Remarks of Commissioner Susan Ness before Women in Aerospace Washington, D.C. February 13, 1996 It is a pleasure to be here with you this evening and to see so many of our WRC-95 alums. As you can imagine, the FCC is busier than ever these days. The Telecommunications Act entrusts us with significant new responsibilities to be completed under tight deadlines -- regulatory nanoseconds -- in fact, only 175 days remain for some of the most crucial rulemakings. The number of mergers and acquisitions that have been filed in just the past 30 days is mindboggling. But in our desire to implement the legislation, we must not neglect other critical initiatives -- items unrelated to the new law, but which enhance the international competitiveness of our telecommunications industries. Among these:  planning for the 1997 World Radio Conference (WRC);  streamlining and updating our satellite regulations; and  examining our spectrum management policy. I'd like to share my thoughts with you in these three areas. I. WRC'95 Last fall, I had the privilege of representing the Commission at the 1995 World Radiocommunication Conference in Geneva. The United States approached the Conference as one would a campaign: our goal was to obtain satellite spectrum allocation and use decisions that would enable new technologies to be deployed globally. We had an ambitious set of proposals and 130 delegations to convince. Keep in mind, the U.S. had but one vote -- well, two, once Micronesia gave us its proxy. It was a long and, at times, arduous Conference. Indeed, the old adage -- If it weren't for the last minute a lot of things wouldn't get done -- might well have been our theme song. The results of WRC-95 are a testament to the great spirit of cooperation among the ITU member nations. They recognized that the ITU must embrace new technologies. I was impressed with their willingness to tackle the difficult issues raised by these innovative satellite systems. Not all of these issues could be resolved fully at this Conference nor were the U.S. proposals adopted in their entirety. But some of the results are worth noting:  The designation of sufficient spectrum for Mobile Satellite System (MSS) feeder links. These allocations were critical to the operational future of our low-earth orbiting satellite systems, known as the Big LEOs. Additional allocations will be considered at WRC-97.  Additional spectrum for MSS below 1 GHz (Little LEOs). These are very crowded bands; only a sliver of global spectrum was found. The Conference requested sharing studies before it would support more spectrum. This, too, is on the WRC-97 agenda.  An adjustment to the current global mobile satellite allocation in the 2 GHz band. The Commission's 1994 PCS band plan -- one of my first decisions as a Commissioner -- carved out a piece of the WRC'92 allocation for MSS. That prompted our WRC-95 proposal to reserve adequate spectrum for future mobile satellite service competition. As one might imagine, the U.S. proposal encountered considerable resistance. I experienced firsthand the impact of the Commission's domestic policy decisions on international spectrum negotiations. But in the end, the U.S. obtained the spectrum adjustment on a primary basis for our region -- and a WRC-97 agenda item to allocate more spectrum in Regions I and III.  Finally, allocation for non-geostationary fixed satellites (NGSO FSS). For the uninitiated, this includes Teledesic, the futuristic low orbiting broadband satellite system proposed by Craig McCaw and Bill Gates. A fierce debate ensued at the opening session whether even to address this request at WRC-95. We won. Ultimately, the Conference gave a global green light to NGO- FSS by approving an immediate 400 MHz allocation, with another 100 MHz possible in 1997, after sharing studies are done. It is obvious from my brief summary that for U.S. satellite interests, WRC-97 will be as important as WRC-95. Among the lessons we learned at WRC-95: First Lesson: WRC preparation cannot be done on an interim basis. There must be continuity and ongoing involvement with the ITU and its member delegations. The Commission has already taken steps to develop U.S. proposals for 1997:  We have named our WRC 97 Preparatory team, headed by Cecily Holiday;  We have reconvened our Advisory Committee to work on proposals; and  We are working with NTIA to create a joint committee -- to avoid duplication of efforts and to develop U.S. proposals at an earlier stage. Lesson Two: We must reach out and touch someone -- preferably from another delegation. We invited women delegates from other countries to a Women's Breakfast. It was exciting to meet the woman heading the Egyptian delegation, and the chief engineers from Jordan, Thailand, China and Brazil. The friendships formed at that breakfast are the foundation for mutual understanding, not just for WRC-95, but for future conferences. Lesson Three: Our delegation included many industry members, whose expertise and international contacts were invaluable. Despite sometimes conflicting financial interests, our industry members faithfully advanced the official U.S. policy. Such government-industry cooperation will be critical at future conferences. Lesson Four: Maintain a good sense of humor. It can break the ice and allow compromise to follow. How true it was! I am very proud our U.S. delegation and its head, Brian Fontes. We are fortunate that many of these experienced individuals will be part of our WRC-97 team. I plan to continue my involvement as well. II. INTERNATIONAL RULEMAKINGS You can't have global satellite systems without international spectrum allocations. But U.S. companies also need to be able to enter foreign markets to offer these global services once they are "off the ground." The Commission has taken a leadership position in opening our markets to foreign competitors. Our recent Foreign Carrier Rulemaking provides concrete incentives for foreign countries to remove the barriers that keep U.S. companies out of their telecommunications markets. In addition to these efforts abroad, the Commission is conducting a top-to-bottom review of our satellite licensing policies and regulations. Last month the Commission adopted an order, known as "DISCO" that eliminates the distinction between U.S. domestic satellites and international separate systems. Under the new rules, U.S.-licensed providers of fixed, mobile, or direct broadcast satellite services will be allowed to offer these services both domestically and internationally. This greater flexibility should spur competition in satellite services and allow our satellite operators to meet customer demand in an increasingly globalized economy. We continue to look for ways to streamline our regulations to better respond to marketplace changes. Some of you may have participated last month in the International Bureau's Industry Roundtable on Satellite Licensing Policies. Topics debated included:  Our financial qualification standards;  Technical standards;  U.S. licensing policies for foreign-licensed MSS systems; and  Resolution alternatives for mutual exclusivity. It was a heated debate which generated a lot of useful ideas. III. SPECTRUM MANAGEMENT Let me close with an issue of particular importance to me: spectrum management. As our auctions have so clearly demonstrated, spectrum is one of our nation's most valuable resources. Wise spectrum policies stimulate growth in jobs and exports. Efficient use of the spectrum, coupled with rapid deployment of new technologies, can increase competition, reduce prices for consumers, and introduce innovative new services. Conversely, government micro-management and drawn-out proceedings for spectrum allocation and assignment, work against creativity and new services, preserving the domain for monopoly providers. Entrepreneurs and the public lose. Future spectrum needs and the impact of new technologies are issues confronting the Commission regularly in its role as spectrum steward. Some have argued that the Commission should not make any of these judgment calls, but should simply sell off the spectrum in fee simple to the highest bidder for whatever use the winner chooses. I don't share that view. However, I am convinced that the Commission needs to take the time to examine its spectrum policies. For that reason, the Commission will hold an en banc hearing on March 5 to address spectrum management, including such topics as:  Future spectrum demands and the goals to be used to prioritize among them.  The potential for technology to impact both supply and demand for spectrum, and the role of technical standards to increase efficiency and prevent interference.  The appropriate balance between government and marketplace control over the allocation, uses and licensing of spectrum. I know that the satellite industry has a great interest in spectrum issues and I look forward to hearing its views on these topics. A vigorous debate with the full range of viewpoints is an important step in formulating a spectrum management policy for the 21st Century. Thank you.