Selling Spectrum Should be a Top Priority for Congress and the Administration

Being a native of Philadelphia, Pennsylvania, I am accustomed to think of sports teams such as the Flyers or 76ers when the word spectrum is mentioned.  Spectrum is also the backbone of wireless networks (check out a nice info graphic from CTIA here).  It is the reason that consumers are able to download Angry Birds and why Alec Baldwin was thrown off a plane for playing Words With Friends.  It is also a critical piece of infrastructure that allows rescue personnel talk to each other in times of emergency.  September 11, 2001 highlighted the critical weaknesses with the wireless spectrum and the need to have a comprehensive plan to reallocate and auction off spectrum.

The current problem with spectrum is that the growth of mobile devices has precipitated a need for more spectrum.  According to CTIA, “Spectrum, a finite resource, is like lanes on a highway. Due to the significant increase in mobile devices and how much Americans depend on them, wireless needs more ‘lanes’ to meet current and projected demand.”  And, the problem is that “Since many TV broadcast and government license holders have unused/underutilized spectrum, the U.S. wireless industry wants to purchase this spectrum for billions at auction from the federal government.”  Even though this seems like a well-defined problem with a simple answer of selling more spectrum, Congress and the Federal Communications Commission (FCC) have made it more difficult.

Even though the government has spectrum that it can auction today it has been dragging its feet on the sale of the spectrum.  The last spectrum sale was in 2008 and there are companies that are clamoring to buy more.  In an op-ed in The New York Times on October 21, 2011, Lowell C. McAdam, chief executive of Verizon Communications, suggested that “First, Congress should give permission to the F.C.C. to hold voluntary ‘incentive’ auctions, in which current spectrum holders who no longer need their spectrum can share a portion of the auction proceeds, which they are not currently allowed to do and which would encourage them to return unneeded spectrum.”  In addition, “Congress should establish a fair and transparent auction process that is open to all bidders…and third, we must establish a truly streamlined approach for those who hold excess or dormant spectrum to sell to those who need it and can commercialize it.”   McAdam also recognizes the need for an upgraded communications network for emergency personnel.  “Finally, Congress must ensure that police officers, firefighters and other emergency workers have the spectrum they need, as well as a workable plan and resources for an interoperable nationwide broadband network for critical communications.”

The telecommunications sector has continued to thrive despite the recession.  However, there are still legislative and regulatory policies in place that are inhibiting the full potential of the telecom industry, and these policies need to be addressed as soon as possible.  Better distribution and expedited auctioning of spectrum will help improve wireless broadband service, foster job creation, encourage private investment, boost economic spending, and ultimately help reduce the deficit.  If our country is to recover and continue to thrive, it is imperative that the government address these critical telecommunications issues and serve the needs of Americans.