Clinton Orders Steps on High-Speed Wireless Tech
WASHINGTON (Reuters) - President Clinton on Friday ordered
government agencies to work with the Federal Communications
Commission and the private sector to hasten adoption of
high-speed wireless communications technology.
Armed with a new report =
saying U.S. high-tech giants such
as America Online risked falling behind foreign competitors in
countries such as Japan and Finland, Clinton asked his agency
heads to identify radio spectrum requirements for the so called
''third-generation'' wireless technology.
The technology is designed to=
provide voice and high-speed
mobile access to the Internet, equivalent to the speed of a
cable modem.
Today's wireless devices are designed to transmit voice an=
d
brief text messages and cannot handle digital multimedia and
other content requiring high-capacity transmissions.
``Over the last fi=
ve years, the information technology
sector has accounted for nearly one-third of U.S. economic
growth, and has generated jobs that pay 85 percent more than
the private sector average,'' Clinton said in a statement.
``The action=
I am taking today will help U.S. high-tech
entrepreneurs compete and win in the global marketplace,'' he
said.
Clinton's order was accompanied by a report by his Council
of Economic Advisers urging speedy allocation of spectrum for
the high-speed networks, saying delays could let U.S. firms
fall behind foreign competitors.
``First-mover advantages can be import=
ant in many
telecommunications markets, so profits from establishing an
early lead in these markets can be substantial,'' the report
said.
Other developed countries, such as Finland, Japan, Britain
and the Netherlands, have already designated new portions of
the radio spectrum specifically for third-generation devices.
The United States is not scheduled to auction off portions of
the spectrum until September 2002.
Three Spectrum Ba=
nds Already Being Used
According to the study, some of the d=
ifficulty stems from
the fact that three of the spectrum bands under consideration
in the U.S. are currently used by analog cellular service
providers, the Department of Defense, fixed wireless providers,
satellite broadcasters, school systems and private video
teleconferences.
Many of the other countries, by contrast, do not face =
such
problems.
Clinton, in his memorandum, directed the commerce secretary
to work with the FCC and other agencies to develop a plan to
select spectrum for the high-speed wireless systems by Oct. 20
and to issue an interim report by Nov. 15.
The FCC, which already has b=
een examining possible spectrum
for third generation technology, and the National
Telecommunications and Information Administration, is expected
to identify spectrum by July 2001 in order to auction licenses
to competing applicants by Sept. 30.
Earlier this year, the World Radio=
communication Conference
specified three spectrum areas for potential third-generation
use.
The report by the Council of Economic Advisors warned that
delays in the United States would cause global leaders in the
Internet industry, such as America Online Inc. (NYSE:AOL - news) and
Amazon.com Inc. (NasdaqNM:AMZN - news),=
to fall behind industry hubs already
forming in other countries, notably Finland.
Finland, which allocated i=
ts third-generation spectrum
licenses in March 1999, is the home of Nokia (NOK1V.HE)
(NYSE:NOK - news), the world's largest mo=
bile phone maker.
Citing data that the annual consumer benefit from tod=
ay's
wireless telephone services is estimated at $53 billion to $111
billion, the study said consumer benefits from high-speed
services will likely be of a similar scale.
Companies also should reap =
substantial gains, the study
said. Recently completed spectrum auctions in Europe raised
$150 to $600 per capita, a good indicator of the amount of
benefit providers expect to gain from high-speed operations.
The study =
cautioned, however, that such benefits should be
weighed against the possible costs of moving incumbent users.