Strategic Objective 2.3

Advance the development of global e-commerce and enhanced telecommunications and information services

STRATEGIC OBJECTIVE 2.3 TOTAL RESOURCES
(Dollars in Millions)

	FY 2000	FY 2001	FY 2002	FY 2003	FY 2004	FY 2005	FY 2006	FY 20071
Fiscal Dollars	$70.4	$117.5	$96.2	$97.6	$84.4	$69.9	$70.9	$1,146.1
FTE – Full-Time Equivalent	220	219	244	251	269	259	248	269
1. In FY 2007, $1,070.3 was provided to the newly formed Digital Television and Public Safety Program. (back)

STRATEGIC OBJECTIVE 2.3 PERFORMANCE RESULTS

Rating	Number of Reported Results
	FY 2000	FY 2001	FY 2002	FY 2003	FY 2004	FY 2005	FY 2006	FY 2007
Exceeded Target	0	0	0	1	2	1	2	3
Met Target	2	1	1	8	7	4	5	4
Slightly Below Target	0	0	0	0	0	0	0	0
Did Not Meet Target	1	1	1	2	0	0	0	0
See Appendix A: Performance and Resource Tables for individual reported results.

This objective focuses NTIA’s role in radio frequency (RF) spectrum management and telecommunications standards; and as an advisor to the President on communications policy matters, on Internet domain names, wireless telecommunications standards and technology, and high-speed Internet services.

Achievement of this objective will continue to further the technological advances for wireless communication, Internet services, domain name management issues, and other advances in technology. A discussion of each performance outcome supporting this objective will further describe the outcomes of this objective.

The Department through NTIA:

• Serves as the principal adviser to the President on domestic and international communications and information policy-making.
• Promotes access to telecommunications services for all Americans and competition in domestic and international markets.
• Manages all federal use of the electromagnetic spectrum and generally promotes efficient use of spectrum.
• Conducts telecommunications technology research, including standards-setting in partnership with business and other federal agencies.

The Agency’s expertise encompasses every aspect of telecommunications, including domestic policy, international policy, spectrum management, and technical telecommunications research and engineering.

NTIA’s responsibilities have expanded considerably with the enactment of the Deficit Reduction Act of 2005. Specifically, the act charged NTIA to administer a number of new one-time programs to be funded from anticipated spectrum auction proceeds associated with the transition to digital television broadcasts through the Digital Television Transition and Public Safety Fund. These programs include the (1) Public Safety Interoperable Communications (PSIC) Grant Program and the Digital-to-Analog Converter Box Coupon Program, and (2) the Low-Power Television (LPTV) and translator digital conversion and upgrade programs.

NTIA also leads Department activities in the areas of next-generation Internet Protocols, ultrawideband (UWB) technology, wireless broadband applications, wireless sensor technologies, and Internet technical functions.

SUMMARY OF STRATEGIC OBJECTIVE 2.3 PERFORMANCE OUTCOMES

PERFORMANCE OUTCOME	TARGETS MET OR EXCEEDED
Ensure that the allocation of radio spectrum provides the greatest benefit to all people (NTIA)	5 of 5
Promote the availability, and support new sources, of advanced telecommunications and information services (NTIA)	2 of 2

Performance Outcome: Ensure that the allocation of radio spectrum provides the greatest benefit to all people (NTIA)

Advancing broadband and third generation (3G) wireless services.

NTIA examined an array of spectrum management policy issues in FY 2007 dealing with innovative approaches to spectrum management and the effectiveness of current processes. The availability of the RF spectrum is key to the development and implementation of innovative telecommunications technologies.

NTIA coordinated with federal agencies the Spectrum Reform Initiative implementation plan with 54 milestones to be completed by FY 2010. This initiative will fundamentally change the business of spectrum management over the next five years. The purpose of the initiative is to promote the development and implementation of a U.S. spectrum policy that will foster economic growth; ensure U.S. national and homeland security; maintain U.S. global leadership in communications technology development and services; and satisfy other vital U.S. needs in areas, such as public safety, scientific research, federal transportation infrastructure, and law enforcement. One result is the first National Strategic Spectrum Plan. NTIA also established the Department of Commerce Spectrum Management Advisory Committee, which met three times in FY 2007. This committee is comprised of a broad range of stakeholders, including representatives from state, regional, and local sectors; industry; academia; and consumer groups.

The achievements of this performance outcome are described below:

• NTIA committed substantial resources in FY 2007 to the development of the first Federal Strategic Spectrum Plan, which is a major result of the Spectrum Reform Initiative. The plan will be released by the end of 2007.
• NTIA has improved the timeliness of processing frequency assignment requests from a target of 12 business days to less than nine days. This has been accomplished through business process re-engineering and IT improvements. These frequency assignments satisfy the near-term and future spectrum requirements of the 63 federal agencies to operate radio communications that provide the public with national and homeland security, law enforcement, transportation control, natural resource management, and other public safety services during peacetime and emergencies.
• NTIA published a report on a Washington, D.C. public safety wireless network to evaluate its effectiveness in sharing the radio spectrum with federal, state, and local governments during emergencies. Selection of the Washington, D.C. Wireless Accelerated Responder Network (WARN), an interoperable, city-wide, broadband public safety network fulfills one of the 24 recommendations of the President’s 21st Century Spectrum Policy Initiative for improving management of the Nation’s airwaves.

Performance Outcome: Promote the availability, and support new sources, of advanced telecommunications and information services (NTIA)

Performing research to improve both the performance of telecommunications networks and the availability of digital content on the Internet.

NTIA participated on behalf of the Administration in Federal Communications Commission (FCC) and Congressional proceedings on telecommunications policies, including the development of appropriate regulatory treatment for broadband services deployment. NTIA made significant progress in implementation of programs required under the Digital Television Transition and Public Safety Fund. A number of Internet related policy issues required NTIA action, including continuing Internet privatization, domain name management both domestically and internationally, next generation Internet Protocols, and the combination of Internet and telecommunications addressing (ENUM). All of these activities required substantial coordination among NTIA’s program offices, as well as interagency coordination to develop the Administration’s positions.

The achievements of this performance outcome are described below:

• In March 2007, NTIA published regulations that set forth the framework for the Digital Television Transition Coupon Program and provide guidance to consumers, converter box manufacturers, and retailers wishing to participate in the program. Specifically, the regulations outline requirements related to household eligibility, converter box technical specifications, and retailer certification. On August 17, 2007, NTIA awarded a contract to IBM for end-to-end services to implement and administer the coupon program. IBM, together with three partners, will manage three broad, functional aspects of the coupon program: (1) systems processing (e.g., determining consumer eligibility, distributing and activating coupons, certifying retailers, and providing training materials); (2) financial processing (e.g., administering the processes to authorize coupons for redemption and ensure payment to retailers, and performing independent auditing); and (3) consumer education and communications. IBM’s partners include Corporate Lodging Consultants which will oversee retailer certification and training as well as coupon redemption and payment; Epiq Systems which will handle coupon distribution and customer support; and Ketchum, a global public relations firm that will oversee the consumer education program.
• On July 18, 2007, U.S. Secretary of Commerce Carlos M. Gutierrez and U.S. Secretary of DHS Michael Chertoff announced the availability of $968 million in PSIC Grants to help state and local first responders improve public safety communications during a natural or man-made disaster for all 50 states, the District of Columbia, and the U.S. Territories. Grants were awarded by September 30, 2007, and grant projects will be completed in FY 2010. The Digital Television Transition and Public Safety Act of 2005 authorized NTIA, in consultation with DHS to make payments not to exceed $1 billion in the aggregate through FY 2010 to carry out the PSIC program. The grant program will assist public safety agencies in the acquisition of, deployment of, or training for the use of interoperable communications systems that can utilize reallocated public safety spectrum in the 700 MHz band for radio communication.
• NTIA, in its role as supervisor of the administration of the country code top-level domain for the United States (usTLD or .us domain) worked with NeuStar to improve the .us locality space by modernizing usTLD locality-based processes, and creating delegated manager and WHOIS databases. NTIA published a Notice of Inquiry and convened a public meeting to seek views on the continued transition of the technical coordination and management of the Internet Domain Name and Addressing System (DNS) to the private sector.
• NTIA testified before House and Senate Committees about the transition to Digital TV and Public Safety Communications Interoperability.
• NTIA began extensive preparations for the administration of other programs established by the Digital Television Transition and Public Safety Fund, created by the Deficit Reduction Act of 2005. This fund receives offsetting receipts from the auction of electromagnetic spectrum recovered from discontinued analog television signals, and provides funding for several programs from these receipts. These other programs include the New York City 9/11 Digital Transition, Assistance to LPTV Stations, National Alert and Tsunami Warning Program, and Enhanced 9-1-1 Service Support.
• During FY 2007, the Public Telecommunications Facilities Program (PTFP) awarded $22,450,416 to fund 118 projects, including 24 grants so 18 public radio stations and six public television stations can purchase standby generators to enable the stations to continue public service programming during times of emergency. Sixteen radio projects for $2,167,338 will extend new public broadcasting service to over 200,000 people and provide additional service to almost 750,000 people. Sixteen projects for $802,604 will assist in the digital conversion of public radio stations. Forty-eight digital television conversion grants were awarded for $15,012,071 to recipients in 32 states and territories. One grant, to WYES-TV, New Orleans, will replace production and associated equipment which was damaged by Hurricane Katrina. A planning grant will conduct a comprehensive nationwide study of public television digital coverage, necessitated by the change in the service area of many public television stations due to the shut-off of analog signals in February 2009. The University of Hawaii/PEACESAT received an award of $499,351 to continue distance education, videoconferencing, and medical services to Pacific island nations and U.S territories.

The data used to evaluate the effectiveness of performance outcome achievements are reviewed quarterly and the Department attests to the accuracy and reliability of the data. Data on the timeliness of processing frequency assignment requests are maintained by the Office of Spectrum Management. All other data are published on the NTIA Web site. NTIA examined an array of spectrum management policy issues in FY 2007 dealing with innovative approaches to spectrum management and the effectiveness of current processes.

STRATEGIES AND FUTURE PLANS

NTIA will direct the bulk of NTIA’s resources toward achieving the President’s goal of spectrum management reform. NTIA will facilitate a modernized and improved spectrum management system and facilitate economic incentives for more efficient and beneficial use of spectrum. NTIA’s other spectrum management activities include:

• Identifying and supporting new wireless technologies that promise innovative applications for customers of the federal and private sectors.
• Providing the 63 federal agencies with the spectrum needed to support their missions for national defense, law enforcement and security, air traffic control, national resource management, and other public safety services.
• Developing plans and policies to use the spectrum effectively.
• Satisfying U.S. future spectrum needs globally through participation with the 190 other countries of the International Telecommunication Union in establishing binding treaty agreements through world radio-communication conferences.
• Improving, through telecommunications research and engineering, the understanding of radio-wave transmission thereby improving spectrum utilization and the performance of radio-communications systems.

NTIA will also work with DHS on the development of standards for the interoperability of public safety systems and on the continuing implementation of Spectrum Relocation Fund legislation. NTIA will continue work with the Department of Transportation (DOT) on implementation of the Enhanced 911 Act. NTIA will continue work with the Internet Corporation for Assigned Names and Numbers (ICANN) on the management of the Internet DNS. NTIA anticipates that it will participate on behalf of the Administration in a Congressional examination of the Telecommunications Act focusing on telephony subsidy reform and the classification of advanced broadband services. NTIA will also participate on behalf of the Administration in Digital TV transition policy-making and implementation of Internet Protocol Version 6 (IPv6).

CHALLENGES FOR THE FUTURE

In today’s era of modern communications, RF spectrum is critical. Current spectrum management policies are under increasing strain as the demand for existing spectrum-based services grows and new spectrum-related technologies and applications emerge. Working with all affected parties in the federal government and the private sector, NTIA and the Department must find ways to implement the recommendations developed through the President’s Spectrum Policy Initiative to foster economic growth; ensure U.S. national and homeland security; maintain U.S. global leadership in communications technology development and services; and satisfy other vital U.S. needs in areas such as public safety, scientific research, federal transportation infrastructure, and law enforcement. Also, NTIA and the FCC must coordinate the development of a National Strategic Spectrum Plan.

NTIA and the Department must also continue promotion of universal and affordable broadband access. Some of the most promising new broadband technologies are wireless. By expanding the amount of spectrum available for commercial uses, the Department will increase high-speed Internet access. In an era of rapidly changing new technologies, like mobile wireless, high-speed fiber optics, and expanded broadband deployment, government policies should favor customer choice. Regulatory stability in the telecommunications sector will promote both competition and investment. Developing these policy frameworks to support these goals is the challenge facing NTIA and the Department.