1 STATEMENT OF CHAIRMAN JULIUS GENACHOWSKI Re: Amendment of Part 101 of the Commission’s Rules to Facilitate the Use of Microwave for Wireless Backhaul and Other Uses and to Provide Additional Flexibility to Broadcast Auxiliary Service and Operational Fixed Microwave Licensees; Petition for Rulemaking filed by Fixed Wireless Communications Coalition to Amend Part 101 of the Commission's Rules to Authorize 60 and 80 MHz Channels in Certain Bands for Broadband Communications; WT Docket No. 10- 153. Today, we implement another key recommendation of our National Broadband Plan by unleashing additional spectrum to help drive our economy. We do so by removing regulatory barriers to efficient spectrum use and rapid broadband build-out. Today’s Order is a trifecta: It’s another important step in our spectrum agenda, recognizing the powerful role that wireless communications can play in economic revitalization. It’s another important step in our Broadband Acceleration Initiative, recognizing the importance to job creation of accelerating broadband build-out and reducing its costs. And it’s another important step in our regulatory reform agenda, recognizing our ongoing commitment to remove or reform outdated regulations. Let me briefly discuss each. First, spectrum is the invisible infrastructure that enables mobile communications, and mobile communications are growing more rapidly than ever. There are now more smart phones being sold than PCs, and smart phones use 24 times as much spectrum as traditional feature phones. Tablets, which didn’t even exist two years ago, use 122 times as much. Without additional spectrum for mobile broadband, demand will soon exceed supply. Voluntary incentive auctions would provide a market-based mechanism to address the Nation’s rapidly growing need for spectrum; yield many billions of dollars for taxpayers and the construction of a nationwide, interoperable public safety broadband network; and lead to the creation of thousands of jobs and billions of dollars in private investment. That’s why the concept enjoys bipartisan support in Congress and is advocated by 112 economists from across the political spectrum. Incentive auctions aren’t the only item on our spectrum agenda. Across the board, we have been working together to remove restrictions that unnecessarily keep spectrum locked up. Today we remove more needless restrictions. Backhaul is the skeleton supporting broadband, and wireless backhaul is often a very efficient means of transmitting data among cell sites, or between cell sites and network backbones. Spectrum, in other words, can be an important part of the “middle mile” of broadband networks. And indeed, wireless technology is an increasingly important source of backhaul – particularly in rural and remote locations it may be the only practical high-capacity backhaul solution available. So today, by eliminating unnecessary restrictions on the use of this spectrum, we encourage spectrum efficiency and free up more spectrum to help drive economic and public benefits. Second, broadband is a bright spot in our economy. Wired and wireless broadband connects people and their communities to the larger economy and opens up new worlds of commerce and opportunity, promoting innovation, investment, and new jobs. Just last week, I was proud to visit 2 Jeffersonville, Indiana, to announce a broadband-based initiative that will create 100,000 call center jobs over the next two years. That announcement would not have been possible without broadband infrastructure, which is essential for customer service reps at call centers to process transactions; access records; manage accounts and information; and engage in VoIP calls, emailing, and live text chatting. Making sure broadband infrastructure is everywhere is, plain and simple, a job-creation strategy. That’s why we launched our Broadband Acceleration Initiative, focusing on ways to reduce barriers to broadband infrastructure deployment, to speed broadband build-out and reduce costs. We’ve already established a shot-clock for the approval process for siting wireless towers and antennas and adopted a comprehensive reform of our pole attachment rules, making it easier and more efficient for wired and wireless broadband providers to attach equipment to telephone and utility poles. I’m pleased that last week, the D.C. Circuit Court of Appeals denied a motion to stay application of our pole attachment rules. This is consistent with our 94% success rate where a direct statutory challenge is made to an FCC order and with our success rate in the D.C. Circuit, where in 3 of every 4 cases the Commission wins on every single issue presented, and we prevail on some or all issues 91% of the time. I thank FCC General Counsel Austin Schlick and his talented staff for their great work on this matter. Our action today is another important milestone in our Broadband Acceleration Initiative – particularly in accelerating broadband in rural areas covering half the land mass of our country. And finally, our action today is another important milestone in our regulatory reform agenda. Simply put, today we are lifting unnecessary and outdated regulatory restrictions on spectrum use. As I’ll discuss in more detail when we consider our next item, from Day One we have been committed, and we remain committed, to removing unnecessary and outdated regulatory requirements from our books. While the actions we take in today’s wireless backhaul item are somewhat technical in nature – more of the blood and guts of the FCC’s doing its job – this Order will help Americans and our economy. It will do so by advancing the agency’s spectrum agenda, Broadband Acceleration Initiative, and regulatory reform agenda. By freeing up spectrum for backhaul in rural areas, we’re enabling service providers to extend broadband services more efficiently to rural and underserved communities and to improve broadband speeds where service already exists. We’re helping rural economies and rural consumers. There is a public benefit as well. The further step we take today of permitting microwave licensees to take advantage of the latest technology and maintain the reliability of critical links can help make the difference in ensuring that emergency communications – including 9-1-1 calls – are maintained in severe weather. We recognize that there is potentially more we can do to lift restrictions and free up more spectrum for wireless backhaul – which is why the Further Notice we adopt today explores additional ideas for making microwave communications more flexible and cost-effective. Thank you to my colleagues on the Commission and to the staff of the Wireless Telecommunications Bureau for their hard work and creative thinking on ways in which we can remove regulatory barriers, make more spectrum available for critical services, and increase spectrum flexibility.