article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Private Wireless Spectrum Use Act''. SEC. 2. FINDINGS. The Congress makes the following findings: (1) Competent management of the electromagnetic radio spectrum includes continued availability of spectrum for private wireless entities because of such entitiesD23/' unique ability to achieve substantial efficiencies in their use of this important and finite public resource. A private wireless system licensee or entity is able to customize communications systems to meet the individual needs of that licensee or end user while using engineering solutions and other cooperative arrangements to share spectrum with other private system licensees and entities without causing harmful interference or other degradation of quality or reliability to such other licensees or entities. Accordingly, spectrum allocations for the shared use of private wireless systems achieve a high level of spectrum use efficiency and contribute to the economic and social welfare of the United States. (2) Wireless communication systems dedicated to the internal communication needs of America's industrial, land transportation, energy (including utilities and pipelines), and other business enterprises are critical to the competitiveness of American industry and business in international commerce; increase corporate productivity; enhance the safety and welfare of employees; and improve the delivery of products and services to consumers in the United States and abroad. (3) During the past decade, the Federal Communications Commission allocation and licensing policies have led to dramatic increases in spectrum available for commercial mobile radio services while the spectrum available for private mobile radio systems has decreased, even though the Commission recognizes the spectrum use efficiencies and other public benefits of such private systems and the substantial increases in the use of such systems. (4) Spectrum auctions are designed to select among competing applications for spectrum licenses when engineering solutions, negotiation, threshold qualifications, service regulations, and other cooperative means employed by the Commission are not able to prevent mutual exclusivity among such applications. Private wireless systems, on the other hand, avoid mutual exclusivity through cooperative, multiple uses generally achieved by the Commission, the users, or the frequency advisory committees. Accordingly, the requirements of such private wireless systems are accommodated within the spectrum bands allocated for private uses. Since there is no mutual exclusivity among private wireless system applications, there is no need for the Commission to employ a mechanism, such as auctions, to select among applications. Auction valuation principles also do not apply to the private wireless licensing process because the private wireless spectrum is not used on a commercial, interconnected basis. Rather, such private allocations are used for internal communications applications to enhance safety, efficiency and productivity. Nonetheless, there should be some payment associated with the assignment of new private wireless spectrum, and the Commission can and should develop a payment mechanism for this purpose. SEC. 3. DEFINITIONS. Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is amended-- (1) by redesignating paragraphs (33) through (52) as paragraph (35) through (54); and (2) by inserting after paragraph (32) the following: ``(33) Private Wireless System.--The term `private wireless system' means an infrastructure of telecommunications equipment and customer premises equipment that is owned by, and operated solely to meet the internal wireless communication needs of, an industrial, business, transportation, education, or energy (including utilities and pipelines) entity, or other licensee. ``(34) Private Wireless Provider.--The term `private wireless provider' means an entity that owns, operates, or manages an infrastructure of telecommunications equipment and customer premises equipment that is-- ``(A) used solely for the purpose of meeting the internal communications needs of another entity that is an industrial, business, transportation, education, or energy (including utilities and pipelines) entity, or similar end-user; ``(B) neither a commercial mobile service (as defined in section 332(d)(1)) nor used to provide public safety services (as defined in section 337(f)(1)); and ``(C) not interconnected with the public switched network.''. SEC. 4. ALLOCATION AND ASSIGNMENT OF ADDITIONAL SPECTRUM. Part I of title III of the Communications Act of 1934 (47 U.S.C. 301) is amended by inserting after section 337 the following: ``SEC. 338. ALLOCATION AND ASSIGNMENT OF SPECTRUM FOR PRIVATE WIRELESS USES. ``(a) Rulemaking Required.--Within 120 days after the date of enactment of the Private Wireless Spectrum Use Act, the Commission shall initiate a rulemaking designed to identify and allocate at least 12 megahertz of electromagnetic spectrum located between 150 and 2,000 megahertz for use by private wireless licensees on a shared-use basis. The new spectrum proposed to be reallocated shall be available and appropriate for use by private wireless communications systems and shall accommodate the need for paired allocations and for proximity to existing private wireless spectrum allocations. In accommodating the various private wireless system needs in this rulemaking, the Commission shall reserve at least 50 percent of the reallocated spectrum for the use of private wireless systems. The remaining reallocated spectrum shall be available for use by private wireless providers solely for the purpose described in section 3(34)(A). ``(b) Order Required.--Within 180 days after the Commission initiates the rulemaking required by subsection (a), the Commission, in consultation with its frequency advisory committees, shall-- ``(1) issue an order reallocating spectrum in accordance with subsection (a); and ``(2) issue licenses for the reallocated spectrum in a timely manner.''. SEC. 5. REIMBURSEMENT FOR ADDITIONAL SPECTRUM ALLOCATED FOR PRIVATE WIRELESS SYSTEM USE. Section 309(j) of the Communications Act of 1934 (47 U.S.C. 309 (j)) is amended by inserting after paragraph (14) the following: ``(15) Spectrum efficiency for shared spectrum.-- ``(A) Within 120 days after the date of enactment of the Private Wireless Spectrum Use Act, the Commission shall initiate a rulemaking to devise a schedule of payment to the Treasury by private wireless systems, and by private wireless providers for the purpose described in section 3(34)(A), in return for a license or other ability to use a portion of the spectrum reallocated under section 338. The schedule shall be designed to promote the efficient use of those frequencies. ``(B) Within 180 days after the Commission initiates the rulemaking required by subparagraph (A), the Commission, after consultation with its frequency advisory committees and after opportunity for comment, shall adopt a schedule of payment in accordance with subparagraph (A) and which it determines to be in the public interest. ``(C) In adopting the schedule of payments referred to in subparagraph (A), the Commission-- ``(i) may not base a finding of public interest, convenience, and necessity on the expectation of Federal revenues for the use of such schedule of payment; and ``(ii) shall take into account the private nature of the systems, the safety and efficiencies realized by the public as a result of these private uses, the amount of bandwidth and coverage area and geographic location of the license, and the degree of frequency- sharing.''. SEC. 6. SPECTRUM SHARING Section 309(j)(6) of the Communications Act of 1934 (47 U.S.C. 309(j)(6)) is amended-- (1) by striking ``or'' at the end of subparagraph (G); (2) by striking ``Act.'' in subparagraph (H) and inserting ``Act; or''; and (3) by adding at the end the following: ``(I) be construed to permit the Commission to take any action to create mutual exclusivity where it does not already exist.''. SEC. 7. CONFORMING AND TECHNICAL AMENDMENTS. (a) Private Mobile Service.--Section 332(d) of the Communications Act of 1934 (47 U.S.C. 332(d)) is amended-- (1) by inserting ``and'' after the semicolon in paragraph (1); (2) by striking ``(c)(1)(B); and'' in paragraph (2) and inserting ``(c)(1)(B).''; and (3) by striking paragraph (3). (b) Application of Spectrum-use Payment Schedule to New Licenses.-- Section 337(a)(2) of the Communications Act of 1934 (47 U.S.C. 337(a)(2)) is amended by inserting ``or spectrum use payment schedule'' after ``competitive bidding''. (c) Exemption From Competitive Bidding.--Section 309(j)(2) of the Communications Act of 1934 (47 U.S.C. 309(j)(2)) is amended-- (1) by striking ``or'' at the end of subparagraph (B); (2) by striking ``Act.'' in subparagraph (C) and inserting ``Act; or''; and (3) by adding at the end thereof the following: ``(D) for private wireless systems, and for private wireless providers for the purpose described in section 3(34)(A), that-- ``(i) are used to enhance the productivity or safety of business or industry; and ``(ii) are not made commercially available to the public, except for that purpose.''. (d) Technical Amendment.--Section 271(c)(1)(A) of the Communications Act of 1934 (47 U.S.C. 271(c)(1)(A)) is amended by striking ``3(47)(A),'' and inserting ``3(49)(A),''.
summary: Requires the FCC to: (1) devise a schedule for payments to the Treasury for shared-use spectrum used by private wireless systems; and (2) adopt a payment schedule determined to be in the public interest. Prohibits competitive bidding requirements from being construed to permit the FCC to take any action to create mutual exclusivity where it does not already exist.