usage data has been obtained in our spectrum occupancy recording program, but this has been severely limited by insufficient personnel and equipment.

Expansion of this program would involve studies of communication practices and procedures affecting channel loading, possibility of higher channel utilization by use of directional antenna and cross-polarization, possibility of using geography to increase channel availability, and "trunking" or other means to provide availability of service to services having critical but occasional requirements. Principal consideration should be given to studies of the channel utilization within several of the largest metropolitan areas of the U.S. where the need for expanded usage of the spectrum is most urgent. The cost of establishing necessary facilities in one such metropolitan center for the first year, including rental of space, utilities, purchase of equipment and personal services would be in excess of $300,000. We are presently engaged in a contract for a study of the land mobile service in New York and Detroit which will give an improved understanding of the problem.

LABORATORY FACILITIES AND PERSONNEL

The Commission's laboratory facilities and personnel are inadequate to provide a technical basis for solution of present and foreseeable communication problems. In order to provide the Commission with technical information needed in its regulation of present day communications, and to place the Commission in a position to plan for greatly expanded communication needs of the future, expanded laboratory facilities are needed. The present facilities and personnel are minute in comparison with those of other agencies and with foreign groups having similar responsibilities. There should be a planned expansion program resulting in tripling laboratory facilities and personnel over a 3-year period. This would involve construction of additional facilities, purchase of new equipment and enlargement of staff at a cost totaling approximately $2,000,000.

FREQUENCY ALLOCATION IN LAND MOBILE SERVICES

The use of land mobile radio is increasing rapidly as more and more businesses find its use essential to more efficient operation and increased profits. The result is increasing competition between this rapidly growing service and other services, especially TV. This presents a complex problem of allocating available frequencies in a manner that will permit equitable use and maximum expansion potential for all the services concerned. This involves (a) the susceptibility to interference of wired distribution systems; (b) the feasibility of operating land mobile stations in the 1,000 MHz region; and (c) channel sharing with TV. The first of these problems could be completed in approximately six months, the other two would take approximately two years each at a cost of $50,000 per year. No additional personnel would be required. Work that could not be handled by present personnel would be contracted out.

In the area of system performance, we are usually unable to make sufficiently thorough studies of competing systems in order to select the one which gives optimum spectrum utilization or performance. Similarly, we are not in a position to take the initiative in stimulating technological improvements leading to better spectrum utilization. For example, much of the congestion in the land mobile service in densely populated areas is caused by a type of interference known as "intermodulation". Although this congestion leads to demands for additional frequency space, it could be relieved to a considerable degree by techniques to reduce "intermodulation" pollution of the existing land mobile bands, and of any new bands which may be allocated. Only by increased appropriations and staffing can the FCC deal adequately with these circumstances which cause inefficient utilization of frequency allocations. Greatly augmented systems development activity by the FCC is essential to a substantial improvement in spectrum utilization.

A very substantial increase in engineering staff would be necessary to deal adequately with problems which, under present conditions, must be treated superficially. For maximum spectrum utilization, it is necessary to examine critically the bandwidth requirements of every user or licensee or new kind of proposed radio service. Yet, with present staffing this is impossible.

Antenna research is essential to all-over frequency allocation. This involves research into methods of measurement of transmitting antennas, correlating the information obtained with existing survey data, and employing proper surveying

procedures. The result would be the resolving of presently undiscovered causes of measurement error in data used as a basis for developing propagation curves. Maximum utilization of available spectrum space is in direct ratio to the accuracy of the curves employed. The cost of such a project is estimated at $250,000 the first year and $100,000 per year for succeeding years.

The foregoing estimates will give you an approximation of the additional resources we feel are necessary to do an adequate job in the field of frequency management.

REQUIREMENTS FOR ENFORCEMENT BY FIELD ENGINEERING STAFF

Another area of vital concern to us, and to which we are unable to devote sufficient resources, is the enforcement function carried on by our Field Engineering Bureau. This Bureau provides an enforcement service which protects the multibillion dollar public investment in radio communications. This investment consists not only of the vast quantities of equipment and facilities devoted to communications but includes, as well, the infinite value of the scarce radio frequency spectrum. The latter will lose its value if frequencies allocated within its boundaries cannot be effectively used because of congestion and disruptive radio interference. This situation is in fact occurring and we know that the value of many frequencies assigned for public safety, health, local governments and industrial usages is being diluted by increasing congestion in the spectrum generated in large measure by improper operations. The more the radio spectrum is used, the more important is the rigid observance of Commission rules and regulations. Otherwise, spectrum pollution will occur, producing unnecessary waste of this vital national resource. Rules and regulations are meaningful only when they are followed. In order to obtain acceptable levels of conformance to its rules, the Commission has maintained an enforcement function in the Field Engineering Bureau.

Without adequate regulation the legitimate users of radio communications (be it public safety as in Marine, Aviation, Police and Fire, business and industrial as in Trucking, Railroads, Taxi Cabs or commercial enterprises or broadcasting as in Radio and Television), all will become vulnerable and be plagued by increasing communications interference which will progress with inevitable certainty from noticeable to annoying to destructive.

Adequate enforcement of the usage of the radio spectrum is directly proportional to adequate manpower. Enforcement is a hard, unglamorous, oftentimes thankless task which can be accomplished only through the continuing diligent application of manpower in sufficient quantity to produce the desired control in the areas concerned.

The workload of the Field Engineering Bureau is directly related to the number of authorized stations and transmitters. The following chart portrays graphically how much more rapidly the number of stations and transmitters has increased than the staff of the Field Engineering Bureau which has responsibility for the field enforcement activities of the Commission.

A few examples which serve to illustrate how the shortage of manpower is depriving the user-public of services to which it is entitled are as follows:

(1) Small business men have an important need for radio communications. The cost of equipment available in the Citizens Radio Service (CB) makes its use economically feasible to many small business men who otherwise would be excluded from the use of radio communications. Many have attempted to use CB radio for business purposes and have lost both their equipment investment and their communications capabilities because of radio interference generated by the widespread, uncontrolled violations of rules in the CB service. Making funds available for this Commission in sufficient quantity to provide adequate radio enforcement would constitute a vital public service of significant economic importance.

(2) Only seven percent of the stations in the land mobile services (excluding Citizens Radio stations) are inspected during the five-year license period. This relatively low inspection rate encourages technical and operational communications violations which spawn radio interference.

(3) The Commission annually receives about 28,000 complaints of interference to television reception. The priority of other work assignments together with the lack of available manpower prevents many of these cases from receiving attention for a year or more. Meanwhile, these persons, along with many who do not complain, simply suffer the degraded service to the detriment of not

only the viewer but the broadcasting industry as well. If the Commission were given sufficient manpower it could make more investigations of interference reports and more frequent inspections of licensed stations to increase compliance with the regulations and to promote improvement in technical operations. It is conservatively estimated that literally thousands of people in major population centers would profit from the comparatively modest investment in such enforce ment manpower.

(4) Some broadcast stations are not inspected during the entire 3-year license period. Increased inspections would raise the technical and operational level of radio communications service available to the public.

(5) The public was deprived of speed and accuracy in locating radio interference sources by the closure of over 3,000 monitoring watches during fiscal 1968, simply because of lack of manpower.

(6) The public must travel hundreds of miles to take radio operator examinations because we have no staff or funds to provide more examination points. Many of the applicants need the radio operator licenses to earn a livelihood.

Additional manpower alone is not sufficient to meet our responsibilities. Men must have the tools with which to do the necessary work. The Commission's manpower resources must be augmented by an adequate supply of modern electronic equipment capable of meeting the technical and operational demands imposed by rapidly advancing communications technology.

ENFORCEMENT NEEDS IN BROADCAST BUREAU, INVESTIGATION OF COMPLAINTS

Our efforts in the investigation of complaints in the broadcast field, and the insuring of compliance with FCC regulations, are severely restricted because of limited appropriations.

No regulatory or law enforcement agency is able to detect or punish all violations. However, unless a certain level of enforcement is achieved, the laws and regulations will be generally ignored and the regulatory process will become ineffective. Like most other enforcement programs, that of the Commission is implicitly based on the principle of deterrence. Although it may lack knowledge of the majority of violations, it attempts to investigate and punish the substantial ones which come to its attention, to the end that other licensees will be deterred from committing violations. The point at which a deterrent enforcement program achieves substantial effectiveness must be based primarily on individual judgment rather than on statistics such as how many traffic accidents, injuries, and fatalities have occurred in a given period, but our available statistics may throw some light on the problem. The Broadcast Bureau receives some 30,000 complaints or reports of violations per year, either from the public, persons within the industry or the Field Engineering Bureau. An estimated 2,500 to 3,000 of these actually allege violation of statute or Commission rule or policy, as contrasted to communications from the public which complain about aspects of broadcasting over which the Commission has not asserted regulatory authority. Of these 2,500 to 3,000 complaints the Complaints and Compliance Division of the Broadcast Bureau is able to make field investigations of only some 40 to 50 each year. This average is based on a staff of six field investigators plus legal and clerical personnel in the Washington office. We do not believe that this enforcement effort is sufficient to achieve a substantial deterrent effect. The following appear to be the alternative future courses of action open to the Commission regarding investigation and enforcement in the broadcast field: (1) Allow the Complaints and Compliance Division to remain at its present staffing level and travel budget;

(2) Increase the staff and travel budget by a moderate amount to increase the number of field investigations of alleged violations;

(3) Adopt the alternative outlined in (2) and, additionally, institute a program of one-day nontechnical investigations of all broadcast stations once in each three-year license period.

The cost under each of the above alternatives is estimated as follows: (1) No increase.

(2) Increase of staff by six GS-13 field investigators, two GS-13 attorneys and two GS-4 typists, plus $15,000 additional travel expenses-total estimated additional annual cost: $130,000.

(3) Increase in staff and dollar cost (in addition to the increases set forth in (2)) by 16 field investigators, five attorneys, and five typists, plus a corresponding increase in travel budget-total estimated additional annual cost: $375,000.

Alternative (1) would provide for continuation of the same operation as at present, and is inadequate to permit the Commission to exercise its regulatory responsibilities.

Alternative (2) would permit more thorough investigation of cases requiring field investigations; would permit an increase of approximately 50 per cent in the number of cases that could be given field investigation, and would permit some additional increase in the Division's activities in investigating complaints by means of correspondence and in handling complaints and inquiries. Alternative (3), which also incorporates the expansion recommended in Alternative (2) and adds thereto a procedure for making a one-day non-technical inspection of every broadcasting station every three years, would provide a considerably greater fund of information about the operations of broadcast licensees. It should be emphasized that the additional one-day inspections would not supersede the more detailed field investigations which we now make into specific complaints.

PROCESSING OF APPLICATIONS FOR RENEWALS OF LICENSE

In the renewal of licenses area, the Commission reviews approximately 3,400 AM, FM and TV broadcast and translator renewal applications annually, which rquires the services of engineers, attorneys, accountants, broadcast analysts and clerical employees.

The processing of renewal applications can be divided into four main areas: programming, engineering, accounting and legal considerations. Staff deficiencies have impaired renewal processing in the programming, engineering and legal areas. These areas are discussed separately below.

Programming

Four Renewal Branch staff employees (2 accountants and 2 broadcast analysts) are engaged in the processing of Section IV of the renewal applications, which is entitled Statement of Program Service. In 1965, the Commission revised the AM and FM logging rules and the reporting form (Section IV) of the applications. In 1966, a similar revision was made for the rules and reporting form for television stations. The revised forms call for a more comprehensive and detailed report by applicants for renewal of commercial AM, FM and TV licenses than was previously required. For instance, Part I of the revised Section IV requires applicants to submit separate exhibits describing: (1) the methods used by the applicant to ascertain the needs and interests of the public served by the station; (2) the significant needs and interests which the applicant believes his station will serve during the coming license period and (3) typical and illustrative programs or program series that the applicant plans to broadcast to meet those needs and interests. The Renewal Branch staff is required to analyze the often detailed and voluminous responses of an average of 300 stations every two months. Often these responses are inadequate or incomplete. For this reason, the Commission is currently seeking Budget Bureau approval for the dissemination to all licensees of a statement clarifying their obligations with respect to the ascertaining and reporting of programming needs and interests.

Beginning with those AM and FM stations whose licenses expire on April 1, 1969, the Commission will have its first opportunity to compare past performance reported in the new applications with the programming proposals made on the revised form three years prior to that date. Comparing the old records on each station with the composite week analysis in the current renewal will be a time consuming process.

The staff must also make a careful review of commercial proposals which exceed generally accepted norms.

In addition to the above, these same four staff members are responsible for reviewing the program logs for conformity with the Commission's logging rules and, on a spot check basis, for accuracy. A review must also be made of responses to other sections of the renewal form.

Engineering

There are two engineers (one GS-14, one GS-12) processing the engineering portion of the renewal applications. The increasing number of directional antenna problems disclosed by the processing of the engineering portion of the AM renewal applications has resulted in a substantial increase in our engineering workload. As a result, the number of applications deferred past the license expiration date for engineering reasons has increased substantially over the past year and a half. For example, 100 were deferred as of April 1, 1968, while only 57 were deferred for similar reasons on April 1, 1965. To properly dispatch the workload, two additional engineers (GS-12) are needed.

Attorneys

In December 1963, the staffing plan for the Renewal Branch included nine attorneys, most of whom were experienced in the field. The staffing plan as of July 1, 1968, provides for six attorneys, two of whom are recent law school graduates.

While the professional staff has decreased, there has been a steady increase in the number of complex cases requiring the attention of experienced attorneys. Petitions to deny renewal of licenses are being filed in increasing numbers. The number of renewal hearings is also increasing. In addition, a close examination of renewal applications has disclosed an increasing number of logging violations. These, together with technical violations, may result in short-term renewals or forfeitures and a resulting increase in the workload of the staff attorneys. Three attorneys (GS-12) should be added to the Renewal Branch staff. Costs

Funds required for salaries and related expenses for the nine additional professional employees mentioned above, together with those for four additional supporting clerical employees, amount to an estimated $130,000 per year.