Obama Seeks Wireless, Cybersecurity Funding in FY 2013 Budget

"We think the wireless initiative is very important,” White House Office of Science and Technology Policy Director John Holdren said Monday at an OSTP budget briefing. “We are hopeful that the Congress will support all of these [wireless broadband] efforts.” Congress is considering authorizing voluntary incentive auctions and building a public safety network under payroll tax extension legislation due for votes by the month’s end. But Holdren declined to predict whether spectrum would make the final cut.

Obama’s FY 2013 budget has several wireless proposals “aimed at meeting the 500 MHz 10-year spectrum allocation goal outlined in the FCC’s March 2010 National Broadband Plan and endorsed by the President,” said David Taylor, managing partner of Capitol Solutions and a former Senate Appropriations Committee aide. “The cumulative effect would cut the deficit by $21 billion over 10 years. Based on the information available in the President’s FY13 budget documents, the OMB forecast of net auction proceeds over the next 10 years is at least $26.3 billion."

Leading the world in wireless broadband “requires freeing up underutilized spectrum currently dedicated to other private and Federal uses,” the White House wrote in the FY 2013 budget. Like last year, the White House proposed granting authority for voluntary incentive auctions. “This step is critical both for reallocating spectrum and repurposing it over the coming decade to greatly facilitate access for smart phones, portable computers, and innovative technologies that are on the horizon,” the White House said.

Using proceeds from voluntary incentive auctions, the budget would provide $7 billion for deployment of the public safety network. The number is closer to the House GOP proposal of $6.5 billion than the Senate’s proposal in S-911 of $11 billion. As before, Obama’s budget would reallocate to public safety the 700 MHz D-block, valued by the White House at $3.1 billion. The White House proposed setting aside some spectrum from the auctions for unlicensed use, as proposed by the Senate. The budget estimates the auctions would reduce the deficit by $21 billion over 10 years.

Obama again proposed a Wireless Innovation Fund using $300 million from voluntary incentive auction revenue. The amount would fund development of standards, technologies and applications for deployment of the public safety network. The budget classifies the $300 million as mandatory funding for the National Institute of Science and Technology. In another repeat from last year, the budget would authorize a spectrum license user fee for licenses not allocated via auctions. Also, the White House proposed $51 million for the National Science Foundation (NSF) Enhanced Access to the Radio Spectrum program.

On cybersecurity, the budget proposed $769 million for the National Cyber Security Division of the Homeland Security Department. The money will “improve security of Federal civilian information technology networks while enhancing outreach to State and local governments and critical infrastructure sectors,” the White House said. The budget proposes $110 million for a cybersecurity basic research initiative at NSF. And it proposes $2.1 billion for Defense Department research in several areas including cybersecurity. “DOD-funded research provides future affordable options for new defense systems and helps the Nation avoid technological surprise by potential adversaries,” the White House said.

NIST requested $8 million for the National Strategy for Trusted Identities in Cyberspace (NSTIC). The FY-2013 request “funds for competitively selected pilot project grants that will enable the private sector to work with state, local, and regional governments to improve acceptance of Identity Ecosystem components,” NIST said. The pilot programs “can provide a foundation for more trusted online transactions and tackle barriers that have, to date, impeded the Identity Ecosystem from being realized.” The budget includes $708 million for NIST’s intramural laboratories, “supporting high-performance laboratory research and facilities in areas” including cybersecurity, the White House said.

The FCC requested nearly $347 million for FY 2013, up from $340 million received from Congress in FY 2012. The White House proposed $47 million for NTIA in 2013, up from the $41 million the agency is estimated to receive in 2012.

The FCC said its request takes into account “continuing efforts to accelerate broadband deployment throughout the nation; implementing the FCC’s reforms to the Universal Service Fund programs; improving the FCC’s information technology infrastructure and continuing to enhance the security of its systems; investing in the FCC’s technical and engineering capabilities to detect interference issues, plan for interoperability needs, and test new technologies; and studying participation in the communications industry.” Obama again proposed cutting the FCC’s Telecommunications Development Fund, a program created by Congress in the ‘96 Telecom Act that has traditionally had the strong support of important Democratic constituencies including the Congressional Black Caucus. The complete FCC budget is at http://xrl.us/bmrx8w.

The FCC also released a 2012-2016 strategic plan (http://xrl.us/bmrx9i). The commission’s goals include: (1) spurring broadband deployment and adoption, (2) maximizing spectrum benefits, (3) protecting and empowering consumers, (4) promoting innovation and investment, (5) promoting competition, (6) developing communications infrastructure for public safety, (7) advance broadband use for national purposes and (8) “operational excellence” within the agency.

NIST plans to spend $10 million supporting advanced communications networks in an effort that it said could increase broadband capacity “10 or more times.” Of the $10 million, NIST proposed $4 million to develop test and measurement techniques to “characterize critical design requirements for next-generation Internet architectures.” NIST proposed another $4 million to “measure complicated signals at new bandwidths” in wireless networks, it said. “NIST’s ultrafast electro-optic measurement technology ... can be used as a precision source of quality control for wireless communications, enabling Internet access at these potential high data rates,” it said. Also, NIST proposed $2 million to maintain its 700 MHz public safety broadband demonstration network, which gives manufacturers a site to deploy and evaluate their systems.

Obama proposed $3.8 billion for the multiagency Networking and Information Technology Research and Development (NITRD) Program. NITRD plans and coordinates agency research efforts in cybersecurity, spectrum sharing, cloud computing and other IT areas.

Republicans condemned Obama’s budget. “The President has not merely ducked from our fiscal and economic challenges, but -- with his fourth straight budget flop -- he has advanced policies that dangerously accelerate the crisis before us,” said the minority on the Senate Budget Committee. The Obama budget “falls exceptionally short in many critical areas,” said House Appropriations Committee Chairman Hal Rogers, R-Ky.

The House Appropriations Committee announced FCC and FTC budget hearings next month in the Financial Services Subcommittee. FTC Chairman Jon Leibowitz and Commissioner Thomas Rosch are scheduled to testify March 5 at 3 p.m. in Room 2359, Rayburn Building. FCC Chairman Julius Genachowski and Commissioner Robert McDowell are to testify March 19 at 3 p.m. in the same room. The House Communications Subcommittee has its own FCC budget hearing this Thursday at 9 a.m. in Room 2123, Rayburn Building. Witnesses haven’t been announced.