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 SEPARATE  STATEMENT  OF  COMMISSIONER  KEVIN  J.  MARTIN 
 Re:  Promoting  Efficient  Use  of  the  Spectrum  Through  Elimination  of  Barriers  to  the  Development  of  Secondary  Markets,  Second  Report  and  Order,  Order  on 
 Reconsideration,  and  Second  Further  Notice  of  Proposed  Rulemaking,  WT  Docket  No.  00-  230 


 In  May  of  last  year,  we  took  the  first  major  steps  to  facilitate  the  development  of  secondary  markets  in  spectrum.  In  that  First  Report  and  Order,  we  adopted  a  new  regime 
 for  spectrum  leases,  allowing  leases  for  which  there  is  no  change  in  de  facto  control  to  proceed  without  prior  Commission  approval  and  allowing  other  leases  to  use  a 
 streamlined  approval  process.  We  also  adopted  a  streamlined  approval  process  for  transfers  and  assignments  of  licenses.  Our  goal  was  to  legitimize  fully  market 
 transactions  in  spectrum  and  to  reduce  associated  transaction  costs. 
 Today’s  item  builds  on  that  framework,  further  reducing  transaction  costs  and  regulatory  delay.  Among  other  things,  we  adopt  even  more  streamlined  approval 
 procedures  for  spectrum  leases,  assignments,  and  transfers  that  do  not  raise  public  interest  concerns.  We  also  expand  the  reach  of  our  rules  to  additional  wireless  radio  services.  I 
 believe  that  these  changes  will  encourage  secondary  markets  to  flourish. 
 Together,  our  secondary  markets  rules  create  new  opportunities  for  licensees  with  under-  utilized  spectrum,  to  the  benefit  of  consumers.  A  carrier  with  a  business  plan  that 
 calls  for  serving  only  the  most  densely  populated  portions  of  its  service  area  now  has  every  incentive  to  lease  or  transfer  the  balance  of  their  spectrum  to  an  entrepreneur. 
 When  cognitive  radios  and  frequency-  agile  technologies  are  introduced  to  the  mix,  the  opportunities  multiply. 


 Additionally,  our  secondary  markets  rules  offer  the  promise  of  greater  wireless  deployment  in  rural  America.  For  example,  a  carrier  with  a  nationwide  license  can,  with 
 reduced  transaction  costs,  lease  or  sell  spectrum  to  rural  carriers  to  build  networks  in  rural  areas.  Rural  carriers  thus  have  the  potential  to  obtain  spectrum  and  build  networks 
 suited  to  their  particular  geography,  while  at  the  same  time  enabling  the  national  carrier  to  develop  partners  to  fill  out  its  footprint. 


 For  all  of  these  reasons,  I  am  pleased  to  support  this  item. 
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