JAY INSLEE
1ST DISTRICT, WASHINGTON
The Honorable Julius Genachowski
Chairman
Federal Communications Commission
445 12
th
Street SW
Washington, DC 20554
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September 19, 2011
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COMMITIEE ON ENERGY AND COMMERCE
ENERGY AND POWER
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Dear Chairman Genachowski:
I am writing to express concern about the Commission's current policies surrounding microwave
spectrum. First, I would like to commend you for your commitment to spectrum efficiency. Under you
leadership, the Commission has taken numerous steps to identify and repurpose numerous spectrum
bands, in order to facilitate additional marketplace interest. It is important that the policies surroundi g
such a scarce public resource encourage efficient usage to the widest number of commercial entities
feasible.
The Commission recently improved the rules surrounding microwave spectrum to foster more robust
usage. Nonetheless, certain licensing policies of microwave spectrum went unchanged, despite
significant evidence suggesting they result in inefficient usage. As you are aware, the Commission
currently provides licenses in the 11, 18 and 23 GHz bands on a first come, first served basis. This invite
entities to expend the minimal application processing fee amount and acquire a spectrum license,
despite little intention to fully utilize the spectrum.
Unfortunately, these practices make it difficult to identify available microwave spectrum in certain
areas. At present, potential licensees are discovering that the inefficient utilization ofspectrum has a
chilling effect on their ability to enter into certain markets - with rejections from third party spectrum
coordinators indicating that no additional licenses are available. As a result of the present environment
investment in services like wireless backhaul is unnecessarily hampered. This can have a detrimental
effect on both the economy and wireless customers. As such, I request that you please provide me wit
information regarding the extent of these rejections, whether through the Commission or third party
spectrum coordinators.
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While I recognize that the law currently prevents the Commission from considering the effect spectrum
policy would have on auction revenues, maximizing spectral efficiency will inherently increase its value. I
am concerned that the current cost to gain a lO-year license for these microwave spectrum bands does
not reflect the fair market value this spectrum possesses. In the current era of fiscal austerity, itis
important that the Commission create policies that refleGt marketplace demand for spectrum.
Just last year, you remarked that the Commission has "got to work on spectrum policies that generate
greater efficiency," I agree, and urge you to implement improvements to the policies surrounding
microwave spectrum. These may include reducing the license term, increasing licensee oversight,
additional utilization requirements and transitioning to an auction regime. A combination ofthese steps
will encourage greater efficiency while better reflecting the value of microwave spectrum. It is critical
the Commission do all it can to foster innovation, efficiency. and value within our Nation's spectrum
bands.
cc:
Commissioner Michael J. Copps
Commissioner Robert M. McDowell
Commissioner Mignon Clyburn