“Mr. Chairman, thank you for holding this hearing today, in which we will examine what promises to be one of the next big steps in the digital revolution we’ve experienced in recent years.

            “We have all witnessed the explosive growth of both the Internet and mobile communications.  The deployment of third-generation mobile wireless services promises to bring the two together – so that consumers can have, in the palms of their hands, an exciting new array of digital products, including high-speed Internet access, video and other informational services, all broadcast over the airwaves.

            “Equally important, third-generation wireless promises to provide many high-tech and information-service companies with a new avenue for innovation and growth.

            “But the deployment of third-generation wireless services will not happen in the United States until we get our act together.

            “It’s not that the technology does not exist for 3G services.  (Although in its infancy, it is developing rapidly.)  The problem is the Federal government lacks a comprehensive, coherent spectrum policy that will bring about the swift deployment of 3G services.

            “At present, all of the spectrum bands identified by the World Radio Conference last year for global 3G deployment are heavily encumbered in the United States.  Some segments of these bands are slated to be auctioned by the FCC, but such an action would be extremely premature.

            “For example, we could auction off part of the 700 mhz band right now for 3G services.  But this band will not be available until at least 2006.  And, currently, no other country has allocated this for 3G services.  It makes no sense to commit resources this way at this time.

            “We could auction off part of the 1710-1755 mhz segment and couple it with the 2210-2150 mhz segment.  But doing so could foreclose use of the potentially valuable 1755-1850 mhz band for 3G services.

            “Simply put: we should not auction some portions of these bands until we have a comprehensive policy concerning what we are going to do with all of the bands.

            “I hope that our Administration witnesses today can shed some light on when we can expect to have a comprehensive strategy for 3G.

            “I was pleased that FCC Chairman Powell delayed the 700 mhz auction.  And I was also pleased with correspondence between Chairman Powell and Commerce Secretary Evans concerning their efforts to work together and to avoid a policy of auctioning spectrum in a piecemeal fashion.

“But that leaves us with the question of the Pentagon’s role in this matter.  To date, the Pentagon has not been very cooperative.  Instead of helping us figure out whether there are viable options for moving its operations from the 1755-1850 mhz band, the Pentagon has essentially just told us ‘NO.’

“I hope that changes today.  I hope that Dr. Wells will help us determine whether there are spectrum bands to which the Pentagon’s operations can be reallocated.  We certainly want the Pentagon to have comparable spectrum.  And we want it to be fully reimbursed for the cost of moving to other bands and to be able to purchase state-of-the-art communications gear.

“It may even make sense to enable the Pentagon to use the funds produced by an auction of its spectrum licenses for other modernization purposes as well.  (Based on our current budget situation, I am not sure where else comparable funds will be found.)

“The bottom line is that we need a new spectrum policy.  And we need one that reflects how we are going to prepare American consumers for the benefits of 21st Century advanced wireless technology.  We need a thorough review of all of our options and honest dialogue with incumbent licensees to determine where we should deploy 3G services and when we can do so.”