Spectrum Management: Auctions Page: 2 of 17
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Spectrum Management: Auctions
Summary
Spectrum policy issues before Congress are characterized by economic,
technological and regulatory complexity. An increasing number of public comments
have criticized the effectiveness of spectrum management and policy in the United
States. Questions regarding the role of auctions in spectrum management are of
immediate concern because congressional authorization of the existing auction
process expires in 2007. Proceeds from spectrum sales are presently attributed to
general revenue in the U.S. Budget. In the 108th Congress, however, a precedent
was established with the creation of a Spectrum Relocation Fund. This fund will
hold proceeds from specified sales of spectrum currently allocated to federal use;
federal agencies vacating spectrum to be auctioned for commercial use will be
compensated from the fund for costs of relocation. In the 109th Congress, H.R. 1323
(Representative Stupak) is the first of several anticipated bills that would place
auction revenues in special funds for specific purposes. The 108th Congress also
asked for a study regarding the allocation of spectrum licenses, due by October 2005.
The conclusions of this report may lead to changes in spectrum policy and the auction
process. Congress may also consider ways to free valuable spectrum currently
occupied by broadcasters as part of a plan to encourage the move from analog to
digital television (DTV).
Spectrum, a valuable resource governed by available technology, is regulated
by the federal government with the primary objectives of maximizing its usefulness
and efficiency, and to prevent interference among spectrum users. A key component
of spectrum policy is the allocation of bands for specific uses and the assignment of
frequencies within those bands. Auctions, a fairly recent innovation in frequency
assignment, are regarded as a market-based mechanism for allocating spectrum.
Other market-driven policies include licensing fees based on fair-market valuations
of spectrum and flexibility in spectrum usage within assigned bandwidths. Today,
spectrum for commercial applications is typically auctioned to the highest bidder, but
many commercial users have spectrum acquired before the present-day auction
process was implemented.
After years of debate over the idea of using auctions to assign spectrum licenses,
Congress authorized the Federal Communications Commission (FCC) to establish
an auction process to award spectrum licenses for certain wireless communications
services (Omnibus Budget Reconciliation Act of 1993). In the Balanced Budget Act
of 1997 and the Auction Reform Act of 2002, Congress established conditions
regarding some auctions.
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Reference the current page of this Report.
Moore, Linda K. Spectrum Management: Auctions, report, March 21, 2005; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc812412/m1/2/?q=%22telecommunication%22: accessed April 24, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.