Fifth AnnualProgress Report U.S. DEPARTMENT OF COMMERCE JOHN E. BRYSONSECRETARY OF COMMERCE LAWRENCE E. STRICKLINGASSISTANT SECRETARY FORCOMMUNICATIONS AND INFORMATION March 2012 RELOCATION OF FEDERAL RADIO SYSTEMS FROMTHE 1710-1755 MHz SPECTRUM BAND:FIFTH ANNUAL PROGRESS REPORT The National Telecommunications and Information Administration (NTIA) submits thisreport pursuant to Section 207 of the Commercial Spectrum Enhancement Act (CSEA),Title II of P.L. 108-494, which requires annual reporting on federal agencies’ progress tovacate certain wireless communications systems from the 1710 megahertz (MHz) to 1755MHz radio spectrum that has been reallocated to commercial use. The NTIA publishedthe first annual report to Congress in March 2008. That report covered relocation activityduring the period from March 2007 through December 2007. Each subsequent annualreport documents the cumulative progress through December. This annual reportdocuments the cumulative progress since the commencement of relocation activity inMarch 2007 through December 2011. As created by the CSEA, the Spectrum Relocation Fund (SRF) provides a centralized andstreamlined funding mechanism through which federal agencies can recover the costsassociated with relocating their radio communications systems from spectrum reallocatedand authorized to be auctioned for commercial purposes. The CSEA authorized the useof auction proceeds for relocation costs. The CSEA designated 1710-1755 MHz as “eligible frequencies” for which federalrelocation costs could be paid from the SRF. The NTIA and Federal CommunicationsCommission (FCC) jointly reallocated for non-federal use the 1710-1755 MHz band andthe FCC designated the spectrum for Advanced Wireless Services (AWS). In September2006, the FCC concluded the first auction of licenses for AWS in the 1710-1755 MHzband paired with the 2110-2155 MHz band. In August 2008, the FCC held a secondauction of licenses that were not sold in the first auction. The AWS auctions raised over$13.7 billion in net winning bids. Auction proceeds attributable to federal frequencieswere deposited in the SRF in accordance with the CSEA. For the two auctions, a total of115 different bidders participated and the FCC issued a total of 1122 AWS licenses. In February 2007, the Office of Management and Budget (OMB), in consultation withNTIA, submitted a report to Congress detailing a transfer of $1.008 billion from the SRFto 12 federal agencies to relocate their wireless systems from the 1710-1755 MHz band.OMB transferred this amount to the agencies in March 2007. Between 2007 and 2011,OMB, consistent with the provisions of the CSEA, in consultation with NTIA and afterCongressional Notification, made several additional transfers from the SRF toaccommodate additional unanticipated relocation expenses. A summary of thesetransfers to date is listed in Table 1. In October 2008, OMB issued guidance to federal agencies participating in the SRFspecifying the information they must provide when requesting additional resources or anextension of their approved project timeframes.1OMB directed the agencies to adhere totheir original cost and timeline estimates to the extent possible. However, in unforeseencircumstances, where agencies need additional resources or time to vacate the auctionedspectrum, Section 204 of the CSEA authorizes OMB, in consultation with NTIA, toapprove changes to the timeframe and cost estimates associated with relocation of federalsystems. OMB and NTIA review extension requests to ensure the timely relocation offederal systems from the 1710-1755 MHz band, and to minimize any potential impact tocommercial licensees. As required by Section 207 of the CSEA, this report describes the progress federalagencies have made in relocating out of the 1710-1755 MHz band. It details, on asystem-by-system basis, the estimated relocation costs, the actual costs incurred, and theamounts paid from the SRF. The report is based on data submitted by the federalagencies to NTIA. The vast majority of the 12 impacted federal agencies report that they are meeting theiroriginal relocation timeframe and cost estimates. For example, over the past year, federalagencies have relocated 24 systems from the 1710-1755 MHz band, bringing the total to170 systems (approximately 95 percent of the total systems). In addition, 95 percent ofall federal agencies’ systems that had original relocation timeframes of 48 months or lesshave relocated.2 Four agencies (United States Department of Agriculture, Department of Housing andUrban Development, National Aeronautics and Space Administration, and the TennesseeValley Authority) reported they have completed the relocation effort and reachedcomparable capability. As required by the CSEA, NTIA has notified the FCC of theseresults. Of the remaining agencies, the Department of Defense, Department of HomelandSecurity, Department of Justice, Department of Transportation/Federal AviationAdministration, Departm