."
Price added that "While the Plan requires some changes to certain of our systems, The Defense Department concludes that military capabilities will not be degraded because DoD is gaining access to comparable spectrum, where necessary, receiving cost reimbursement, and being afforded time to adjust our operations."
The CTIA's Wheeler praised the plan for providing industry with a timetable and certainty. He also said that it will allow companies to avoid "fire drill auctions".
Spectrum that will be reallocated for 3G services would also be auctioned. Wheeler explained his comments. He said that in the recent 700 MHz bill "Congress stepped in and removed all of the dates for auctions that had been set arbitrarily as part of a budget game. So what we are now dealing with is that piece of the puzzle coming together with this piece of the puzzle, and the result is certainty and stability."
The FCC's Abernathy then stated that first there would be allocation of spectrum, and then service rules. Then, "at the end of the day, the likelihood is that these would go through auction, but we are talking about nothing until, at the earliest, 2004."
See also, DOC release, CTIA release, TIA release, and opening statement of Tom Wheeler.
Administration Proposes Legislation to Create Spectrum Relocation Fund
7/23. Theodore Kassinger, General Counsel of the Department of Commerce (DOC), wrote a letter to House and Senate leaders, and Chairmen and ranking members of the relevant oversight committees, enclosing a draft bill titled the "Federal Spectrum Relocation Payment Procedures Act". The proposed legislation is a part of the administration's overall plan for reallocating spectrum for Third Generation (3G) wireless services.
He wrote that "Under current law, commercial entities must reimburse Federal entities for the costs of relocating from reallocated spectrum, and agencies are not authorized to accept these payments, but the spending of the payments must be appropriated. This proposal would not only change the mechanism for payment to the agencies from direct payments by the commercial entities to payments from a central Spectrum Relocation Fund funded by auction receipts, it would also authorize the Federal entities to spend the payments without further appropriation."
Mike Gallagher of the DOC's National Telecommunications and Information Administration (NTIA) stated at a press conference on July 23 that the administration has been in close contact with congressional staff, but that it does not have any Senator or Representative who is prepared to introduce this proposed bill.
Sen. Sen. Ernest Hollings (D-SC), the Chairman of the Senate Commerce Committee, and Sen. Daniel Inouye (D-HI), the Chairman of the Communications Subcommittee, stated on July 23 that "we plan to introduce bipartisan legislation".
Sen. Hollings Comments on 3G Plan
7/23. Sen. Ernest Hollings (D-SC), the Chairman of the Senate Commerce Committee, and Sen. Daniel Inouye (D-HI), the Chairman of the Communications Subcommittee, released the following joint statement: "In the Senate Commerce Committee, we have tirelessly promoted the need for additional spectrum for third generation wireless service as an issue requiring resolution by federal regulators. In the past two years, we have had hearings on this very issue in which we have encouraged all stake holders to identify and allocate additional spectrum for third generation wireless service. Therefore, it is with satisfaction that we receive the news that both DoD and industry working with the FCC and NTIA have resolved the sharing issues and identified additional spectrum for third generation wireless service."
The two also stated that "In the near future, we plan to introduce bipartisan legislation that will supplement these positive steps by addressing a number of spectrum management issues, including the reimbursement of government users when they are required to relocate their facilities to make spectrum available for commercial purposes."
Privacilla Paper Addresses Privacy Torts
7/23. Privacilla.org published a paper [PDF] titled "The Privacy Torts: How U.S. State Law Quietly Leads the Way in Privacy Protection".
The paper states that "During the last century, American common law developed a body of privacy protecting theories that give people whose privacy has been invaded the right to sue and collect damages." The paper goes on to review the nature of tort law, the history of privacy torts, and the elements of causes of action based on privacy tort law. The paper also includes state by state list of court opinions that address privacy.
The paper also discusses the policy implications of the availability of tort remedies for invasions of privacy. It states that "in Washington, D.C., U.S. state capitols, and internationally, many politicians and bureaucrats are seeking to protect privacy without knowledge of fundamental protections for privacy in the United States: the state privacy torts."
The paper does not criticize legislators. Rather, it focuses on the privacy advocates who inform them. It states that "Many pro-regulation privacy activists and so-called consumer advocates have disinformed Congress and the public about the existence of privacy protections for consumers. They have fostered a degree of hysteria by encouraging the impression that consumers are completely unprotected by existing law. For example, the Electronic Privacy Information Center's 2000 Privacy and Human Rights book states flatly ``The U.S. has no comprehensive privacy protection law for the private sector.´´"
Moreover, the report asserts, state privacy litigation is superior to prescription regulation as a means of protecting individual privacy. Citing the privacy regulations contained in the Gramm Leach Bliley Act, the report concludes that "Attempting to refine ``notice and choice´´ is a technocratic approach that can not succeed."
The paper also cautions that "federal preemption of the state privacy torts would be a significant and objectionable retreat for privacy protection in the United States. Any preemption should be limited to regulatory statutes -- not the baseline privacy protections provided by the state privacy torts." Also, states should be cautious about legislating regarding privacy.
The paper's conclusion is that "Legislators, bureaucrats, the press, and the public should be better aware of the explicit privacy protection available in the United States through the privacy torts. This knowledge will help consumers know better when their privacy is threatened and when it is safe. And it will help dissuade legislators from experimental legislation clumsily aimed at delivering privacy by dictating information policy."
The paper does not name its author. It states only that it is "Issued by Privacilla.org". Jim Harper is the Editor of the Privacill.org, as well as the Principal of Policy Counsel and an Adjunct Fellow at the Progress and Freedom Foundation.
DOJ Recommends Approval of Qwest Long Distance Application
7/23. The Department of Justice (DOJ) issued its competitive analysis [49 pages in PDF] of the Section 271 application of Qwest Communications to provide in region interLATA services in the states of Colorado, Idaho, Iowa, Nebraska, and North Dakota. The DOJ recommends that the Federal Communications Commission (FCC) approve the applications.
The FCC concluded that "Qwest's application demonstrates that it has succeeded in opening its local markets in Colorado, Idaho, Iowa, Nebraska, and North Dakota in most respects. However, Qwest's application as filed does not demonstrate that it provides CLECs with electronically auditable wholesale bills for the UNE platform nor does it adequately address issues relating to Qwest's manual processing of wholesale orders. Thus, the Department cannot support Qwest's application as filed. However, Qwest has since submitted substantial additional evidence which, if sufficiently meaningful and reliable for the Commission to assure itself that Qwest is providing electronically auditable wholesale bills and manually processing wholesale orders timely and accurately, would justify the granting of long distance authority in Colorado, Idaho, Iowa, Nebraska, and North Dakota."
Qwest issued a release in which it stated that "Qwest filed a second application for four more states -- Washington, Utah, Montana and Wyoming -- on July 12. The DOJ is scheduled to make its recommendation to the FCC on Qwest’s second application on August 16."
This is WC Docket No. 02-148. See also, DOJ release.
GAO Reports on Multitude of Critical Infrastructure Protection Entities
7/22. The General Accounting Office (GAO) released a report [84 pages in PDF] titled "Critical Infrastructure Protection: Federal Efforts Require a More Coordinated and Comprehensive Approach for Protecting Information Systems".
The report found that "At least 50 federal organizations are involved in national or multiagency cyber CIP activities that include setting policy, analyzing vulnerabilities and intelligence information, disseminating alerts and warnings on potential and actual infrastructure attacks, developing remediation plans, responding to incidents, and performing research and development. These organizations are primarily located within 13 major departments and agencies mentioned in Presidential Decision Directive 63."
The report also found that "relationships among all organizations performing similar activities (e.g., policy development or analysis and warning) were not consistently established. The President’s Critical Infrastructure Protection Board is intended to coordinate federal efforts and programs related to protecting critical infrastructures. However, an underlying  challenge in this coordination is that a detailed strategy is still being developed."
The report concluded that "Without a strategy that identifies responsibilities and relationships for all cyber CIP efforts, our nation risks not knowing whether we have the appropriate structure to deal with the growing threat of computer based attacks on its critical infrastructure. The President's Critical Infrastructure Protection Board is currently developing a proposed national strategy in coordination with the private sector. It is essential that this strategy define the roles, responsibilities, and relationships among the various federal organizations involved in cyber CIP activities."
The report was prepared for the Senate Governmental Affairs Committee, chaired by Sen. Joe Lieberman (D-CT). On July 24, the House Government Reform Committee's Subcommittee Government Efficiency, Financial Management, and Intergovernmental Relations is scheduled to hold a hearing titled "Cyber Terrorism: Is the Nation's Critical Infrastructure Adequately Protected?"
People and Appointments
7/23. The Senate Commerce Committee (SCC) approved the nomination of Jonathan Adelstein to be a Commissioner of the Federal Communications Commission. See, SCC release.
7/23. The Senate Commerce Committee (SCC) approved the nominations of Kathie Olsen and Richard Russell to be Associate Directors of the Office of Science and Technology Policy. See, SCC release.
Powell Comments on 3G Plan
7/23. Federal Communications Commission (FCC) Chairman Michael Powell did not attend the meeting at the Department of Commerce. However, he released a statement [PDF]. "I am pleased that 90 MHz of prime spectrum can be made available for advanced wireless services in the United States. This spectrum should provide wireless carriers with sufficient capacity to keep pace with consumer demand for new and innovative services. In the future, as events warrant, the Commission will consider making additional spectrum available for wireless services.
"I would like to laud the National Telecommunications and Information Administration (NTIA) role in this successful interagency effort, as well as the hard working staff from the Federal Communications Commission, (FCC) the Department of Defense (DOD) and other agencies. Together with DOD, NTIA has been able to achieve significant and positive results – for government, for industry, and for American consumers."
"Throughout the past year, an interagency working group with staff from the FCC, NTIA, DOD, and other executive branch agencies, has been working diligently to identify spectrum for advanced wireless services. The interagency effort examined existing federal operations in spectrum already earmarked for transfer to non-federal use -- specifically, the 1710-1755 MHz band. The terms of the transfer would have allowed certain federal operations -- both military and non-military to continue indefinitely. Permissible, grandfathered operations at 16 military facilities would have particularly impeded the development of new nationwide services. The interagency working group developed a creative plan for relocating these operations to other bands and thus clearing the band for commercial use," said Powell.
Wednesday, July 24
The House will meet at 10:00 AM for legislative business.
9:00 AM. Day one of a two day meeting of the Bureau of Industry and Security's (BIS) Information Systems Technical Advisory Committee. The meeting will be partially open, and partially closed to the public. The agenda of the open portion of the meeting includes (1) a presentation on encryption in network management software, (2) a presentation on changes to the mass market encryption regulation, and (3) a discussion of the GAO report on advances in China's semiconductor industry. The BIS was formerly known as the Bureau of Export Administration (BXA). See, notice in the Federal Register. Location: Hoover Building, Room 3884, 14th Street between Pennsylvania Ave. and Constitution Ave. NW.
9:30 AM. The Senate Governmental Affairs Committee will hold a business meeting to consider withdrawals of amendments to S 2452 [273 pages in PDF], the National Homeland Security and Combatting Terrorism Act of 2002. Location: Room 342, Dirksen Building.
CANCELLED. 10:00 AM. The Senate Commerce Committee's Subcommittee on Communications will hold a hearing titled "Competition and the Cable Industry". Sen. Daniel Inouye (D-HI) will preside. The scheduled witnesses include Robert Sachs (National Cable & Telecommunications Association), Rodger Johnson (Knology), David Baker (Earthlink), Gene Kimmelman (Consumers Union), and James Gleason (American Cable Association).
10:00 AM. The House Government Reform Committee's Subcommittee Government Efficiency, Financial Management, and Intergovernmental Relations will hold a hearing titled "Cyber Terrorism: Is the Nation's Critical Infrastructure Adequately Protected?" Location: Room 2154, Rayburn Building.
12:00 NOON. The Congressional Internet Caucus Advisory Committee will host a panel discussion on the future of Internet technologies. The speakers will be Nicholas Negroponte, Walter Bender and Andrew Lippman, all of the MIT Media Laboratory. Sen. Conrad Burns (R-MT) and Rep. Michael Capuano (D-MA) will make introductions. RSVP to rsvp@netcaucus.org or Danielle at 202 638-4370. Lunch will be served. Location: Reserve Officers Association, First and Constitution Ave., NE.
2:30 PM. The Senate Commerce Committee's Subcommittee on Science, Technology, and Space will hold a hearing to examine women in science and technology. Location: Room 253, Russell Building.
3:00 PM. Rep. Billy Tauzin (R-LA), the Chairman of the House Commerce Committee, Rep. Fred Upton (R-MI), the Chairman of the Subcommittee on Telecommunications and the Internet, and others, will hold a press conference on a cyber security report prepared by the Business Software Alliance (BSA). Press contact: Ken Johnson or Peter Sheffield at 202 225-5735. Location: Room 2218, Rayburn Building.
4:00 PM. The House Rules Committee will meet to adopt a rule for consideration of HR 5005, the Homeland Security Act of 2002. See also, HR 5005 [232 pages in PDF] as reported by the House Select Committee on Homeland Security. amendments process for HR 5005. Location: Room H-312, Capitol Building.
Thursday, July 25
The House will meet at 10:00 AM for legislative business. The House may begin consideration of HR 5005, the Homeland Security Act of 2002.
9:00 AM. Day two of a two day meeting of the Bureau of Industry and Security's (BIS) Information Systems Technical Advisory Committee. The meeting will be partially open, and partially closed to the public. The agenda of the open portion of the meeting includes (1) a presentation on encryption in network management software, (2) a presentation on changes to the mass market encryption regulation, and (3) a discussion of the GAO report on advances in China's semiconductor industry. The BIS was formerly known as the Bureau of Export Administration (BXA). See, notice in the Federal Register. Location: Hoover Building, Room 3884, 14th Street between Pennsylvania Ave. and Constitution Ave. NW.
10:00 AM. The Senate Judiciary Committee will hold an oversight hearing on the Department of Justice. See, notice. Press contact: Mimi Devlin at 202 224-9437. Location: Room 226, Dirksen Building.
Friday, July 26
The House will meet at 10:00 AM for legislative business. The House may consider HR 5005, the Homeland Security Act of 2002.
Deadline to submit reply comments to the FCC regarding its Declaratory Ruling and Second Further Notice of Proposed Rulemaking clarifying that providers of Internet protocol telecommunications relay services are eligible for reimbursement from the Interstate TRS Fund. See, FCC notice [PDF].
Monday, July 29
The House is scheduled to begin its Summer District Work Period.
9:00 AM - 5:00 PM. Day one of a two day meeting of the Federal Accounting Standards Advisory Board (FASAB). RSVP by July 22 by calling 202 512-7350. See, notice in Federal Register. Location: Room 5N30, GAO Building.
1:30 - 3:30 PM. The FCC's WRC-03 Advisory Committee, Informal Working Group 7: Regulatory Issues and Future Agendas, will hold a meeting. See, notice [PDF]. Location: The Boeing Company, 1200 Wilson Blvd., Arlington, VA.
Deadline to submit comments to the FCC's regarding its Annual Assessment of the Status of Competition in the Market for the Delivery of Video Programming. See, notice in Federal Register.
Tuesday, July 30
8:30 AM - 12:00 NOON. The Information Technology Association of America (ITAA) and the Center for Strategic and International Studies (CSIS) will host a conference titled "Wireless Security: Challenges and Solutions". Richard Clarke, Special Advisor to the President for Cyberspace Security, will give the keynote address at 8:50 AM. See, notice and agenda. RSVP by July 26, 2002 to kwoolley @itaa.org or 703 284-5323. Location: CSIS, 1800 K Street, NW.
9:00 AM - 5:00 PM. Day two of a two day meeting of the Federal Accounting Standards Advisory Board (FASAB). RSVP by July 22 by calling 202 512-7350. See, notice in Federal Register. Location: Room 5N30, GAO Building.
10:00 AM - 12:00 NOON. The State Department's International Telecommunication Advisory Committee (ITAC) will meet. See, notice in Federal Register. Location: Room 5533, State Department.
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