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 STATEMENT  OF  COMMISSIONER  JONATHAN  S.  ADELSTEIN 
 Re:  Facilitating  the  Provision  of  Spectrum-  Based  Services  to  Rural  Areas  and  Promoting  Opportunities  for  Rural  Telephone  Companies  to  Provide  Spectrum-Based 
 Services;  WT  Docket  No.  02-  381 
 At  our  last  open  meeting,  we  shed  an  important  light  on  the  Commission’s  ongoing  efforts  to  support  the  deployment  of  basic  and  advanced  telecommunications  services  to 
 those  Americans  living  in  our  Nation’s  rural  communities.  At  that  time  I  highlighted  my  goal  of  implementing  policies  that  provide  for  and  maintain  a  rural  telecommunications 
 system  that  is  second  to  none.  In  that  light,  I  am  very  pleased  to  support  this  Notice  of  Proposed  Rule  Making  (NPRM)  because  spectrum-  based  communications  can  play  such 
 an  integral  part  of  that  telecommunications  network. 
 The  NPRM  tackles  a  number  of  the  issues  that  I  believe  are  so  critical  to  promoting  the  provision  of  spectrum-  based  services  in  rural  areas.  Not  only  do  we  address  the  nuts  and 
 bolts  of  how  we  define  “rural,”  but  we  also  look  at  some  of  the  more  challenging  issues  such  as  performance  requirements  and  relaxed  power  limits  for  licensed  services. 


 I  am  particularly  supportive  of  the  request  for  comment  on  ways  the  Commission  can  support  the  USDA’s  Rural  Utilities  Service  (RUS)  Telecommunications  Program.  As  I 
 mentioned  at  our  last  meeting,  I  had  the  privilege  of  working  on  legislation  authorizing  and  providing  funds  to  the  RUS  for  deployment  of  broadband  services  in  rural  areas 
 when  I  was  a  staffer  in  the  Senate  as  part  of  last  year’s  Farm  Bill.  It  is  so  worthwhile  to  explore  how  the  Commission  can  support  the  wireless  applications  of  this  program,  as  I 
 truly  believe  that  spectrum-  based  services  offer  great  potential  to  Rural  America. 
 I  also  am  pleased  to  support  our  limited  question  on  the  ability  of  the  Commission  to  allow  security  interests  by  RUS  in  FCC  licenses.  I  very  much  appreciate  the  efforts  of 
 the  Wireless  Telecommunications  Bureau  staff  to  draft  a  section  that  presents  a  balanced  discussion  of  this  novel  issue.  I  take  very  seriously  Congress’  charge  that  we  manage  the 
 nation’s  airwaves  because  spectrum  is  a  finite  public  national  resource,  with  characteristics  unlike  that  of  any  other.  The  Commission  always  must  retain  the  authority 
 and  flexibility  to  regulate  the  rights  and  responsibilities  of  its  licensees.  RUS,  because  it  also  is  part  of  the  Federal  Government,  may  be  an  appropriate  holder  of  a  security 
 interest,  particularly  as  it  is  my  understanding  that  RUS  retains  the  security  interests  it  holds  through  its  rural  loan  program.  I  believe  that  the  document  as  drafted  weighs  these 
 important  considerations  in  asking  the  questions  of  whether  or  not  we  should  or  even  can  allow  RUS  to  hold  security  interests  in  FCC  licenses. 


 Finally,  while  I  do  have  some  concerns  with  the  question  of  a  possible  modification  to  the  cellular-  cross  ownership  rule,  I  am  encouraged  by  the  tentative  conclusion  to  retain  the 
 rule  for  those  RSA  that  are  served  by  three  or  fewer  providers.  I  believe  that  we  have  set  the  bar  sufficiently  high  to  changing  the  rule  for  those  mobile  wireless  markets  that  are 
 served  by  the  fewest  providers. 
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