Clinton orders agencies to study wireless technologies

President Clinton Friday directed federal agency executives to work closely with the private sector to identify spectrum bands that could be used for cutting-edge wireless Internet technologies as the administration's Council of Economic Advisers released a white paper on the impact these tools and services could have on the U.S. economy.

"The United States and the rest of the world are on the verge of a new generation of personal mobile communications, as wireless phones become portable high-speed Internet connections," Clinton wrote in a memorandum released with the study. "The United States government must move quickly and purposefully so that consumers, industry and government agencies all reap the benefits."

The intersection of third-generation (3G) wireless and the Internet revolution could help lower the cost of Internet access, making it possible for low-income, minority and rural residents to benefit from new technologies, said Commerce Assistant Secretary Gregory Rohde, in a conference call Friday.

Some 3G technologies are expected to include in one device cell phone, computer, pager, radio and credit card services-essentially bringing broadband to hand-held devices, creating what is called a mobile commerce, or m-commerce, market.

Clinton directed the agencies to work in cooperation with the Federal Communications Commission to identify necessary spectrum needed to accommodate the expected increase in 3G demand by July 2001. Incumbent spectrum users would be moved to another space and will be compensated.

Clinton directed the Commerce Department to work with the FCC and other agencies to craft a game plan on how to go about selecting the spectrum by Oct. 20 and to submit an interim report by Nov. 15 on the current uses of those spectrums. It will be the Commerce's job to encourage industry's participation. The Defense, Treasury, State and Transportation departments also will be involved in the process.

"We recognize that future generations of wireless services, which will offer increased data, voice and broadband capabilities, will require us to make sufficient spectrum available to accommodate these new innovative services," FCC Chairman William Kennard said.

The FCC will release a Notice of Proposed Rule-Making to identify bands for 3G use by the end of the year, Kennard said, and hopes to have the spectrum allocated by July 31. The deadline for the establishment of service and auction rules is set for Sept. 30, 2002.

"Just like what developed Silicon Valley around the computer chips and the computer, we think this (3G) will create a whole range of industries that will spring up from this technology," said Council of Economic Advisers Chairman Martin Baily.