Private Wireless Spectrum Use Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Private Wireless Spectrum Use Act''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) Competent management of the electromagnetic radio 
        spectrum includes continued availability of spectrum for 
        private wireless entities because of such entitiesD23/' unique 
        ability to achieve substantial efficiencies in their use of 
        this important and finite public resource. A private wireless 
        system licensee or entity is able to customize communications 
        systems to meet the individual needs of that licensee or end 
        user while using engineering solutions and other cooperative 
        arrangements to share spectrum with other private system 
        licensees and entities without causing harmful interference or 
        other degradation of quality or reliability to such other 
        licensees or entities. Accordingly, spectrum allocations for 
        the shared use of private wireless systems achieve a high level 
        of spectrum use efficiency and contribute to the economic and 
        social welfare of the United States.
            (2) Wireless communication systems dedicated to the 
        internal communication needs of America's industrial, land 
        transportation, energy (including utilities and pipelines), and 
        other business enterprises are critical to the competitiveness 
        of American industry and business in international commerce; 
        increase corporate productivity; enhance the safety and welfare 
        of employees; and improve the delivery of products and services 
        to consumers in the United States and abroad.
            (3) During the past decade, the Federal Communications 
        Commission allocation and licensing policies have led to 
        dramatic increases in spectrum available for commercial mobile 
        radio services while the spectrum available for private mobile 
        radio systems has decreased, even though the Commission 
        recognizes the spectrum use efficiencies and other public 
        benefits of such private systems and the substantial increases 
        in the use of such systems.
            (4) Spectrum auctions are designed to select among 
        competing applications for spectrum licenses when engineering 
        solutions, negotiation, threshold qualifications, service 
        regulations, and other cooperative means employed by the 
        Commission are not able to prevent mutual exclusivity among 
        such applications. Private wireless systems, on the other hand, 
        avoid mutual exclusivity through cooperative, multiple uses 
        generally achieved by the Commission, the users, or the 
        frequency advisory committees. Accordingly, the requirements of 
        such private wireless systems are accommodated within the 
        spectrum bands allocated for private uses. Since there is no 
        mutual exclusivity among private wireless system applications, 
        there is no need for the Commission to employ a mechanism, such 
        as auctions, to select among applications. Auction valuation 
        principles also do not apply to the private wireless licensing 
        process because the private wireless spectrum is not used on a 
        commercial, interconnected basis. Rather, such private 
        allocations are used for internal communications applications 
        to enhance safety, efficiency and productivity. Nonetheless, 
        there should be some payment associated with the assignment of 
        new private wireless spectrum, and the Commission can and 
        should develop a payment mechanism for this purpose.

SEC. 3. DEFINITIONS.

    Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is 
amended--
            (1) by redesignating paragraphs (33) through (52) as 
        paragraph (35) through (54); and
            (2) by inserting after paragraph (32) the following:
            ``(33) Private Wireless System.--The term `private wireless 
        system' means an infrastructure of telecommunications equipment 
        and customer premises equipment that is owned by, and operated 
        solely to meet the internal wireless communication needs of, an 
        industrial, business, transportation, education, or energy 
        (including utilities and pipelines) entity, or other licensee.
            ``(34) Private Wireless Provider.--The term `private 
        wireless provider' means an entity that owns, operates, or 
        manages an infrastructure of telecommunications equipment and 
        customer premises equipment that is--
                    ``(A) used solely for the purpose of meeting the 
                internal communications needs of another entity that is 
                an industrial, business, transportation, education, or 
                energy (including utilities and pipelines) entity, or 
                similar end-user;
                    ``(B) neither a commercial mobile service (as 
                defined in section 332(d)(1)) nor used to provide 
                public safety services (as defined in section 
                337(f)(1)); and
                    ``(C) not interconnected with the public switched 
                network.''.

SEC. 4. ALLOCATION AND ASSIGNMENT OF ADDITIONAL SPECTRUM.

    Part I of title III of the Communications Act of 1934 (47 U.S.C. 
301) is amended by inserting after section 337 the following:

``SEC. 338. ALLOCATION AND ASSIGNMENT OF SPECTRUM FOR PRIVATE WIRELESS 
              USES.

    ``(a) Rulemaking Required.--Within 120 days after the date of 
enactment of the Private Wireless Spectrum Use Act, the Commission 
shall initiate a rulemaking designed to identify and allocate at least 
12 megahertz of electromagnetic spectrum located between 150 and 2,000 
megahertz for use by private wireless licensees on a shared-use basis. 
The new spectrum proposed to be reallocated shall be available and 
appropriate for use by private wireless communications systems and 
shall accommodate the need for paired allocations and for proximity to 
existing private wireless spectrum allocations. In accommodating the 
various private wireless system needs in this rulemaking, the 
Commission shall reserve at least 50 percent of the reallocated 
spectrum for the use of private wireless systems. The remaining 
reallocated spectrum shall be available for use by private wireless 
providers solely for the purpose described in section 3(34)(A).
    ``(b) Order Required.--Within 180 days after the Commission 
initiates the rulemaking required by subsection (a), the Commission, in 
consultation with its frequency advisory committees, shall--
            ``(1) issue an order reallocating spectrum in accordance 
        with subsection (a); and
            ``(2) issue licenses for the reallocated spectrum in a 
        timely manner.''.

SEC. 5. REIMBURSEMENT FOR ADDITIONAL SPECTRUM ALLOCATED FOR PRIVATE 
              WIRELESS SYSTEM USE.

    Section 309(j) of the Communications Act of 1934 (47 U.S.C. 309 
(j)) is amended by inserting after paragraph (14) the following:
            ``(15) Spectrum efficiency for shared spectrum.--
                    ``(A) Within 120 days after the date of enactment 
                of the Private Wireless Spectrum Use Act, the 
                Commission shall initiate a rulemaking to devise a 
                schedule of payment to the Treasury by private wireless 
                systems, and by private wireless providers for the 
                purpose described in section 3(34)(A), in return for a 
                license or other ability to use a portion of the 
                spectrum reallocated under section 338. The schedule 
                shall be designed to promote the efficient use of those 
                frequencies.
                    ``(B) Within 180 days after the Commission 
                initiates the rulemaking required by subparagraph (A), 
                the Commission, after consultation with its frequency 
                advisory committees and after opportunity for comment, 
                shall adopt a schedule of payment in accordance with 
                subparagraph (A) and which it determines to be in the 
                public interest.
                    ``(C) In adopting the schedule of payments referred 
                to in subparagraph (A), the Commission--
                            ``(i) may not base a finding of public 
                        interest, convenience, and necessity on the 
                        expectation of Federal revenues for the use of 
                        such schedule of payment; and
                            ``(ii) shall take into account the private 
                        nature of the systems, the safety and 
                        efficiencies realized by the public as a result 
                        of these private uses, the amount of bandwidth 
                        and coverage area and geographic location of 
                        the license, and the degree of frequency-
                        sharing.''.

SEC. 6. SPECTRUM SHARING

    Section 309(j)(6) of the Communications Act of 1934 (47 U.S.C. 
309(j)(6)) is amended--
            (1) by striking ``or'' at the end of subparagraph (G);
            (2) by striking ``Act.'' in subparagraph (H) and inserting 
        ``Act; or''; and
            (3) by adding at the end the following:
                    ``(I) be construed to permit the Commission to take 
                any action to create mutual exclusivity where it does 
                not already exist.''.

SEC. 7. CONFORMING AND TECHNICAL AMENDMENTS.

    (a) Private Mobile Service.--Section 332(d) of the Communications 
Act of 1934 (47 U.S.C. 332(d)) is amended--
            (1) by inserting ``and'' after the semicolon in paragraph 
        (1);
            (2) by striking ``(c)(1)(B); and'' in paragraph (2) and 
        inserting ``(c)(1)(B).''; and
            (3) by striking paragraph (3).
    (b) Application of Spectrum-use Payment Schedule to New Licenses.--
Section 337(a)(2) of the Communications Act of 1934 (47 U.S.C. 
337(a)(2)) is amended by inserting ``or spectrum use payment schedule'' 
after ``competitive bidding''.
    (c) Exemption From Competitive Bidding.--Section 309(j)(2) of the 
Communications Act of 1934 (47 U.S.C. 309(j)(2)) is amended--
            (1) by striking ``or'' at the end of subparagraph (B);
            (2) by striking ``Act.'' in subparagraph (C) and inserting 
        ``Act; or''; and
            (3) by adding at the end thereof the following:
                    ``(D) for private wireless systems, and for private 
                wireless providers for the purpose described in section 
                3(34)(A), that--
                            ``(i) are used to enhance the productivity 
                        or safety of business or industry; and
                            ``(ii) are not made commercially available 
                        to the public, except for that purpose.''.
    (d) Technical Amendment.--Section 271(c)(1)(A) of the 
Communications Act of 1934 (47 U.S.C. 271(c)(1)(A)) is amended by 
striking ``3(47)(A),'' and inserting ``3(49)(A),''.

Summary: Requires the FCC to: (1) devise a schedule for payments to the Treasury for shared-use spectrum used by private wireless systems; and (2) adopt a payment schedule determined to be in the public interest.
Prohibits competitive bidding requirements from being construed to permit the FCC to take any action to create mutual exclusivity where it does not already exist.