Public-Private Partnership: The Auction

As structured by the FCC, two adjacent spectrum license-holders would collaborate so that their combined spectrum capacity would be adequate to support a broadband network. In anticipation of obtaining a commercial partner, the FCC assigned a national license for 10 MHz to a not-for-profit corporation formed to represent public safety interests. In an Order adopted and released on March 20, 2008, the FCC directed the Wireless Telecommunications Bureau not to proceed with the re-auction of the D Block because it is "in the public interest to provide additional time to consider all options ..."
The FCC therefore initiated a review of its rules regarding licensing, structuring a partnership, setting service requirements, and other rules and obligations established prior to the commencement of Auction 73. It prepared a further notice of proposed rule-making that sought comments on identified options that might be pursued in disposing of the D Block. The FCC and the Office of Emergency Communications at the Department of Homeland Security (DHS) are pursuing separate paths for developing this communications response. As discussed below, the FCC has proposed to resolve these needs through levies on the commercial partner or requirements for performance. The key elements for a public-private partnership as set forth by the FCC are: 1) a Public Safety Broadband Licensee; 2) a public-private partnership; and 3) a Network Sharing Agreement, required in order to build and manage a network shared by commercial users and emergency personnel. Although it is outside the power of the FCC to assign the D Block to public safety, with the assistance of Congress it would be possible to create a broadband network for public safety at 700 MHz using the existing Public Safety Broadband License and the D Block. The FCC seeks opinions and information on a wide range of questions covering such topics as: provisions and eligibility for using the Public Safety Broadband License; revisions to the public-private partnership, negotiation of the Network Sharing Agreement; structuring the new auction of the D Block; relocation costs and deadlines for changes in 700 MHz frequency assignments; service rules for the D Block; and other opportunities for providing broadband wireless access for public safety. Regulatory Governance Through Service Rules

The FCC followed past procedures in the creation of service rules to establish the structure for a public-private partnership as part of its preparation for the auction of licenses in the 700 MHz band. Network Sharing Agreement (NSA) that the two licensees would be required to create in order to build and manage a shared network. Proposed Legislation to Fund Operating Costs

The Public Safety Broadband Authorization Act of 2008 ( H.R. 6055 , Harman) would provide $1 million in both FY2009 and FY2010 for operating expenses of the Public Safety Broadband Licensee. Appropriations for an additional $2 million would be authorized for used by the FCC "to promote the establishment of a nationwide, interoperable broadband public safety communications network." Proposed Legislation to Fund Radios

The Reliable, Effective, and Sustained Procurement of New Devices for Emergency Responders (RESPONDER) Act of 2008 ( S. 3465 , Wicker) would create a First Responders Interoperable Device Availability Trust Fund to provide grants to purchase interoperable radios for the new public safety network proposed for some of the channels being released in the transition to digital TV.
This report summarizes salient points of Federal Communications Commission (FCC) actions regarding the creation of a public-private partnership to build and manage a national communications network for public safety use. The Communications Act of 1934, as amended, empowers the FCC to set rules for auctions and to take steps to ensure the safety of the public. The FCC has used this authority to design a governance structure that would allow a Public Safety Broadband Licensee (PSBL) to share spectrum rights with a commercial enterprise and to collaborate in the construction and management of a shared network. As currently proposed by the FCC, a public-private partnership would build a shared network on spectrum capacity assigned to two separate license-holders. In the FCC plan, the PSBL would hold a national license of 10MHz in the 700 MHz band and a commercial partner would hold an adjacent license for 10 MHz, nationwide, designated as the D Block. The two licensees and the network would operate according to requirements set out by the FCC as part of its rulemaking for the auction of frequencies within the 700 MHz band. These frequencies are being vacated by television broadcasters in their switch to digital technologies.
In an auction that ended on March 18, 2008, the one bid for the D Block was well below the reserve price set for that license. The FCC therefore did not assign the license but has proceeded to review its rules regarding licensing, structuring a partnership, setting service requirements, and other rules and obligations established prior to the commencement of Auction 73. It has prepared a further notice of proposed rule-making that seeks comments on identified options that might be pursued in disposing of the D Block. The FCC's current proposals for the creation of a nationwide, interoperable public safety broadband network depend on the successful sale of the D Block to a commercial entity willing to invest in a public-private network partnership. The FCC auction requirements do not reference Congress's requirements for the Department of Homeland Security to provide a national communications capability (P.L. 109-295, Title VI, Subtitle D).
Some of the proposals from the FCC or frequently mentioned by industry experts are reviewed in this report. Some of the possible solutions can be achieved exclusively through the rule-making process but several that address how best to salvage plans for a nationwide, broadband network for public safety would require the assistance of Congress through legislation. A bill that would provide financial assistance to the Public Safety Broadband Licensee through grants made by the FCC has been introduced. The Public Safety Broadband Authorization Act of 2008 (H.R. 6055, Harman) would establish conditions for the operations of the PSBL and would provide $1 million in both FY2009 and FY2010 for expenses. An additional $2 million would be authorized for used by the FCC "to promote the establishment of a nationwide, interoperable broadband public safety communications network." The Reliable, Effective, and Sustained Procurement of New Devices for Emergency Responders (RESPONDER) Act of 2008 (S. 3465, Wicker) would create a First Responders Interoperable Device Availability Trust Fund to provide grants to purchase interoperable radios for the new public safety network.