In the Matter of                                    )
                                                               )
Mandatory Reimbursement Rules      ) Docket No. 001206341-0341-01
for Frequency Band or Geographic     )
Relocation of Federal Spectrum-         ) RIN 0660-AA14
Dependent Systems                              )

The Industrial Telecommunications Association, Inc. (ITA) hereby respectfully submits its reply comments in response to the National Telecommunications and Information Administration’s (NTIA) Notice of Proposed Rule Making in the above-referenced matter. As discussed in detail below, ITA agrees with commenters who state that governmental entities should not be required to relocate where it is technically possible for Federal incumbents to share reallocated spectrum with new licensees. In instances where spectrum sharing is feasible, the costly and time-consuming process of relocation can be avoided. In the event that relocation is deemed mandatory, however, ITA supports the reimbursement of federal incumbents through the implementation of cost-sharing plan administered by a clearinghouse.

ITA is a Commission-certified frequency advisory committee coordinating in excess of 6,000 applications per year on behalf of applicants seeking Commission authority to operate business and industrial/land transportation radio stations on frequency assignments allocated between 30-900 MHz.

ITA enjoys the support of a membership including more than 3,500 licensed two-way land mobile radio communications users, private mobile radio service (PMRS) oriented radio dealer organizations, and the following trade associations:

Alliance of Motion Picture and Television Producers

Aeronautical Radio, Inc.

Associated Builders & Contractors, Inc.

Florida Citrus Processors Association

Florida Fruit & Vegetable Association

National Mining Congress

National Propane Gas Association

National Ready-Mixed Concrete Association

National Utility Contractors Association

New England Fuel Institute

United States Telephone Association

In addition, ITA is affiliated with the following independent market councils: the Council of Independent Communication Suppliers (CICS), the Taxicab & Livery Communications Council (TLCC), the Telephone Maintenance Frequency Advisory Committee (TELFAC), and USMSS Inc.

In January of 2001, NTIA issued the above-referenced NPRM, which addresses rules governing the mandatory reimbursement of Federal licensees who must relocate or modify their frequency in order to accommodate the reallocation of spectrum to non-Federal users pursuant to the Omnibus Budget Reconciliation Act of 1993, the Balanced Budget Act of 1997, and future reallocations. The NTIA NPRM seeks comments concerning mandatory relocation and cost-sharing strategies, among other aspects of government relocation.

As discussed below, ITA agrees with commenters that the government should continue operations as necessary in their current frequency assignments, without relocating, if it is technically possible for new licensees to share the spectrum without harmful interference to either licensee’s operations. Should relocation be deemed mandatory upon entry of a new licensee, ITA advocates implementation of a cost-sharing plan administered by industry-supported clearinghouses.

A. Spectrum Sharing Without Mandatory Relocation

As NTIA correctly stated in the NTIA NPRM, "it may be technically possible for incumbent Federal entities to continue to share the reallocated spectrum with the new commercial licensees." As noted by many commenters, the relocation of government operations is not necessary if spectrum sharing is technically possible. For example, as AT&T Wireless Services Inc. states, "[t]o the extent that commercial users could reap substantially the same benefit from shared use of the spectrum as they would from exclusive use, spectrum sharing would be a far superior option to full relocation in terms of cost, time, and convenience." As Motorola explains, "when Government and non-Government users can share spectrum in a way that does not hamper deployment of services, such sharing should be facilitated." ITA agrees with these commenters. The relocation of government users may not be necessary in numerous instances. Licensees obtaining reallocated spectrum in former government bands could deploy systems around incumbent federal users’ systems, without overlapping contours, thereby making spectrum-sharing technically feasible. Such efficient use of spectrum by multiple users will promote the public interest and the congressional mandate that spectrum planning efforts include "actions necessary to promote the efficient use of the spectrum, including spectrum management techniques to promote increased shared use of the spectrum that does not cause harmful interference as a means of increasing commercial access."

By generating service area contours that do not overlap with federal incumbents, to the extent feasible, all parties can satisfy their differing spectrum needs and maximize use of limited spectrum resources. An example of the use of engineering and other solutions to permit spectrum sharing in frequency bands occupied by federal users can be provided in the Commission’s 700 MHz Guard Band proceeding. The 700 MHz guard band managers can lease spectrum to third-party users by working around the incumbent broadcasters through engineering solutions, frequency coordination, and other system-specific operating and technical standards. ITA contends that interference resolution methodologies, such as those that will be employed by 700 MHz guard band managers, serve as an example of how a protected contour approach is both efficient and unlikely to result in harmful interference to incumbent government stations. NTIA should allow auction winners to rely upon resources such as frequency advisors to evaluate proposed systems and either: 1) ensure that there will be no prohibited overlap with incumbent, governmental entities; or 2) begin a relocation negotiation process with the federal incumbent licensee. This policy would best serve the public interest when spectrum sharing is technically possible.

As an indirect benefit, sharing and voluntary relocation will expedite the auction process by reducing uncertainty. By allowing users who are technically capable of sharing the spectrum to avoid the costly process of unnecessarily relocating federal incumbents, would-be auction participants can form business models without introducing multiple variables based on questionable relocation amounts. Moreover, permitting spectrum-sharing will ensure the efficient and timely roll-out of actual services to the public. NTIA and other interested industry members need only look to the multitude of delays facing the auction of 30 MHz of spectrum for 700 MHz commercial services for a concrete example of the benefits of spectrum-sharing in facilitating the auction process.

B. Cost Sharing Plan with Administration by Clearinghouse (if Relocation is Mandatory)

If NTIA deems federal government relocation to be mandatory, interested parties should have an opportunity to participate fully in subsequent reimbursement negotiations. Accordingly, ITA agrees with a proposal to adopt a cost-sharing plan in order to assist new licensees with government relocation costs. A cost-sharing plan would allow auction winners to reimburse incumbent government licensees for system relocation in negotiated proportions. Further, as stated by the Personal Communications Industry Association, NTIA should allow for the establishment of a clearinghouse to administer the cost-sharing plan, similar to the clearinghouse procedures adopted by the Commission for the relocation of 2 GHz microwave incumbents. Specifically, NTIA should solicit clearinghouse business proposals from interested entities, and should specify the criteria by which NTIA will select clearinghouse participants. ITA submits that the criteria used by the Commission in selecting microwave clearinghouses can serve as a useful example. The Commission’s criteria were as follows:

The relocation of federal incumbents by auction winners should not be mandatory if spectrum sharing is technically possible. Where feasible, a spectrum sharing arrangement can satisfy both potential and incumbent system operators while simultaneously maximizing the efficient use of spectrum. If NTIA determines that the relocation of federal incumbents is mandatory, however, ITA supports a cost-sharing plan to assist auction winners with the relocation of federal government systems. ITA submits that the cost-sharing plan would best be administered by clearinghouses, similar to the clearinghouses established by the Commission to relocate 2 GHz microwave incumbents. Implementation of these policies will ensure the timely auction and subsequent deployment of new services in frequencies reallocated to non-government users.

Respectfully submitted,

Industrial Telecommunications
Association, Inc.

By: /s/ Laura L. Smith, Esq. _______

Laura L. Smith, Esq.

President and CEO

Director, Government Affairs

Date: April 18, 2001

I, Jeremy W. Denton, do hereby certify that on the 18th day of April 2001, I forwarded to the parties listed below a copy of the foregoing Reply Comments of the Industrial Telecommunications Association, Inc. via U.S. mail:

Jeremy Denton

* via hand delivery