Certainly one of the possible solutions contemplates an expansion of our VHF band, but in order to do this, additional space must be obtained from the Government portion of the spectrum. We know that the FCC is negotiating with Government (because under the present system there is no means of arriving at any type of solution except a "negotiated solution"), but we do not know to what degree they might be successful, nor just how much possible additional spectrum space would fit into a solution to the problem.

Undoubtedly there would be serious problems attendant to whatever solution is proposed-whether it be an increased number of stations in the same VHF band, an expanded broadcast band, a division of the country in terms of VÍF versus UHF, or a complete transition of all television broadcasting to a single band.

I mention these only in terms of possibilities, all of which have been publicly discussed before Congress. I am not suggesting that they be discussed here, for the problem before this committee is much more encompassing and vital to our national and international problems of radio spectrum use than those of any one service. I can assure you, however, that the television problem is a most important one.

It is important not solely from an industry viewpoint, but more importantly, because of the direct impact of any resolution of the matter upon the public.

Television broadcasting represents a use of the spectrum which is immediately and directly related to the public.

It is for television that the public has invested in the neighborhood of $20 billion in television receivers. This represents more than 50 million receivers in the Nation's homes.

It has been estimated that the average viewer watches television more than 5 hours per day. Also television plays a most important function 95 present economy of prosperity-contributing thusly not only to economic well being, but in the process providing a hitherto incomparable medium for education, entertainment and information.

We believe it of the utmost importance, therefore, that in any study of the spectrum the needs of broadcasting be kept uppermost in mind. We believe, too, that the solution to the entire problem is the proper administration of all the spectrum used by both Government and nonGovernment. This will eventually supply an answer to the myriad of service problems which tend to confuse and retard the orderly expansion of these services in the best interest of the American people.

Now if I may turn to the second problem: "The most appropriate and effective methods of approaching the examination and resolution of these problems." I believe that the Cooley Committee, in its report to the President, put the matter into focus when it said:

In reviewing the structure as it has evolved the committee was continuously struck by the absence of adequate provision for high-level consideration on the Government side of a variety of matters of vital national importance in the area of telecommunications.

The FCC provides a vehicle for adequate consideration in the non-Government area. In sharp contrast, then, as indicated earlier, decisions in the area of Government use or of conflict between Government and non-Government use, are often made by compromise at the operations level by staff members, who though competent in their fields, do not necessarily have the total picture of national interest.

This portion of the report concludes with the statement that there is not available within the executive branch an organization adequate to accumulate the information and experience upon which to base sound action.

However, before there can be any solution to the administrative questions involved in the matter of frequency allocations between Government and non-Government users, I believe there is need for further study.

Further study is required, in my opinion, in order to insure that the rights of all interested parties, the Government, and the public will be fully protected.

In this connection, I agree with the statement contained in the report by the Special Subcommittee on Legislative Oversight submitted to the House on January 3, 1959, wherein it was stated at page

19:

A study of the use of the entire spectrum and a determination as to its allocation and use are urgently needed. This technical job requires the authority of a special congressional task force, since it involves uses of the spectrum by the Federal departments of Government and private persons and corporations. The public interest requires that this study and determination be made objectively by the legislative branch rather than the executive because of the natural predisposition of the executive to favor its own interest in the matter.

I agree with this statement because it would seem highly advisable that there be established a legislative history by a committee of Congress which would serve as guidance to any group or body which might subsequently be established to administer the spectrum, as between Government and non-Government users.

I would suggest that the immediate task is that a committee of this Congress make a thorough analysis of the spectrum situation— especially as it pertains to Government utilization.

The committee charged with this particular assignment—b committee, a joint committee, or a special committee-must }the authority to obtain hitherto secret information regarding governmental utilization of the spectrum. We would hope that the acknowledged experts in engineering and allocations matters would be available to such committee, and on behalf of the broadcasting industry, I can promise you that the National Association of Broadcasters stands ready to assist in enlisting men who meet these criteria.

This committee would soon find that the non-Government use of the spectrum space is an open book, while in the Government use of this valuable resource there exists nó check or control, nor knowledge of overall utilization.

With the information developed in such a study, the Congress would be better equipped to determine the legislative steps which should be taken to guarantee that this great resource is utilized in the best interests of not only the governmental users as such but in the overall best interests of the Nation.

The CHAIRMAN. Thank you very much, Mr. Fellows. Mr. Cooley, I think it would be a good time to give you a chance now, since you and your advisory committee were mentioned on several occasions.

Mr. COOLEY. Mr. Chairman, I have no prepared statement. Our report, a copy of which I now offer for the record, is so recent that I think it takes into account most of the studies and consideration

given to this subject by committees, and particularly by Mr. Stewart's committee in earlier years.

(The report referred to by Mr. Cooley is as follows:)

REPORT OF SPECIAL ADVISORY COMMITTEE ON TELECOMMUNICATION, DECEMBER 29, 1958

LETTER OF TRANSMITTAL

DECEMBER 29, 1958.

Hon. LEO A. HOEGH,

Director, Office of Civil and Defense Mobilization,

Washington, D.C.

DEAR MR. HOEGH: We have the honor of sending to you for transmittal to the President the report and recommendations of the Special Advisory Committee on Telecommunication as called for by your letter of November 4, 1958, creating the Committee and setting forth its mission.

Since the initial meeting of the Committee which you convened on November 18, we have reviewed the administrative organization and procedures currently in force dealing with day-to-day matters relating to telecommunications management within the executive branch and the growing demands for frequency assignments by both Government and non-Government applicants. We have also considered the broad overall methods of allocation of the radio spectrum and the assignment of radio frequencies as well as the availability of desired frequencies. The results of our considerations are embodied in our report which you requested be completed and in your hands prior to January 1, 1959. The Committee is unanimous in recommending to you the conclusions reached in its report. Respectfully submitted.

W. PRESTON CORDERMAN,

Major General, U.S. Army (Retired).

FRANK G. KEAR.

IRVIN STEWART.

WILLIAM G. THOMPSON.

VICTOR E. COOLEY, Chairman.

INTRODUCTION

The telecominunication systems of the United States are essential to the national security, to the safety of life and property, to international relations, and to the business, social, educational, and political life of the country. As such they are one of the Nation's most valuable assets in peace and provide vital and essential support in the prosecution of war.

The President in recognizing the importance of telecommunications declared in his letter to Speaker Rayburn dated July 28, 1958, that "changing technology along with changing needs in Government and non-Government areas present problems in the telecommunication field which require searching examination. The situation is becoming no less complicated by prospective developments in satellites and space vehicles as well as defense weapons systems. Thus it has seemed to me that a fresh examination of the role of the Federal Government in this field would be desirable."

The concern felt by the 85th Congress was indicated by the Senate's adoption of Senate Joint Resolution 106 establishing a Commission to investigate the uitlization of the radio and television frequencies. This resolution was approved with amendments by the House Committee on Interstate and Foreign Commerce but did not come to a vote in the House.

Industry's concern was evidenced more than a year ago and reaffirmed this year through the adoption of a resolution by the Electronic Industries Association calling for a study of the spectrum. Non-Government users of the spectrum, for example, the broadcasters, have indicated a need for additional channels in certain frequency ranges not now available.

While landline and submarine cable facilities are capable of expansion almost without limit, such is not the case with the radio spectrum. There is only one such spectrum, the usable band of which extends in the present state of the art to about 30,000 megacycles-a frequency of about 30 billion cycles per second. This figure may give the impression of an inexhaustible supply, but unfortu

nately all parts of the spectrum are not equally usable. Different parts have different characteristics, many being very useful while others have little or no current application. In consequence, requests for frequencies having the most favorable characteristics are of sufficient volume often to cause an excess of demand over supply.

The importance of efficient use of the spectrum is emphasized from a national security standpoint by the expanding need of radio channels in the Department of Defense. Not only have all branches of the military become increasingly dependent upon spectrum use for communications, but the engineering design of space vehicles and many of our most modern weapons makes the use of radio channels essential to their operation and direction. Also urgent is the increased need of frequencies for modern airplane operation and other important services are equally demanding.

The demand for radio frequencies has been growing steadily since the early 1900's. At the time of the Berlin Radio Conference in 1906 the usable radio spectrum comprised about 500 kilocycles of space. Currently nearly 40 million kilocycles of space, or about 80,000 times as much, is allocated in the United States, of which about 15 million kilocycles is used so intensively that it has become difficult to satisfy new requirements. The increase since the beginning of World War II is about 200-fold and since the Korean action began is about fourfold. Thus it is vital to the welfare and security of the country that the radio spectrum be efficiently and effectively used.

With the foregoing in mind, and being aware of his responsibilities in this field, the Director of the Office of Civil and Defense Mobilization, on behalf of the President, created the Special Advisory Committee on Telecommunication to review the role of the Federal Government in the management of telecommunications. The text of the Director's letter is attached as appendix A.

In view of the study given the subject in recent years, the results of which are available, the Committee felt it was not necessary to hold hearings to determine the existence, nature, and scope of the problem assigned to it. A review of past studies in light of the current situation was undertaken. The discussion and recommendations which follow are based on this review.

OUR CURRENT MECHANISM

The Government of the United States has from time to time established agencies to deal on a continuing basis with various aspects of telecommunication management which includes radio, landline, and submarine cables. As the use of telecommunications has grown, with the Government itself a major user, existing Government mechanisms have required and will continue to require adjustment and strengthening.

The Communications Act of 1934, as amended, gives to the President the responsibility for assigning radio frequencies to the Federal Government agencies, and to the Federal Communications Commission the responsibility for assigning frequencies to commercial and private users, including State and local governments. Thus the law establishes a dual control over a single national resource. Additionally, the act vests in the President wartime authority over all telecommunications.

The necessity for a mechanism to supervise and administer the Government's needs and uses of telecommunications was stressed by the report of the President's Communications Policy Board in 1951.1

The mechanism which was subsequently established on a minimal basis consisted of a telecommunications adviser to the President and a small professional staff. Later reorganization resulted in a downgrading of the office. This important work is now assigned to a numerically inadequate staff-about 12 people under the direction of the Deputy Assistant Director for Telecommunications who reports to the Director of the Office of Civil and Defense Mobilization through the Assistant Director for Resources and Production. Thus it has no established source of high-level direction from executives knowledgeable in telecommunications.

Assisting the Deputy Assistant Director for Telecommunications is the Interdepartment Radio Advisory Committee (IRAC), a Committee of Federal agency experts which affords technical guidance in the assignment of radio frequencies to Government agencies. This Committee reports to the Director of OCDM through the Deputy Assistant Director for Telecommunications. The

1 Telecommunications, "A Program for Progress."

IRAC is primarily a group of coequal users and as such is not an appropriate group to act, nor does it act, as a policymaking or authoritative body.

The Federal Communications Commission which succeeded the Federal Radio Commission in 1934 regulated non-Government telecommunications, including the assignment of radio frequencies, with a staff of about 1,000 people. Administering the work of the Commission are seven Commissioners, which give it a continuing source of high-level direction.

These various segments form our national regulatory and control mechanism of telecommunications.

CONSIDERATIONS LEADING TO A CONCLUSION

As inferred in the introductory paragraph of this report, the basic problem giving rise to the appointment of this committee is the fact that in certain parts of the radio spectrum the demand for frequencies has become greater than the supply, and the further fact that the trend in volume of applications, both Government and non-Government, for frequencies in specific bands indicates that the situation will grow progressively worse.

Although it has been possible to date through piecemeal compromise on the allocations and assignments of radio frequencies to satisfy most requests in a workable manner, it is plainly of great importance to our national security and welfare that the mechanism of allotting and assigning frequencies, particularly in the Government field, be reviewed and strengthened to the end of assuring the most effective use of a scarce but essential national resource.

A consideration disquieting to many is the fact, as mentioned earlier, that the law establishes a dual control over the radio frequency spectrum, the President having responsibility for Government use and the Federal Communications Commission for non-Government use. Thus there is no individual, agency, or board invested with the responsibility for the effective use of the radio spectrum as a whole.

In reviewing the structure as it has evolved the committee was continuously struck by the absence of adequate provision for high-level consideration on the Government side of a variety of matters of vital national importance in the area of telecommunications. The Federal Communications Commission provides a vehicle for adequate consideration in the non-Government area. In sharp contrast, as indicated earlier, decision in the area of Government use or of conflict between Government and non-Government use, are often made by compromises at the operational level by staff members, who though competent in their fields, do not necessarily have the total picture of national interest. There is also an unfortunate absence at present of anyone in the executive branch with adequate knowledge, experience, and stature to act for the President in these matters and there is not available therein an organization adequate to accumulate the information and experience upon which to base sound action.

CONCLUSION

In the opinion of the Committee any sweeping change in the regulation and control of telecommunications by the Government and in the legislation therefor, should be considered only after extensive study and the development of a wellthought-out course of action. The Committee does feel, however, that in advance of such a study, certain immediate steps can and should be taken to strengthen the executive branch side of telecommunications management.

It has been suggested that additional powers in this area might be given to the Federal Communications Commission. To give such powers to the FCC would present a number of difficulties. That body is fully occupied with its regulatory and assignment functions in the non-Government field. The duties needing attention, including the allocation of frequencies to Government agencies, call for a different type of operation than is required in an agency concerned with the regulatory problems of nongovernmental users. It would also seem inappropriate to give the FCC the power to act in matters affecting the executive agencies or responsibilities relating closely to national defense or foreign affairs. These are areas of decision which belong to the President and should be his prerogative to delegate. Because of these considerations the Committee believes that these broad discretionary functions can best be discharged and the strengthening best be accomplished through creation of a board within the Executive Office of the President to act for and be answerable to the President in the carrying out of this responsibilities under the Communications Act.