Genachowski, Locke Urge Revamping Spectrum, USF, ICC, Electric Grid System

ATLANTA -- The FCC is “moving forward strongly on implementation of the National Broadband Plan,” including fixing the spectrum, intercarrier compensation and Universal Service Fund systems, said FCC Chairman Julius Genachowski, speaking at a NARUC annual meeting for the first time. Two areas in which innovation is essential are broadband and the smart grid, said Commerce Secretary Gary Locke. NTIA has identified government spectrum for commercial broadband, he said. (See separate story in this issue.)

Genachowski he will propose at the FCC’s meeting this month lifting technical restrictions on broadcast spectrum, along with rule changes to allow channel sharing among broadcasters. He urged Congress to pass legislation to allow incentive auctions to produce revenue, additional spectrum for mobile use and better spectrum sharing. The concept behind incentive auctions is simple, Genachowski said: Using market power to ensure that underutilized spectrum flows to the uses that consumers value most in the 21st century. To encourage the supply of spectrum for the auction, he backed creating a mechanism to allow a license-holder and the taxpayer to share in auction proceeds.

The USF program has become “outdated, inefficient and poorly targeted,” Genachowski said. “It is on an unsustainable path.” It’s critical to transform USF to focus on broadband, get control of the program’s growth and eliminate waste and inefficiency, and demand accountability, he said. “Our policies must be market-driven and incentive-based,” Genachowski said. That means using smart policies to offer the most bang for the universal service buck, he said. Also important is a predictable transition for the program with reasonable time given providers and investors to adjust, he said.

Several states have taken steps to tackle intercarrier compensation by reducing intrastate access rates, rebalancing local residential rates, and creating their own universal service funds, Genachowski said. The FCC is learning from these states’ experiences while encouraging other states to follow their lead, he said. Historically, federal and state governments have collaborated to solve major infrastructure challenges, Genachowski said. Likewise, universal service has always been a federal-state partnership, he said.

Modernizing the electrical grid is one of the Obama administration’s top priorities, Locke said. Consumers have little knowledge about how much energy they consume and how to save energy, he said. It’s critical that consumers have different pricing options, he said. The federal government has led efforts to transition to the smart grid, but gaining the full benefits of the technology also depends on state and local officials, he said.