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New Toffler Associates Study Calls for National Spectrum Allocation Strategy

date: September 13, 2001

In a press conference today on Capitol Hill, Toffler Associates, the executive advisory firm formed by Alvin and Heidi Toffler to help companies and governments make a smooth transition to the fast emerging, knowledge-based economy, released a new report on the current impasse over allocation of radio frequency spectrum. Spectrum currently reserved for Federal agencies, including the Department of Defense (DoD), is being considered for reallocation to enable "3G" wireless communication services. The report goes beyond the current gridlock to address the root causes of today's dispute: a reactive and politicized spectrum allocation system rooted in the past.

The report states: "Controversy over this potential reallocation highlights a larger issue - the fact that we neither have a national spectrum allocation strategy, nor have we discovered the means to devise one." Toffler Associates announced the findings in a Capitol press conference today.

The Toffler Associates' report, "Creating the Future of Spectrum Allocation," recommends four concrete steps to address the issue of spectrum allocation. First, government and industry should begin working together to develop a long-term, spectrum allocation strategy and structures based on anticipating future mobile communication needs of both public and private sector users. Second, the Federal Government must accelerate investment in transformational communications technologies for the DoD and other agencies to render the dispute over the 1755-1850 MHz band moot, while encouraging innovative approaches to out-sourcing that give the DoD increased access to the best communications capabilities US commercial industries can provide. Third, the FCC should begin auctioning licenses in 2002 for the 1755-1850 MHz band and designate proceeds as the first deposit in a new multi-purpose, safeguarded escrow account or "trust fund " to help affected users handle spectrum reallocation impacts and facilitate spectrum-related research and development. Fourth, the DoD and other agencies should begin using the escrow account and other funds immediately to accelerate the needed transition to new communication systems and media.

In developing the report, Toffler Associates conducted scores of interviews with spectrum management experts and leaders in private industry, the Congress, the Department of Defense, the Federal Communications Commission, the National Telecommunications and Information Administration, and elsewhere. In July 2001, Toffler Associates sponsored a Spectrum Forum at which representatives of industry, the Department of Defense, regulatory agencies, and the media exchanged ideas and perspectives on the issue. Completion of the Toffler Associates' report took place once this set of feedback had been collected.

 



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