"There is no question that the auction of 700-megahertz frequencies will yield the treasury substantial sums of money, but we should not let that fact seduce us into forgetting the importance of designing service rules that also meet other critical policy goals," said Commerce Chairman Daniel Inouye, D-Hawaii.

Inouye said those goals include improving public safety through the creation of a wireless network for emergency responders that will work across jurisdictions and boosting competition by attracting new entrants into the wireless market.

Fellow Democratic Sen. John Kerry of Massachusetts said lawmakers do not want a dominant carrier to "warehouse" the valuable spectrum. During questioning, Kerry asked Verizon Communications Chief Technical Officer Dick Lynch whether a third-party wireless provider could enter the market if big incumbents like Verizon win most of the spectrum.

Lynch said there will be "tremendous opportunities" for such newcomers but did not offer specifics. Kerry asked for a follow up answer in writing.

He said the goal of the auction rules should be to encourage innovation, increase wireless, high-speed Internet affordability for consumers, and boost broadband service usage. Kerry, along with a wireless entrepreneur on the panel, stressed the need to boost innovation by requiring the winning bidders to offer open access.

Amol Sarva, chief executive officer for a startup called Txtbl, defined open access as devices and services that let consumers connect wireless broadband to any device -- like a telephone or laptop computer.

Sarva noted the challenge his business faced getting network access. "The door to new ideas is only open if it benefits the incumbent partner," Sarva said.

Much of the hearing focused on a proposal by Frontline Wireless to bid on spectrum to create an interoperable public-safety network. Frontline partner James Barksdale said his was the only plan that would cover 99 percent of the country, including Alaska and Hawaii -- a comment likely aimed at Inouye and the committee's ranking Republican, Ted Stevens of Alaska.

But it didn't help him much when Stevens fired off repeated questions about whether emergency responders would have to pay to use the network. Barksdale explained that they would buy the headsets but would get "a free ride" on the network.

"It's a terrific deal for the taxpayer," Barksdale said. He said the company also plans to sell customers wireless access but reclaim it for responders during emergencies.

Barksdale later conceded that emergency responders also would be charged a wireless lease fee. He did not offer a price when pressed by Sen. Byron Dorgan, D-N.D.