the subcommittee will come to water today the subcommittee needs to approve two bipartisan measures related to the availability of wireless spectrum which is essential to meeting our future needs for mobile communications services the movement of personal communications to mobile services is both dramatic and accelerating earlier this year it was announced of that for the first time the number of homes having only a cellphone and landline service now exceeds the number of homes having only a landline and no cellular service at the end of two thousand and eight there were approximately two hundred seventy million wireless subscribers in the united states including an estimated forty million active users of mobile internet based services daily new attractive and useful applications are added to the wireless service inventory and data rates continue to increase as consumers require faster access to mobile applications as more and more americans use data and since eve smartphones and services like mobile video emerge the demand for spectrum to support these applications and devices will continue to grow dramatically additional spectrum for commercial wireless services will be needed and it will be needed soon today the subcommittee continues its effort to meet these challenges with the goal of enhancing the consumer experience and facilitating the future growth of mobile services the first a necessary step is obtaining a thorough understanding of current spectrum users and of their uses of the spectrum that they have been assigned revealing areas where real locations could occur or where spectrum sharing may be feasible in july joined with chairman waxman with full committee ranking member barton and with subcommittee ranking member stearns and introducing h r thirty one twenty five the radio spectrum and tori act this measure directs the n t i a and the f c c to undertake a comprehensive survey of the nation's spectrum and develop an inventory of each a spectrum band in the  us table of frequency allocations between two hundred twenty five megahertz and three point seven gigahertz with a possible extension to ten gigahertz the inventory would include the identity of federal and nonfederal users and the types of services they offer in each spectrum by and and the amount of use of each band on a geographic basis across the nation when the inventory is completed the n t i a and the f c c will create a website to make the inventory publicly available and they will report the results of the infant tory to the congress the report will include a description of information that could not be made publicly available for national security reasons it will also include a recommendation of which if any of the least utilized blocks of spectrum could be reallocated for commercial uses the creation of the inventory as an essential step in making available more spectrum for commercial and wireless services meeting the extraordinary spectrum demands that our nation will soon face i've also joined with our colleagues jay  introducing h r thirty nineteen the spectrum reallocation improvement act this measure but address the urgent need which was brought to light after the f c c auctioned the advanced wireless services spectrum in two thousand and six while that spectrum was optioned more than three years ago the winners of the commercial licenses still do not have full use of the spectrum because it has not been fully cleared by the government users the bill would hasten the process of clearing federal users from spectrum that the government has reallocated for commercial use it would require the n t i a to publish the transition plan of each federal entity to be relocated after a spectrum auction it would clarify the steps fact from spectra federal spectrum users must take to receive payment for their relocation costs from the spectrum relocation fund including a requirement that the reallocation be completed within one year as i indicated during the subcommittees legislative hearing on these two measures in december my goal is to move both of the  bills through our committee and also through the house at the earliest possible time and i'm pleased today that we're taking the first step in that process i want to thank chairman waxman ranking members barton and stearns mr  upton and members of the subcommittee who have co sponsored these measures for our work together on a bipartisan basis as we take steps to make sure that our nation's spectrum needs are met that concludes my opening statement on please now to recognize the ranking republican member of our subcommittee the gentleman from florida mr stearns good morning and thank you mr chairman and thank you for having us here and it's a pleasure to consider these very important to spectrum related bills both bills are positive steps forward in promoting good spectrum management h r thirty one twenty five requires the n t i a and the f c c to conduct an inventory of radio spectrum which is a critical first step in a dental filing additional spectrum that might be used for wireless broadband h r thirty nineteen improves the existing process by which we pay to simultaneously upgrade and relocate federal agencies spectrum resources in exchange for clearing spectrum for commercial use i am a co sponsor of both pieces of legislation and urged adoption while this legislation will help set up for the future let's not forget there is a spectrum we need to address in resources we do not necessarily need to address these issues in this legislation however mr chairman i trust that i can have your assurance that we will discuss issues surrounding this already available spectrum before we move to full committee the markup on these bills it's very clear that us will need additional spectrum to meet the growing demand for wireless broadband in fact we are a victim of our own success the united states currently leads the world in wireless wireless providers have you spectrum to provide us consumers with innovative voice data services the number of mobile voice customers in the united states has surpassed the number of  wireline customers and the number of mobile broadband customers has increased exponentially over the past several years as customers increase the amount of time they spend on their mobile devices talking emailing and surfing the internet site become constrained for capacity as a result providers need more spectrum we are facing in the words of the chairman jenna koski a looming spectrum crisis for example a voice call requires approximately ten thousand bits per second uploading and downloading video requires millions of bits per second countries will need one thousand three hundred megahertz of spectrum dedicated for commercial use by the year two thousand and fifteen according to the international telecommunications union yet the united states currently has only five hundred megahertz allocated and only fifty megahertz in the auction pipeline so in order to increase the amount of spectrum available for commercial mobile services the ministration and the f c c need to inventory the current uses of spectrum bands especially those below three gigahertz that are ideal for mobile services the bottom line is that we need to know who uses which spectrum bands and the purposes for which they use such bans once we have the answers to these questions the government needs to decide whether to reallocate spectrum for commercial mobile use if the government is requiring sifting spectrum users to vacate reallocated bans the government also needs to establish a meaningful process for real allocating incumbent users the process needs to begin sooner rather than later inventory reallocation and relocation all take time and commercial mobile demand for spectrum is increasing as i mentioned exponentially for them or furthermore my colleagues one way to make more spectrum available for commercial purpose is to use government spectrum more efficiently and reallocate the spectrum that is saved that was the idea behind the commercial spectrum unhandsome act which was in acted in two thousand and four the laws and the price proceeds are used to improve the reallocating agency's wireless facilities the relocation procedures outlined in the c s worked well in most cases but some problems have cropped up for example t mobile paid four point two billion to build a three g network some agencies are behind schedule in clearing some of the spectrum however because of unforeseen cost and complexities in their moves which have been compound and by the confidential nature of some of the agency's activities problems like these may discourage participation in future reallocation auctions h r thirty nine hundred will make the process more efficient the goal is to better coordinate of commercial bitters have increased confidence to bid on the clear spectrum this not only helps the commercial better but also the reallocating agencies since they will have increased revenue from the option and a better plan transition so mr chairman thank you for holding this hearing and i look forward to the passage of both bills thank you very much mr stearns and thanks for your cooperation and partnership as we have drafted these measures and as we move them forward the gentleman from california mr mcnerney is recognized for an opening statement for three minutes thank you mr chairman all i want to say is that i'm appreciative of the work that's being done here especially since it's bipartisan this is critical work that needs to be done both reallocating the spectrum and and getting in in the tories so i applaud your work making sure agencies clear within the time period so you've restricted the time you say or within one year you also then give this waiver authority but i would like to work with you on figuring out what's the best way that we can incentiv do we move the monies earlier or if they don't clear within that one year then what and and so between this mark and the full committee i'd like to work with you on exploring some been sure gentleman yield yes i think the gentleman for that very useful suggestion and i look forward to having conversations with you as we explore ways particularly to provide incentives i think that is useful and there is the potential possibly to make funds from the spectrum reallocation trust fund available more readily for users who vacate very quickly we could certainly talk about the possibility but thanks for the suggestion i look forward to th i'm an original co sponsor and the spectrum reallocation improvement act the spectrum issue is important because modern consumers expect to be able to transmit to transmit more and more  data over the airwaves when the last major telecommunications overhaul was passed in one thousand nine hundred six cell phones were still considered a luxury and today with the advent of sophisticated smartphones and mobile media platforms people have gone from making voice calls on the wireless spectrum to watching digital digital t v downloading music in feature films streaming streaming live content and accessing the internet all of requires spectrum so moving forward it is imperative that the united states have a cohesive spectrum policy to deal with increased demand on this limited resource to build we will move this morning are a critical first step in developing that policy today when it comes to spectrum we are resource resource rich and information poor the first step must be a must be to take into account what spectrum is being used how and where that is why i was pleased to co sponsor the radio spectrum inventory act which will require n t i a and the f c c to develop an inventory of the spectrum including where when and how each band is currently being used this bill is similar to the broadband mapping provisions that this congress passed in the recovery act in the sense that it will provide a framework for the congress and all of us to fill in the information gaps that stand in the way of had to best utilize that i along with many others on this committee have long advocated for an effective and efficient inventory of what is available before we can best know how to use and allocate optioning is an effective and efficient way to move the ball forward on our goal of universal broadband deployment and as we continue to discuss spectrum i would hope this is committee will always remain mindful of the spectrum not located in the d block or the ada b s three my hope is that we can have an open conversation with our colleagues sooner rather than later on how to best deploy that spectrum in addition to working on this legislation when we did our hearing in december on these two bills we learned from the u s wireless industry that they are the world leader in wireless broadband and that action is necessary to help the industry to retain that leadership position and that's a point that they made well and made several times the two bills the subcommittee marks up to day are important steps in that direction and i do think it's the right direction but they will not amount to much unless we coupled these efforts with a firm commitment to use the inventory to reallocate significant amounts of spectrum for auction to commercial users many of our trading partners including the u k germany and japan already have made this type commitment and it's important that we keep up so that our wireless industry can continue to meet the growing demand for innovative products and teams which i introduce along with you as well as mr inslee we know that the economy is struggling and this bill encourages private investment in broadband infrastructure one of the few sectors where we're seeing new investments which will in turn help create lots and lots of jobs the bill aims to remove impediments that could prevent or delay capital investments by companies seeking to provide wireless broadband services to customers current we know that the current federal spectrum relocation process was created as a win win opportunity proceeds from the options would be used to upgrade and relocate government wireless use while simultaneously freeing the cleared spectrum for commercial use complexities in the relocation process however have effectively prevented a number of companies that cumulative invested over thirteen billion dollars in spectrum bids and billions more in equipment and infrastructure from deploying wireless broadband services given the that we need to provide real certainty for companies putting up this money and speed up the government's process with impediments that exist today capital investments are being stranded in the values of future options are being depressed not to mention the potential for job creation has diminished as a consequence so this bill and to do to fix the problem by streamlining the auction relocation process important legislation i look forward to working with you and m have been discussed before i arrived but i think this bill appropriately is considered part of our job creation strategy because it really does have the opportunity to create whole new horizons for job creation in this country and we know that in my state technology base industries account for forty percent of the jobs and i think other states have that potential and we know that that  that potential is not going to be realized unless we in fact do utilize the spectrum appropriately so i don't think sharon waxman boucher ranking members barton stearns for helping us move this proposal and twelve members of my colleagues on this  committee i'll just briefly note that fundamentally this is going to allow the full use of spectrum in a rational sense and expedite the flow of auction proceeds to make sure the relocating agencies can keep this process on track and i want to thank my colleagues for helping us move this bill is part of our job creation strategy the united states thank thank you very much mr ensley the gentleman from oregon mr walden is recognized for three minutes thanks very much mr chairman and i appreciate the hearing and i'm ranking member on our side on our oversight hearing on crip safety that's going on concurrent with this hearing so i'm going to be this market chairman thanks for holding a hearing on these bills i'm a co sponsor of the spectrum relocation improvement act the bill's intent is to break down bureaucratic roadblocks and who can oppose that the other bill in today's docket the radio spectrum inventory act as a necessary step to address consumers there is for the next generation of innovative wireless devices and i plan to support both bills mr chairman however i'd like to work with you to improve the spectrum him and torrie act particularly the section on non disclosure of federal spectrum an issue has been brought to my attention involving the nation's power grid and the use of spectrum and the security issues surrounding that spectrum that i'd like to to work with you on  power market administration's like bonneville that operates over three fourths of the pacific northwest regions high voltage transmission are impacted by this spectrum in tory bill so too are the southeastern power administration southwest power administration in the western area power  administration was brought to my attention last night by bonneville power that they have currently keep information with respect to their spectrum use in a locked vault with vast strict accessibility standards because the power grid of the entire pacific northwest could be brought to its knees  intentioned people found out much about how they operated the amendment in the nature of a substitute this before us this morning including a section that allows federal entity s with spectrum assets to not publicly disclose those assets if the secretary of the federal agency that houses the s s determines that it would jeopardize national security or public safety i'd like to work with you to modify that language so rather than only permitting the secretary of an agency to make that determination that officials at the assistant secretary level with oversight responsibility for the use of that spectrum can make the determination on what is too sensitive to publicly disclose this would allow officials such as the administrator of the bonneville power administration who best knows the operations of the regional power grids to keep highly sensitive information out of the hands of those that might want to do our country harm the written views of the administration released on h r thirty one twenty five and its senate companion bill note that this change would improve the bill so the administration like this i hope you'll work with me between now and then i do have an amendment drafted up that would deal with this i apologize for not getting to you sooner we just found out last night that this is still an issue that they are very concerned about with the waiver authority for circumstances where users even if their nonfederal users could claim that there is some potential adverse effect on public safety or national security with disclosure had and then steps to follow a waiver is in fact granted under those conditions and we would be happy to consider further modification of this section along the lines you recommend so we are open to the conversation and i would suggest that perhaps  in can on you mr upton to show great leadership and move these bills for committee thank you very much mr barton and i thank you also for the bipartisan work we've done on these two measures the gentle lady from california is recognized for three minutes thank you mr chairman for moving so expeditiously toward the creation of the new tools that are necessary for developing a comprehensive national spectrum policy today's markup really demonstrates that a firm commitment to deploying a scarce resource that is essential to america's commercial competitiveness as it is to our national security and i just left  an intelligence committee meeting that touches on this very issue we need to develop a systematic approach that catalogs available spectrum and makes this information readily available that's why i'm co sponsor of the radio spectrum inventory act in order to mine this precious resource we need to know where it's available and i've emphasized in the past my commitment to reconciling national security with commercial spectrum uses and i'm pleased that the bill balances these objectives and i think it's an important point for all of us to appreciate here i also support many of the principles in the spectrum relocation improvement act and i commend mr insulated mr upton to a for developing that legislation i agree that we need to move spectrum to its intended use as quickly as possible spectrum stakes are high any time we convene a hearing or a markup on this issue a wide ranging variety of competitors five for the resource the development of a national broadband policy requires the patience of job the wisdom of solomon and the genius of einstein perhaps that's why the f c c will miss its deadline for producing it version of the national broadband plan and i look forward to reading the important document when we receive it i also want to urge the f c c to release spectrum in its own inventory including the a w s three band in a manner that promotes widespread broadband adoption fosters innovation encourages economic growth and increases employment opportunities that's really essential especially where we are economically in the country today it's time for a spectrum plan that encourages nationwide competition in the meantime we're going to move forward today with our work and create the framework for the identification and the deployment of essential spectrum so that the f c c can fulfill its role of allocating and i'm signing this important national resource so thank you again for your the perp leadership mr chairman and i yield back thank you very much ms issue without objection the opening statement of all members will be made a part of today's record the chair now calls up h r thirty one twenty five the clerk will report the title of the bill h r thirty one twenty five a bill to require an inventory of radio spectrum bands managed by the national telecommunications and information administration and the federal communications commission without objection the bill will be considered as read and open to amendment at any point and recognize myself for the purpose of recommendations that the subcommittee has received from a wide array of stakeholders including the administration industry and other interested parties and i want to express appreciation to  e the f c c one year rather than the originally contemplated six months to create the spectrum inventory which the bill requires it mandates that the spectrum inventory cover from two hundred twenty five megahertz three point seven gigahertz but gives the agency's discretion regarding whether to extend the inventory further to as high as ten gigahertz with the thought that these higher frequencies might hold promise for future commercial applications it requires that the spectrum inventory include a description of the activities capabilities functions or missions that are supported by the devices in each band of frequencies search provisions assuring that the inventory will be updated on an ongoing basis so that it remains current and dynamic over time it changes the requirement that the n t i a and the f c c report to congress regarding the lease to utilize the blocks of spectrum which might not accurately reflect which spectrum could or should be reallocated to a recommendation that the agencies inform us which spectrum if any should be reallocated or otherwise made available for shared access with an explanation of the basis for that recommendation it clarifies that the agency should identify a spectrum not only for reallocation but also for possible shared access and it revises the national security section of the bill to provide a new mechanism for federal agencies to notify the m t a and withhold certain information if the head of the agency determines that disclosure would be detrimental to national security to homeland security or to public safety the agency had must provide to the n t i a the publicly releasable information  and also provide a summary description of the information being withheld and then in an appendix include the withheld information for review and used by the congress licensees of nonfederal spectrum may seek a waiver from the f c c for information they believe may be detrimental to national security to homeland security or public safety as i mentioned earlier the amendment in the nature of a substitute results from bipartisan discussions and discussions with interested stakeholders and i want want to thank all who have participated with us in this collaborative process do other members desire recognition for purposes of discussing the amendment in the nature of a  substitute does any member seek recognition for purposes of offering an amendment to the amendment in the nature of a substitute the question then occurs on approving the amendment in the nature of a substitute all those in favorable say i am those opposed no the ayes have it and the amendment is approved are there well the question now occurs on reporting the the bill as amended to the full committee with a favorable recommendation those in favor will say aye those opposed the ayes have it and the bill as amended is recommended to the full committee thirty nineteen the clerk will report the title of the bill h r thirty nineteen a bill to amend the national telecommunications and information administration organization act to improve the process of reallocation of spectrum commercial users without objection the bill will be considered as read and open for amendment point does any member seek recognition for purposes of offering an amendment to the legislation  the chair hears not on the question then occurs on reporting h r thirty nineteen to the full committee with a favorable recommendation those in favorable say i those  opposing the ayes have it and the bill is reported to the full committee with a favorable recommendation there be no further business to come before the subcommittee today this market stands adjourned with thanks to all the members for their cooperation