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Reps. Guthrie, Matsui Introduce Bipartisan Federal Spectrum Incentive Auction Legislation

October 4, 2017

FOR IMMEDIATE RELEASE
Monday, December 9, 2013

CONTACT:
Jonelle Trimmer (Rep. Matsui) 202.225.7163
Jennifer Sherman (Rep. Guthrie) 202.225.3501

Reps. Guthrie, Matsui Introduce Bipartisan Federal Spectrum Incentive Auction Legislation

H.R. 3674 would create new financial incentives for government agencies in exchange for Federal Spectrum; Bill is first of its kind

Today, U.S. Representatives Brett Guthrie (R-KY) and Doris Matsui (D-CA), co-chairs of the House Energy and Commerce Committee Spectrum Working Group, introduced "first of its kind" bipartisan legislation that offers a new approach to federal spectrum management and reallocation. This innovative legislation will strengthen our nation's ability to meet its future spectrum demand, by implementing a voluntary federal spectrum incentive auction mechanism, similar to the broadcast incentive auction. The bill is also cosponsored by Energy and Commerce Committee Ranking Member Henry Waxman (D-CA), Communications and Technology Subcommittee Chairman Greg Walden (R-OR) and Ranking Member Anna Eshoo (D-CA).

H.R. 3674, The Federal Spectrum Incentive Act of 2013, would, for the first time, provide direct financial incentives to encourage government agencies to terminate or share with other federal agencies their existing spectrum assignments in order to free up additional spectrum for commercial and innovation purposes. The bill would extend incentive auction-like authority to the Commercial Spectrum Enhancement Act as an alternative to the relocation cost recovery provisions of the Spectrum Relocation Trust Fund. This new incentive applies to all federal agencies holding federal spectrum.

The Federal Communications Commission's (FCC) National Broadband Plan calls for 500 MHz of new commercial spectrum in 10 years. The FCC has projected that by 2014 mobile data traffic will be 35 times the 2009 levels, and the resulting deficit in wireless broadband spectrum is expected to be 275 MHz by 2014. The Federal Spectrum Incentive Act would introduce new financial incentives to help meet future spectrum demand and help reach the goal of 500MHz in the next 10 years.

Among its provisions, the Federal Spectrum Incentive Act creates a new Federal Spectrum Incentive Auction Fund so participating government agencies can access a portion of the revenue from the auctions of their relinquished spectrum. Among the potential uses, money from the Fund may be used to offset sequestration cuts. It may also be transferred and shared between federal agencies either relinquishing spectrum or be made to accommodate relocating systems.

"Our nation requires a smart and sound spectrum policy. As the single largest spectrum user in the country, the United States government must be more efficient in managing our spectrum," said Congresswoman Matsui. "By providing financial incentives for the first time, this bipartisan legislation will serve as a model to encourage the government to reallocate non-critical spectrum for commercial purposes. It will provide many federal agencies an opportunity that will be hard to refuse, particularly as our nation's budget continues to shrink. This bill represents the creative thinking needed to meet our nation's goal of 500MHz of new commercial spectrum over the next 10 years. I am pleased to join with Congressman Guthrie, Chairman Walden and Ranking Members Waxman and Eshoo on this bipartisan bill that is a victory for consumers, for American ingenuity, and for the federal government."

"Efficient use of spectrum and continuous innovation are essential to meet consumers' ever-growing demands for the next technological advancement. The efforts of the Federal Spectrum Working Group allowed us to see first-hand the critical demand for additional commercial spectrum, as well as the tremendous amount of spectrum being held by the federal government. The Federal Spectrum Incentive Act of 2013 would incentivize agencies to be more efficient with this precious resource, allowing them to share in the profits of spectrum bands they relinquish," said Congressman Guthrie.

"I commend Rep. Matsui and Rep. Guthrie for their work on the Federal Spectrum Incentive Act of 2013. The bill provides new incentives for federal agencies to use their spectrum more efficiently while addressing our nation's spectrum shortage. The bill gives agencies the potential to obtain additional revenue to help offset the cuts imposed by sequestration. I urge my colleagues to support this innovative, bipartisan legislation," said Rep. Henry Waxman, Ranking Member of the House Energy and Commerce Committee.

"By providing an incentive for government users to more efficiently use spectrum by sharing in some of the financial benefits, this bipartisan legislation is yet another example of our members working together to promote innovation and create jobs by helping provide additional spectrum to meet consumers demand for more wireless broadband," said Walden. "I thank Reps. Guthrie and Matsui, the co-chairs of the Subcommittee on Communications and Technology's working group for their leadership on this issue and for introducing the bill,andquot; said Rep. Greg Walden, Chairman of the Communications and Technology Subcommittee.

andquot;To advance a 21st century spectrum policy and meet our nationand#39;s growing demand for wireless broadband, we have to think creatively on how to manage and relocate spectrum held by federal agencies. Iand#39;m pleased to join my colleagues in introducing bipartisan legislation which provides federal agencies with the financial incentives to give back or share their spectrum,andquot; said Rep. Anna G. Eshoo, Ranking Member of the Communications and Technology Subcommittee.

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