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

Motorola, Inc. ("Motorola") hereby respectfully submits its reply comments in response to comments filed in the National Telecommunications and Information Administration’s ("NTIA") Notice of Proposed Rule Making in the above-referenced matter. As discussed herein, Motorola reiterates the importance of NTIA efforts to ensure that relocation costs and procedures are clearly defined prior to any competitive bidding activities. Commenters in this NPRM are unanimous in their support for the use of auction revenues to directly compensate displaced Government spectrum users. A simple, streamlined relocation process that broadly encompasses all potential relocation scenarios will enable mission critical Government facilities to be properly accommodated while providing certainty to potential commercial entities in evaluating costs prior to auction.

1. Commenters Support the Definition of Relocation Costs for Government Incumbents Prior to Competitive Bidding.


Motorola notes that there was nearly unanimous support for the complete definition of relocation costs prior to auction of spectrum subject to mandatory reimbursement. For example, AT&T Wireless states that "… adequate information regarding a variety of issues (such as the nature, location, and use of the affected facilities or frequencies) must be disclosed prior to auction so that industry may fully evaluate the feasibility and cost of those plans." Cingular asserts that "… NTIA should revise its proposed rules so that bidders are provided sufficient information on reimbursement costs and other matters prior to auction." PCIA urges "…NTIA to develop procedures that provide for final technical and cost information to be made available to auction participants well in advance of the auction." Motorola agrees with the commenters and strongly supports the specification of relocation costs before any auction of reallocated Government spectrum subject to mandatory reimbursement. Clearly identifying costs prior to the auction, rather than allowing those costs to be determined through post-auction negotiations, will greatly reduce uncertainty regarding the true acquisition cost of the spectrum and will benefit new licensees, the incumbents, and provide for the rapid deployment of services
.

2. Federal Government Reimbursement Should Come Directly From Auction Revenues.


In its initial comments in this proceeding, Motorola noted that NTIA and the FCC should seek to directly compensate affected Federal entities from auction revenues. Other commenters concur with this approach, and agree that it would provide the most beneficial, expeditious method for fairly compensating displaced Federal facilities. Implementation of a system of compensation that fully reimburses Government users from auction monies would greatly simplify and accelerate the overall relocation process. The other complicated and time-consuming proposals made by NTIA for this process will add unnecessary uncertainty and delay to the reallocation process. Motorola urges NTIA and the Commission to work with Congress and the wireless industry during the next few months to create a suitable framework for Government relocation reimbursement.
 

3. Sharing Between Federal and non-Federal Users, Relocation to Alternative Media, and Relocation of Exempted Federal Facilities Should All Be Strongly Encouraged


Motorola noted in its comments that any methodology that removes encumbrances from Federal spectrum should be supported. Motorola reiterates its belief, supported by the commenters, that when Government and non-Government users can share spectrum in a way that does not hamper deployment of services, such sharing should be facilitated. In such cases, no relocation should be necessary, and thus, no reimbursement should occur. However, clear rules need to be established to ensure that systems to be deployed are compatible and will not affect either non-Government operations or mission critical Government facilities. If any system modification is necessary to enhance sharing, such costs must be provided prior to the auction of the reallocated spectrum so that the new entrant will be in a position to consider these costs as part of its spectrum acquisition strategy. In the case of auctioned spectrum, the cost to modify incumbent systems would be reimbursed using auction revenue similar to cost reimbursement of relocation costs.

Additionally, Motorola believes that Federal agencies are in the best position to determine which type of systems best meet their needs. Some types of Government mobile or fixed service communications may be appropriately delivered over commercial systems. Other, more mission critical operations may require the use of Government systems specifically designed to meet the communications needs of an agency or group of agencies. Similarly, operational requirements, cost and reliability must be weighed in considering wireline or fiber as an alternative for fixed microwave. The electromagnetic spectrum is a scarce public resource and any method that permits more effective use, consistent with operational needs, should be fully supported. As such, any Government facility that could be accommodated by alternative media should provide the cost of this relocation to the NTIA. When the spectrum has been reallocated to services whose licenses will be distributed by auction, these cost figures should be established prior to the auction, with these costs reimbursed the same way that costs would be reimbursed for other types of relocations.

Finally, Motorola believes that permitting the continued operation of Federal power agencies ("FPA") and other exempted Federal operations within certain spectrum bands threatens the viability of their use by non-Government entities. For example, in the 1710 to 1755 MHz band, if FPA and exempted Federal operations maintain their legacy operations, the overall usefulness of the spectrum for third generation wireless services is severely threatened.

Therefore, Motorola again states its strong support for relocating these users. Motorola urges NTIA to require all affected Federal users, whether they are exempt from relocation or not, to submit all potential costs needed to support relocation at the same time that others who are subject to mandatory relocation do so. Assuming that a reimbursement program is developed through legislative relief to compensate displaced Government users directly with auction revenues as discussed previously, FPA and other exempted operations would also receive this direct compensation. Without a clear mechanism for relocating these entities, the non-Government use of reallocated Government spectrum is extremely endangered. As with relocation of non-exempt Federal users, the relocation process will ensure that the communications requirements of Federal users will be fully met and that users are fully compensated, thus such a process would not damage mission critical system operations by the Government.
 

4. Conclusion

April 18, 2001