FIRSTANNUALPROGRESSREPORT U.S. DEPARTMENT OF COMMERCE CARLOS M. GUTIERREZSECRETARY OF COMMERCE MEREDITH ATTWELL BAKERACTING ASSISTANT SECRETARY FORCOMMUNICATIONS AND INFORMATION March 2008 RELOCATION OF THE 1710-1755 MHz SPECTRUMBAND:FIRST ANNUAL PROGRESS REPORT This report is submitted pursuant to Section 207 of the Commercial SpectrumEnhancement Act (CSEA, Title II of P.L. 108-494), which requires annual reporting onFederal agencies’ progress in vacating their affected wireless communications systems,which are being relocated from certain radio spectrum that has been reallocated tocommercial use. This is the first such annual report, and it details progress from thecommencement of relocation activity in March 2007 through December 2007. On December 23, 2004, President Bush signed the CSEA into law, therebycreating the Spectrum Relocation Fund (SRF) to provide a centralized and streamlinedfunding mechanism through which Federal agencies can recover the costs associated withrelocating their radio communications systems from certain spectrum bands, which wereauthorized to be auctioned for commercial purposes. The CSEA appropriated such sumsas are required for relocation costs, which are financed by auction proceeds. In September 2006, the Federal Communications Commission (FCC) concludedan auction of licenses for Advanced Wireless Services (AWS), on radio spectrum in the1710 megahertz (MHz) to 1755 MHz band, paired with the 2110 MHz to 2155 MHzband. The 1710-1755 MHz band of spectrum used by Federal agencies was reallocatedto AWS under the provisions of the CSEA, including the use of the SRF to facilitaterelocation of Federal communications systems, while the 2110-2155 MHz band wasreallocated to AWS by the FCC and does not require relocation of Federal systems. TheAWS auction raised $13.7 billion in net winning bids, and will facilitate the provision ofinnovative new wireless services in the commercial market. In March 2007, the Office of Management and Budget (OMB), in consultationwith the National Telecommunications and Information Administration (NTIA),transferred $1,008,552,502 from the SRF to 12 Federal agencies, in order to relocatetheir wireless systems from the 1710-1755 MHz band. In January 2008, OMB madeanother $35.57 million available to the Department of Homeland Security, consistentwith the provisions of the CSEA. As required by Section 207 of the CSEA, this report describes the progress thefederal agencies have made in adhering to relocation timelines. It also details, on asystem-by-system basis, the costs estimated, costs incurred, and costs paid from the SRF.The report is based on data submitted by the Federal agencies to the NTIA. In general, the Federal agencies report that their actual relocation times and actualcosts are less than their estimates for most of the systems in the 1710-1755 MHz band.Two Federal entities have indicated that they will need additional time to relocate. Theyattribute the need for additional time to the short construction season in the remotelocations in which these systems are operated; correspondingly, commercial systembuild-out is not anticipated to be affected due to the remote nature of these Federalsystems. Federal agencies have now spent a total of $25,215,099 from the SRF. Section 204 of the CSEA provides authority to OMB, in consultation with NTIA,to approve the timelines and cost estimates associated with Federal relocation activity.To the extent that agencies have indicated a possible delay beyond their previouslyapproved project timeframes, OMB and NTIA review those requests to ensure the timelyrelocation of Federal systems from the 1710-1755 MHz band. Attachment A to the report provides an overall summary, by department and/oragency for the first year of relocation activity. The summary provides estimatedrelocation timelines and progress made in adhering to these timelines, estimated andactual relocation costs, and amounts paid from the SRF.Attachment B details thisinformation on a system-by-system basis for each department, agency and/or bureau. Attachment A $36,229$0$194,482$606,701$221,421$118,607$137,704 Summary of Relocation ActivitiesBureau Forest ServiceAir ForceArmyNavyDOD Wide SupportSubtotalNational Nuclear Security AdministrationBonneville Power AdministrationSouthwestern Power AdministrationWestern Area Power AdministrationDOE Wide SupportSubtotal $105,800$0$0$460,667$68,132$226,626 $13,618$0$13,618$0$265,000 Attachment B1710 MHz – 1755 MHz BandDepartment/Agency/BureauRelocation Summary United States Department of Agriculture (USDA)Apache-Sitgreaves MWAshley MWBoise MWChallis MWCibola MWCoconino MWCoronado MWDixie MWFishlake MWGila MWIPNF MWKaibab MWLagrande MWLassen MWLos Padres MWManti-Lasal MWOchoco MWPayette MWPlumas MWSalmon MWSierra MWStanislaus MWToiyabe MWTonto MWUinta MWWasatch MWWinema MWOverhead/Management Costs Forest ServiceSystemNumberUSDA 001USDA 002USDA 003USDA 004USDA 005USDA 006USDA 007USDA 008USDA 0