D-Block Is Rockefeller’s ‘Highest Priority,’ Senator Says

The bill would allocate the D-block for public safety agencies and authorize voluntary reverse auctions, which Rockefeller said is win-win-win. “Let’s do something historic,” he said. Sen. Amy Klobuchar, D-Minn., took over for Rockefeller and closed the meeting by saying there “was some impatience” to move on public safety spectrum.

But Sen. Kay Bailey Hutchison, R-Texas, said she “has concerns” about how the bill would fund itself. She said she has offered her own “comprehensive” wireless spectrum bill, which would auction other parts of spectrum, but would reallocate D-block to public safety and focus on high-cost and rural areas.

"I'm very concerned on the cost issue,” said Sen. Mark Warner, D-Va. The FCC National Broadband Plan predicted that D-block allocation would have cost up to $6.5 billion if it had been accompanied by 4G buildout. Current cost estimates range from $15 billion to $40 billion, he said. “No network is ever finished. There’s always upgrades,” Warner said. “We've got to find some other funding source other than coming back to Congress.” He urged the public safety advocates and officials in the crowded hearing room to be flexible -- to consider narrowband migration, for instance. “Will you put skin in the game as well?” he asked.

"Everything I'm told by our experts is that we're not, simply not, in a position to rely on the private sector,” said New York Police Commissioner Raymond Kelly. “We know they also have obligations when there is an emergency. I wouldn’t have to totally rely on private carrier or carriers to conduct our business."

Delaware Gov. Jack Markell (D), an ex-Nextel executive, said “there are plenty of opportunities within your proposed legislation for there to be creative partnerships between public and private sectors. … We believe this program could end up saving us money. The idea of some kind of public-private partnership is something that should certainly be on the table.”

Across the Capitol, FCC Chairman Julius Genachowski said he still supports a commercial auction of the D-block. “There are several different ideas that are now in circulation and debate,” Genachowski told the House Communications Subcommittee at its simultaneous FCC oversight hearing. (See separate report in this issue.) “They should be discussed and resolved quickly and focus on what gets a public safety network built quickly.” Commissioner Robert McDowell also reiterated his support for an auction. Commissioner Meredith Baker has supported an auction but thinks reallocation also “is a viable option,” she said. Commissioner Michael Copps said funding the public safety network is a key question and he supports an auction, but he wants to hear from Congress. Commissioner Mignon Clyburn said she “looked forward to Congressional engagement” on the issue.

Subcommittee Chairman Greg Walden, R-Ore., criticized the FCC for being slow to auction the D-block. “I find it interesting … that on the D-block discussion you have chosen to back off on doing what the law explicitly calls on you to do, which is auction the D-block, because Sen. Rockefeller and others have expressed concern.” But on net neutrality, the FCC didn’t listen to about 300 members of the House telling the commission to hold off, Walden said.

While the hearings were going on, Public Knowledge Legal Director Harold Feld said he’s “skeptical” that reverse auctions would be as successful as supporters claim (CD Feb 16 p7). Estimates in a study by the CEA and CTIA that was released Tuesday are too optimistic about TV stations “volunteering” to sell off spectrum, he said. “If broadcasters wanted to sell out for market value, they could do so at anytime. Also, although the analysis attempts to minimize this, success hinges on participation of stations in the top markets -- the stations least likely to want to sell,” Feld wrote. “This is the critical unknown because without a minimum participation in the top markets, incentive auctions do not happen -- period.”