A communications subcommittee in the U.S. House on Thursday approved a modified bill that would give the Federal Communications Commission authority to hold so-called incentive auctions, freeing up spectrum in order to meet the rising demand for wireless data services.
By a vote of 17 to 6, the House Energy and Commerce Subcommittee on Communications and Technology approved the Jumpstarting Opportunity with Broadband Spectrum (JOBS) Act of 2011.
The legislation would enable the FCC to auction off spectrum that was returned by licensees in exchange for a portion of the proceeds and frees up airways to build an inoperable public safety network for the nation's first responders.
"After months of discussion, the JOBS Act strikes a fine balance by reallocating the “D-block" from commercial to public safety use and providing up to $6.5 billion to help build the interoperable broadband network," Rep. Greg Walden, the Oregon Republican and communications subcommittee chairman, wrote for The Hill's Congress blog. "In return, the bill requires public safety to transfer over time to commercial use its narrow-band spectrum in the 700 MHz block so it can be used to create jobs and help meet consumers' growing demand for more mobile broadband services while also providing the 20 MHz of spectrum public safety officials requested."
The subcommittee approved several bipartisan amendments to the JOBS Act, and there could be other changes to the bill in the Senate.
Christopher King, an analyst with Stifel Nicolaus, wrote in a research note Thursday he anticipates the legislation will see final passage next year.
Peter Davidson, Verizon's senior vice president for federal government relations, said Thursday the legislation "reflects growing agreement on the need to meet our nation’s looming spectrum crunch and to address our nation’s need for a 21st-century public-safety broadband communications network."
FCC officials have warned that a spectrum shortage is looming, and the nation's second-largest wireless operator -- AT&T -- has cited its need for airwaves as one of the compelling reasons for its pending purchase of T-Mobile USA.
"The spectrum crunch is the single biggest threat to one of the most promising parts of our economy," FCC Chairman Julius Genachowski said earlier this fall at the U.S. Chamber of Commerce. "There's much we need to do to free up spectrum for mobile broadband, but the single biggest step is voluntary incentive auctions."
