(July 23, 2002) - In a victory for the telecommunications industry, the Bush administration announced today that the Pentagon has agreed to adjust some military communications frequencies, resulting in increased spectrum to accommodate advanced mobile wireless (3G) systems. The result should improve the capability for telecommunications companies to offer streaming video and high-speed Internet access to handhelds and phones.

The Department of Defense had been reluctant to relinquish any of its military frequencies, which are used for such purposes as guiding weapons and satellites. In the new plan, the military will free up two sections of spectrum, and will move its uses to other frequencies over the next seven years. Wireless companies purchasing the rights to these frequencies will cover the cost of the transfer. The newly available range of frequencies, matching those used in other countries, will make it possible for a mobile phone user in the U.S. to roam internationally with it.

Since 1999, when the FCC released their Spectrum Policy statement, the search has been on for 3G spectrum in the U.S. The FCC's attempts to identify spectrum for 3G in previous years had been unsuccessful. Meanwhile, other countries moved ahead and allocated spectrum. (Europe has already allocated 155 MHz of spectrum for the 3G terrestrial component.) The urgency of increasing spectrum was intensified by the explosive increase in wireless voice and data usage: In 1993, 16 million subscribers used 20 billion total minutes; but by 2001, 130 million subscribers used 450 billion minutes. The Department of Defense's usage of spectrum has also intensified, due to defensive and offensive actions around the globe in recent years.

Secretary Evans and FCC Chairman Powell established a task force to succeed where previous efforts had failed. The Commerce Department's National Telecommunications and Information Administration (NTIA), in conjunction with the FCC, DOD, and other federal government agencies, conducted a study. It determined that 90 MHz of this spectrum could be allocated for 3G services to meet increasing demand for new services without disrupting communications systems critical to national security.

For more on the spectrum reallocation, see the National Telecommunication and Information Administration's "3G Viability Assessment," at www.ntia.doc.gov/ntiahome/threeg/va7222002/3Gva072202web.htm.