From: Julia Johnson [mailto:julia@aaedalliance.com]
Sent: Tuesday, September 21, 2004 4:46 PM
To: michele farquhar; john grif johnson, jr.; Sherille Ismail; terdema ussery; alfred liggins; alex wallau; Veronica Flores; steve hillard; stan little; susan jin davis; ari fitzgerald; Erin Boone; Kyle Dixon; David Honig; Riley Temple; jamie howard; kelvin westbrook; marva johnson; roscoe young; jerome fowlkes; sherman kizart; susan buck; divakar kamath; jerry johnson; Richard Lee; Francisco Montero; lauren tyler; jim winston; henry rivera; ginger lew; anthony gee; andrew barrett; ted childs; Punam mathur; george herrera; luke visconti; Dan mason; jenell trigg; yvette mouton; jamila bess-johnson; benita fitzgerald-mosley; matthew blank; vonya mccann; joan gerberding; decker anstrom; Nicole Ross; Jenny Alonzo
Cc: Jane Mago; Maureen McLaughlin
Subject: FCC Federal Advisory Committee on Diversity Conference Call Meeting

Diversity Committee Members,

We will have a conference call meeting that will serve as an official board meeting on October 4, 2004 at 3:00-4:00 p.m., EST. (see attached Federal Register Notice). The call in numbers and access codes will be provided when they become available. During this meeting, we will take up two recommendations from the New Technologies subcommittee. These two items will require the vote of the committee and are currently posted on our website for consideration and review.

The first order of business will be to discuss a recent resolution regarding the Designated Entity rules for the upcoming Auction 58. The second will be to take up the FM Radio White Paper that was previously posted on the website in June 2004.

Please visit the FCC website to see the resolution relating to the Designated Entity rules. I believe that this resolution is an excellent policy recommendation and support it. However, I believe its applicability should be broadened to apply to all of the Designated Entity (DE) rules, not just Auction 58. Specifically, a broader resolution should urge the commission to utilize existing DE rules in as many auctions as appropriate in order to increase opportunities for entrepreneurial companies.

I have attached language that I believe would accomplish the goal of moving the resolution away from one that advocates a particular party's point of view towards one that is more in keeping with the role of a broad advisory group. To be clear, this revision is intended to strengthen the effect of our recommendation in such a way that it includes Auction 58 specifically but yet is broad enough to cover all auctions. I offer the following language for your consideration.

Whereas:
The Commission’s Designated Entity (“DE”) rules, including the broadband PCS C-Block spectrum set-aside, 47 C.F.R. § 24.709, were developed to satisfy the Commission’s obligations under Section 309(j) of the Communications Act to provide small and minority and women-owned businesses (“Entrepreneurial Companies”) with meaningful access to the spectrum needed to provide wireless services;

The often times capital-intensive nature of communications businesses and the difficulties experienced by Entrepreneurial Companies in accessing capital make it virtually impossible for Entrepreneurial Companies to secure valuable spectrum licenses when bidding against well-capitalized incumbents;

Entrepreneurial Companies will be successful in raising the capital needed to acquire and build out valuable spectrum licenses only if the capital markets perceive that the FCC’s Designated Entity eligibility rules will remain stable and certain;

Therefore, be it
RESOLVED that the Advisory Committee on Diversity for Communications in the Digital Age strongly urges the Commission to maintain effective DE rules to increase opportunities for small and minority and women owned businesses. A current example where we believe maintaining DE rules could be effective would be found in the upcoming Auction 58 where application of current DE rules, including the C-Block eligibility rules established in 2000 could significantly enhance opportunity.

Our final order of business will be to receive updates on current activities from the sub-committee chairs. Should you require additional information, please feel free to contact me.

Julia