Wireless Initiatives Gain Congressional Approval in Session's Final Act.

WASHINGTON -- CTIA-The Wireless Association(TM) today applauded Senate approval of several measures that will aid in the efficient and cost effective delivery of advanced wireless services to consumers. The legislative package, which was passed by the House of Representatives last month, now goes to the President for consideration.

If signed into law, the initiatives would accelerate the relocation of certain federal government spectrum users, temporarily exempt the Universal Service Fund (USF) from the Anti-deficiency Act (ADA) and create a grant program for the deployment of a wireless enhanced 911 (E-911) system.

"I believe yesterday's action will further enable the wireless industry to deliver meaningful, sought-after services to consumers at affordable prices," said CTIA-The Wireless Association(TM) President and CEO Steve Largent.

The wireless legislative package that passed last night would start the process leading to an auction of 90MHz spectrum that is currently occupied by the Department of Defense and other government users. Wireless carriers plan to bid on the vacated spectrum for the purpose of providing advanced wireless services to consumers. The proceeds of the auction will be used to finance the relocation of the public sector spectrum users.

"Spectrum relocation is a vital issue that benefits taxpayers, the federal government and the wireless consumer," said Largent. "Through passage of this bill, Congress has assured government wireless communications users - particularly the Department of Defense - that the costs associated with their spectrum relocation will be funded by auction proceeds."

"CMRS providers recognize the importance of addressing the government's communications needs and also welcome the opportunity to utilize the vacated spectrum as they continue their deployment of advanced wireless services to American consumers," continued Largent. "The roll-out of next generation wireless services will enable American consumers to enjoy faster and more versatile functions on their wireless devices."

Paired with the spectrum relocation initiative is a measure that would temporarily exempt the USF from the ADA. Last month, a decision was made at the Federal Communications Commission (FCC) to apply the ADA to the USF. This decision, which significantly altered the USF's accounting methodology, could have forced wireless consumers to pay nearly 40% more in monthly USF charges.

"By taking this action, Congress has protected the wireless consumer from an arbitrary and wholly unnecessary rate increase. Wireless consumers are already saddled with the costs of numerous government mandates," said Largent. "It doesn't make any sense to require consumers to carry that kind of burden because of an unnecessary requirement that does nothing to improve program integrity. I applaud Congress for recognizing this costly inequity and working to quickly remedy the problem."

Lastly, the legislative package would establish a federal grant program for the construction and deployment of a wireless E-911 system. When fully developed, the wireless E-911 system will enable law enforcement personnel and emergency responders to pinpoint the location of callers using wireless handsets. Grants from the $250 million fund would be available to states that have not diverted money from their dedicated E-911 accounts.

"The wireless industry welcomes legislation that will assist in the efficient and cost-effective deployment of an E-911 system," said Largent. "Wireless consumers have paid more than one billion dollars into what they thought were dedicated E-911 funds. Unfortunately, there have been occasions where states have opted to allocate some of that money for other purposes. It's not right to spend one cent of E-911 money on anything other than what it's intended and this legislation ensures that will be the case."

CTIA is the international association for the wireless telecommunications industry, representing carriers, manufacturers and wireless Internet providers.

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