DOD spectrum may be out of reach

Last week's terrorist act on American soil leaves the wireless industry in the difficult position of trying to wrangle spectrum from the Department of Defense for third-generation wireless systems as the American mood shifts to its most hawkish.

Cover image: AP Photo/ Stuart Ramson Special Report Main Page

Last week's destruction at the World Trade Center and the Pentagon could bolster the Defense Department's argument that it can't move from its frequencies without compromising national security.

The Defense Department and the wireless industry have been locked in a battle for months over precious spectrum the agency occupies in the 1710 to 1885 MHz band. This frequency has become more vital to the industry because FCC Chairman Michael Powell is moving to take the 2500 to 2690 MHz band out of consideration amid strong opposition from religious and educational groups and fixed-wireless operators that occupy those bands.

U.S. wireless carriers say that their ability to deploy next-generation services and remain competitive with international counterparts depends on obtaining adequate spectrum in the next few years. The Defense Department has said it can't move many of its operations from those frequencies until at least 2010.

Carriers have managed to make national spectrum management one of the hottest topics on Capitol Hill, convincing major congressional Democrats of the urgency. But last week's attacks at World Trade Center and the Pentagon could unravel their efforts.

"It has turned our attention to military readiness and utilization of America's resources for the people's safety in a way reminiscent of the Cold War era," said Larry Swasey, senior vice president of communications for Allied Business Intelligence. "While there may not be a direct link to the actual spectrum used for security, there certainly is an emotional attachment to any movement to weaken any possible military readiness, preparedness and communication ability."

Still, wireless technology served as a dramatic and invaluable tool for those caught in the events last Tuesday. Passengers on hijacked airplanes called their loved ones while others provided information on the hijackers' identities.

"I don't think this changes anything in terms of spectrum allocation," said Tole Hart, senior analyst for Gartner Dataquest. "The Defense Department still needs to prove it needs the spectrum for security reasons."

These terrorist acts give the Defense Department more motivation to obtain the funding it desperately needs, Hart said. Secretary of Defense Donald Rumsfeld told Congress that the department will require a minimum of $347 billion in fiscal year 2003--at least an $18 billion increase over the already large increase the agency sought in fiscal year 2002. Rumsfeld has faced Congressional opposition since the budget surplus disappeared. Now Congress may move more aggressively to find ways to fund the Defense Department. And the wireless industry has the deep pockets to help.

Last week, however, the House of Representatives Rules Committee rejected an amendment from Rep. Mark Steven Kirk, R-Ill., that would have reserved proceeds from future 3G auctions to help the Defense Department relocate to other spectrum and modernize its communications capabilities.