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Spectrum Auctions and Deficit Reduction: FY2006 Budget Reconciliation (CRS Report for Congress)

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Release Date Revised Feb. 16, 2006
Report Number RS22306
Report Type Report
Authors Linda K. Moore and Lennard G. Kruger, Resources, Science, and Industry Diviison
Source Agency Congressional Research Service
Older Revisions
  • Premium   Revised Oct. 31, 2005 (7 pages, $24.95) add
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Summary:

Congressional policymakers are seeking a way to accelerate the nation's transitionto digital television and to expedite the transfer of certain radio frequency channels fromthe broadcast industry to public safety and commercial users no later than 2009. TheCongressional Budget Office has informally estimated a value of $10 billion fromauction proceeds for these commercial channels; many believe the amount could behigher. Broadcasters are holding this valuable spectrum (channels 52-69) but would berequired to relinquish it after the transition to digital television (DTV) is achieved.Without a hard deadline, the transition to digital television has been delayed and thespectrum has not been made available for other uses. Congress anticipates applyingsome of the proceeds received from auctions of the spectrum to be cleared to help meetdeficit-reduction goals passed in H.Con.Res. 95. Consequently, some legislationdeemed necessary to assure a timely transition to digital television has been included inthe FY2006 budget reconciliation process. The Senate has approved some measures,provided in budget reconciliation bill S. 1932, as passed on November 3, 2005. TheHouse has approved steps to facilitate the DTV transition as part of the DeficitReduction Act of 2005 (H.R. 4241, Representative Nussle). Differences - as regardsDTV - between the two bills, to be resolved in conference, include agreeing on a harddate for the transition; use of spectrum auction funds to facilitate the transition;allocation of spectrum for unlicensed use; and multicasting must carry requirements -wanted by the broadcasters, resisted by cable companies.Discussed in this report are key points about the DTV transition and its inclusionin the budget reconciliation process.