NTIA and the Federal Communications Commission (FCC) do the same work -- there is no need for this duplication.

Reality:

NTIA is the principal Federal voice for Executive Branch positions on crucial domestic and international telecommunications and information issues, including representing the Administration's positions before the FCC. In contrast to NTIA, the FCC is an independent agency. It does not represent or report to the Executive Branch.

The FCC regulates the private sector's use of the spectrum, largely by developing and enforcing rules mandated by legislation and licensing private companies' use of the radio spectrum. Regulations are on a case-by-case basis, in response to industry and private needs and according to the votes of the FCC's five commissioners. NTIA manages the Federal government's use of the spectrum.

Government spectrum needs -- many involving safety of life (air traffic control) and national security -- are best served through the Executive Branch. Because commercial needs may dominate, spectrum allocation decisions for these critical functions should be kept separate from the commercial allocation decisions made by the FCC.

NTIA initiates policies which encourage greater competition and development in the U.S. telecommunications industry. NTIA's past efforts and forward thinking have led directly to the FCC's implementation efforts today for spectrum auctions and telephone company provision of video dial tone service.

Executive Branch telecommunications policy is already formulated within the Office of Science and Technology Policy (OSTP) in the White House.

Reality:

OSTP focuses on a very limited number of telecommunications issues. Staffed with 36 employees, OSTP is divided into four divisions: science, technology, environment, and national security and international affairs. Within the technology division, OSTP works on the U.S. space and aeronautics program, defense technology, educational applications of technology, manufacturing technologies, and advanced computing and communications technologies.

OSTP is clearly not able to assume the full range of NTIA's broad duties and responsibilities. Moreover, NTIA is more accessible to the general public as well as the business and public interest communities. As a part of the Department of Commerce, NTIA's activities fit well within the Department's overall framework and mission.

There is too much duplication within the U.S. Government's telecommunications activities.

Reality:

NTIA responsibilities encompass a broad and diverse range of telecommunications issues, including domestic and international policy, spectrum management, research, and grant applications. Within the Federal Government, the State Department, the U.S. Trade Representative, and other entities may address telecommunications as a peripheral aspect of their primary missions. Frequently, these entities rely upon NTIA for specific telecommunications expertise. If NTIA were not available, many of these entities would expand their own staffs to compensate for the expertise no longer available from NTIA.

The private sector will perform essential telecommunications functions if NTIA is eliminated.

Reality:

NTIA's global telecommunications activities are conducted in bilateral and multilateral fora on primarily a government-to-government basis. These activities, vital to achieving market access for U.S. products and services, cannot be undertaken by the private sector because no one company or group of companies can represent fairly the diverse interests of the U.S. government or the American business community as a whole. NTIA has been successful through the International Telecommunication Union (ITU) and its conferences, such as the World Radiocommunications Conference (WRC), negotiating international telecommunications standards that are favorable to the broad range of U.S. businesses and consumers.

NTIA activities cover the entire range of telecommunications today: domestic and international telecommunications policy, spectrum management, telecommunications research, and applications projects funded by telecommunications grants. NTIA's in-depth expertise enables it to draw valuable linkages between seemingly separate and distinct issues that might otherwise have been treated in isolation.

Reality:

Every other country has its own Ministry of Telecommunications that develops and implements its national telecommunications policies. The authority of these Telecommunications Ministries includes the Executive Branch policy development functions of NTIA as well as the regulatory functions of the FCC. For example, spectrum is owned entirely by the government in most countries. Governments, through their Telecommunications Ministries, dictate spectrum use policies with priority given to government needs, building national industries (often through monopolistic government-owned corporations), and limiting the potential impact of foreign competitors.

There is a growing international consensus that policy development and regulatory functions should be separated. As a result, many countries are now creating, in addition to their Telecommunications Ministries, an independent regulatory body like the FCC. These countries have looked to the U.S. as a model for effective telecommunications deregulation. Without NTIA, the U.S. would be placed at a severe negotiating disadvantage vis a vis other governments.

There is no compelling reason for telecommunications activities to be under the Department of Commerce.

Reality:

NTIA's functions -- telecommunications policy, spectrum management, research, grants -- belong together and belong at the Department of Commerce. The most recent of NTIA's major accomplishments include:

• Spearheading the first G-7 Ministerial Conference where U.S. Global Information Infrastructure principles were adopted and eleven joint projects were launched;
  
• Releasing over 200 MHz of Federal spectrum to the private sector to allow emerging technologies to actually reach the marketplace;
  
• Developing legislation authorizing spectrum auctions;
  
• Designing state-of-the-art electronic auctioning methods which formed the basis for those implemented by the Federal Communications Commission (FCC) after Congress passed legislation in 1993 (to date, the FCC has received total bids that will result in payments of approximately $9 billion to the U.S. Treasury); and
  
• Leveraging $24.4 million in Federal matching grant funds to achieve a total investment in our nation's information infrastructure of nearly $70 million.

Further, continuing the telecommunications functions at Commerce recognizes the ties between business, government, and technology within an environment where:

• Telecommunications and Information are vital to the public welfare, national security, and competitiveness of the United States.
  
• Rapid technological advances being made in the telecommunications and information fields make it imperative that the United States maintain effective national and international policies and programs capable of taking advantage of continued advancements.
  
• Telecommunications and information policies and recommendations advancing the strategic interests and the international competitiveness of the United States are essential aspects of the Nation's involvement in international commerce.
  
• There is a critical need for competent and effective telecommunications and information research and analysis and national and international policy development, advice, and advocacy by the executive branch of the Federal Government.
  
• As one of the largest users of the Nation's telecommunications facilities and resources, the Federal Government must manage its radio spectrum use and other internal communications operations in the most efficient and effective manner possible

Government spectrum management is the same as private sector spectrum management -- all spectrum management activities can be driven by competitive principles and the result will be more efficient spectrum use.

Reality:

To efficiently allocate spectrum between the private and public sectors depends on each sector's ability to determine the value of that spectrum. The public sector may be handicapped in this process because of the difficulty in measuring the societal value of government services. NTIA's efforts help assure that government has the spectrum available to fulfill its national security and public safety responsibilities. These essential responsibilities include air traffic control, defense communications, and law enforcement.

Through its efficient management of the Federal government spectrum, NTIA recently made 235 Mhz of spectrum available to the private sector, which will spur innovation and development of new telecommunications services.

Government is building the information superhighway.

Reality:

The private sector is building the information superhighway. Leadership actions by the Secretary of Commerce and NTIA are stimulating private sector interest and investment in the Nation's information infrastructure. Through the Telecommunications and Information Infrastructure Assistance Program (TIIAP), NTIA is providing matching grant funds to ensure that local communities and non-profit institutions can offer all Americans the benefits of advanced telecommunications technologies. In 1994, the first year of the program, $24.4 million of Federal funds was matched with private sector funds of $43 million, resulting in nearly $70 million worth of investment in our nation's infrastructure. These funds enabled over 100 communities in 45 states to provide greater access to their citizens.

The information superhighway also holds tremendous potential for Federal government applications. These applications range from information dissemination and virtual conferences to gain public input, to common databases available to Federal/state/local government agencies. At the same time, there are information policy issues which must be resolved before the infrastructure can reach its potential. NTIA has taken the lead on many of these issues, including universal service, privacy, and security.

The Federal government controls most of the useable spectrum (some say as much as 80%) and therefore should give up some of its reserves to the private sector.

Reality:

The Government is allocated exclusive use of a very small portion of the spectrum. The remainder is controlled either by the FCC (representing private sector use) or mutually between the FCC and NTIA (Federal government). The Government has no spectrum reserves per se ... it only uses what it needs to provide critical services to the public, such as national defense, law enforcement, and air traffic control.

There is a national plan for spectrum use called an allocation table. This table specifies the radio services, service priority (e.g., primary or secondary), and whether the service is for non-government or government or both (shared). The table is divided into approximately 800 frequency bands from 0 to 300,000 MHz. Of the 300,000 MHz allocated, the Government has exclusive use of 1.4% (4271 MHz), non-Government users have exclusive use of 5.5% (16561 MHz), and the remainder, 93.1% (279168 MHz), is shared between the Government and non-government users.

The vast majority of spectrum use for both the private sector and the Federal government is below 30,000 MHz (or 30 GHz). From an allocation point of view in the 0 to 30,000 MHz range, the government exclusive allocation is 7% (2271 MHz), non-government users have 30% (8961 MHz), and the remainder (63%) (18768 MHz) is shared.

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