Waxman Backs Partnership for Public Safety Network

“I am not sure that any of these proposals are going to derive the revenues that we have to have in order to build out this spectrum, particularly in rural areas,” said Communications Subcommittee Chairman Rick Boucher, D-Va., who chaired the hearing. Boucher raised concern about the estimated $10 to $20 billion that experts have told him would be needed to build out the network. “At the end of the day we are going to find ourselves looking for some kind of general fund revenues in order to finance this,” said Boucher.

Waxman said the plan should include: Quick buildout of networks, a commitment to serve all parts of the country from urban to rural, and a strategy to “avoid distorting or disrupting the commercial wireless marketplace by giving an unfair advantage to certain carriers over others.” Ranking member Joe Barton, R-Texas, recommended that the technological problems of building out networks be studied and resolved first before making policy decisions. “Let’s get to work,” Barton said, saying he strongly advises against a “conditioned auction” approach because it didn’t work before: “If we need to, as a subcommittee, inform the FCC not to do that, I support that.”

The public safety community mostly agrees that the conditioned auction approach “is not worth pursuing,” said Rep. Cliff Stearns, R-Fla., subcommittee ranking member. Boucher identified four approaches described by Thursday’s witnesses representing public safety, carriers and a technology expert. One solution is an auction involving a public-private partnership, the approach Waxman backed with the caveat that details of such a partnership would need to be revisited. A second idea is the straight sale of the D block to a commercial provider, which would use the revenue to build the network.

The third idea, backed by the Public Safety Spectrum Trust, would involve legislation directing the FCC to remove auction requirements and allocate the D block to public safety. A fourth proposal would combine the 10 MHz allocated for public safety broadband use with the adjacent D Block 10 MHz to create a 20 MHz block for auction to a commercial entity, a proposal offered in an Aug. 12 letter to the FCC by the National Emergency Number Association. In exchange for the re-allocation of public safety spectrum, half of the revenue would be placed into a public safety broadband trust as a down payment on public safety access to and use of the network. Public safety would get access to the full 20 MHz on a priority basis when needed and be assured of discounted access rates, the proposal said. But public safety would need to have guaranteed access to a renewable source of funding to access and utilize the network, according to NENA CEO Brian Fontes.

The NENA option would require congressional action, Fontes said. “NENA does not believe that this is the only option for consideration, but simply one that could meet the objectives of a nationwide network with funding.” NENA described the 20 MHz combined block idea as an “alternative proposal” that has generated “significant debate” since the group offered the idea to FCC Chairman Julius Genachowski in the Aug. 12 letter.

“Pricetags really do matter around here,” said Rep. Anna Eshoo, D-Calif., a longtime proponent of public safety and co-founder of the congressional E-911 caucus. “If there is going to be a shortfall” from any of the proposals, “we need to take that into consideration.” Stearns expressed concern that estimates run as high as $20 billion -- higher than he expected -- to build the network. “Where are we going to get the revenue for that?” he asked. Rep. Jane Harman, D-Calif., also a longtime proponent of getting the network built, said she favors the public-private partnership option. “We are never going to get there unless you help us,” said Harlin McEwen, chairman PSST.

T-Mobile submitted a letter to subcommittee leaders that said consumers would be best served if the D Block is auctioned, with proceeds allocated to the public safety community. “Lawmakers must focus on the best solution that considers existing conditions and future opportunities and challenges,” said the Wednesday letter signed by Tom Sugrue, T-Mobile vice president of government affairs. “Congress should strongly consider legislation that would enable the FCC to auction the 700 MHz D Block for purely commercial use,” Sugrue said. Estimated proceeds could range between $2 and $9 billion, he said. Those funds alone “would not be sufficient to fully fund and maintain a nationwide public safety broadband network,” he said, but it would make a good start.

AT&T told the subcommittee it supports deployment of regional wireless networks to meet needs of local public safety officials. The “Leveraged Network Model” would give public safety “exclusive” access to spectrum, eliminating commercial users concern over sharing networks, said Stacey Black, AT&T assistant vice president, market development. This approach would use the LTE standard, which could enable “seamless roaming” and provide the backbone for a “network of networks” proving public safety with interoperable broadband across the country.

Verizon Wireless agrees with AT&T. The carrier released a statement Thursday saying Congress should enact legislation establishing a national framework for first responder communications. “Enacting legislation that gives the spectrum to public safety would enable the construction of regional broadband networks that would benefit first responders across the country,” said Verizon Wireless Vice President Steven Zipperstein.

Rep. John Shimkus, R-Ill., deplored the dropoff of interest in Congress and the public and private sector in building the public safety network. “This room should be flooded with people,” said Shimkus. About a dozen members of the subcommittee attended the opening of the hearing, with public seating nearly three-fourths full, in contrast to the much larger attendance at hearings in the last Congress prior to the DTV transition. Boucher said he would continue to “look for creative ideas” for solving the problem.