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November 9, 2000

Separate Statement of Commissioner Susan Ness

Re: Principles for Encouraging the Development of Secondary Markets for Spectrum

The United States has long been the vanguard for developing new approaches to spectrum policy and management. Today, we launch another vehicle to increase the efficiency with which spectrum - a scarce national resource - is deployed in this country. Previously, we have led the way globally to encourage the adoption of flexible wireless allocations and competitive bidding for license assignment. We have promoted the development of new technologies, such as software defined radio, that will facilitate more efficient, less costly, and less regulated access to spectrum. I am pleased that we are initiating a policy to foster secondary markets for spectrum - another effort to increase the opportunity for the public to have access to new services made possible by more efficient use of the spectrum.

The viability of a secondary market for spectrum will depend upon three crucial elements: (1) whether the Commission in future proceedings can establish the appropriate legal framework; (2) whether industry can produce equipment that takes advantage of this flexibility without causing undue interference; and (3) whether the market can develop a mechanism for identifying and distributing available spectrum.

I look forward to working with all parties to accomplish these goals.