**STATEMENT OF**

**COMMISSIONER JONATHAN ADELSTEIN**

**APPROVING IN PART, CONCURRING IN PART**

***In the Matter of Amendment of Part 22 of the Commission's Rules To
Benefit the Consumers of Air-Ground Telecommunications Services;
Biennial Regulatory Review---Amendment of Parts 1, 22, and 90 of the
Commission's Rules, WT Docket No. 03-103***

***Amendment of Parts 1 and 22 of the Commission\'s Rules To Adopt
Competitive Bidding Rules for Commercial and General Aviation Air-Ground
Radiotelephone Service, WT Docket No. 05-42***

***Application of Verizon Airfone Inc. for Renewal of 800 MHz Air-Ground
Radiotelephone License, Call Sign KNKG804, File No. 0001716212***

***Order on Reconsideration and Report and Order, adopted December 8,
2005***.

I remain very optimistic about the prospects of broadband in the sky. As
a frequent traveler, I look forward to the day that I can take advantage
of time in the air to upload my latest speech, catch up on e-mail, or
maybe even do some on-line shopping for one of my children's upcoming
birthday. For so many travelers, these new services will increase their
productivity and enhance their quality of life.

When we adopted the initial Report and Order in this proceeding almost a
year ago, I expressed concern that we had lost a golden opportunity to
guarantee true broadband competition in the air by requiring that two
providers have access to the larger three megahertz licenses. Instead,
we proffered a number of different band plans under the mantra of "let
the market decide." Unfortunately, this regulatory punt could result in
the incumbent narrowband provider, Verizon Airfone, securing the
exclusive three megahertz license, which would allow the company to
occupy the entire block of 800 MHz Air to Ground (ATG) spectrum for the
next four years. This is enormous power over the future of ATG service
if left unchecked.

It is important to put this in context.  Notwithstanding the
availability of satellite broadband services, we currently have very
little, if any, broadband services available on U.S. airplanes because
of the size and expense of satellite broadband services. Our decision
last year, from which I dissented in part, failed to guarantee a truly
competitive broadband market in the ATG service. Moreover, if Airfone
wins the exclusive three megahertz license, it will control the four
megahertz of 800 MHz ATG spectrum for the foreseeable future.  To make
matters worse, our only real hope for competition in the broadband
market may be the holder of the one megahertz 800 MHz ATG license, and
Airfone may have the ability to block that new entrant from entering the
market until May 2010.

I am pleased that my colleagues agreed to put in place rigorous
reporting requirements on Airfone to help us provide oversight to
prevent unnecessary delays in its transition from a four megahertz
narrowband system to a one megahertz system. This should give potential
bidders some comfort that the Commission will be monitoring the pace of
transition, which we will need to do effectively. Also, in the event
Airfone, or one of its affiliates, wins the exclusive three megahertz
license, we will put in place a second set of reporting requirements to
ensure that the company swiftly migrates its narrowband system to a
broadband one. The one megahertz licensee may be our only hope for any
type of broadband competition. If at all possible, we should try to get
the spectrum in the hands of that company as soon as possible. If
Airfone has essentially completed its migration from narrowband to
broadband, there is no reason to allow it to retain the one megahertz
license for the full five years. I will keep a close eye on these
reports, and I hope all of my colleagues will as well.

Ultimately, we could have taken a number of more specific actions to
support competition in the event Airfone wins the exclusive three
megahertz license. But we fail to do so today. For that reason, and for
other statements made in this item that rely on the portion of the
original Report and Order from which I dissented, I must concur in part
to this decision.