The Nature and Scope of the FCC's Regulatory Power in the Wake of the NextWave and GWI PCS Cases

Abstract

The Federal Communications Commission (FCC) is the administrative agency that oversees the use of the electromagnetic spectrum in the United States.' In dealing with parties licensed to use the spectrum, the FCC plays two roles. First, Congress created the FCC in 1934 as a regulator with control of the spectrum.2 In this role, the FCC allocates licenses for use of the spectrum and oversees licensees' use of these licenses in order to prevent interference.3 Second, in 1993, Congress made the FCC a creditor by authorizing the FCC to conduct competitive auctions for nonbroadcast FCC licenses.4 Congress also instructed the FCC to ensure that as part of its auction plan, it reserved certain blocks of spectrum for qualified entities, including small businesses, and made available deferred payment plans on favorable terms.5 These spectrum auctions have generated billions of dollars in revenue as wireless technologies have developed.6