Taxpayers Protection Alliance Sends Letter To Senators Urging Increased Sales of Wireless Spectrum

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Today, the Taxpayers Protection Alliance sent a letter to the members of the Senate Subcommittee on Communications, Technology, and the Internet ahead of their hearing this afternoon on the current state of wireless communications in the United States. The letter expresses strong support for the increased sales of wireless spectrum by the Federal Communications Commission [FCC] whereby taxpayers, consumers, and businesses will all share in the benefits of faster wireless services, generated revenue, and increased competition in the free-market. The government owns 60% of the best spectrum for wireless usage and they have the power to put it up for auction which would translate into all the benefits discussed earlier for consumers, businesses, and taxpayers. TPA will be in attendance during today’s subcommittee hearing, and is looking forward to this subject being a much-needed part of today’s conversation.

Read the full letter below:

June 4, 2013

Members of the Subcommittee on Communications, Technology, and the Internet:

Ahead of the Subcommittee’s June 4^th hearing, entitled “State of Wireless Communications,” the Taxpayers Protection Alliance (TPA) writes to express our support for the sale of more wireless spectrum by the Federal Communications Commission (FCC) for taxpayers and consumers so businesses can provide faster wireless services.  These auctions produce revenue for the government while promoting and facilitating healthy competition in the wireless market – allowing companies to allocate the new spectrum in a way to best fulfill consumer demands. The consumer, business, and economic impacts of spectrum auctioning are an important source of fiscal relief to taxpayers nationwide and the government should not stand in the way.

According to FCC Commissioner Ajit Pai, the government controls almost 60 percent of the best spectrum for wireless use.  It is essential to have as much available to consumers who are in need of faster and more reliable wireless services. The addition of more spectrum to the market through the auction process not only reduces dropped calls while increasing wireless coverage, it will also provide much needed fiscal relief.  Experts estimate that, over the next decade, spectrum auctions will net the U.S. Treasury at least $20 billion in revenue, and in a time when we are in need of efficient, cost-cutting, and revenue generating solutions that will help businesses, consumers, and taxpayers.

Spectrum auctions present a unique opportunity not seen every day. Different from other sorts of products or services, spectrum is readily available and just waiting to be used in the marketplace by businesses looking to satisfy the needs of consumers. The technological advances and improvements come as a result of companies possessing more access to broadband and finding ways to bring this resource to its customers in the most cost-effective manner. With unyielding demand for wireless services, it is imperative the FCC allow new spectrum on to the market. Each moment that passes is an opportunity lost.  Once a company has the good fortune of obtaining new spectrum, it’s in the company’s best interest to turn around and use it in a way that best meets consumers’ demands.

While critics claim that a change in spectrum ownership will result in a monopoly, macroeconomics and the actions of the free market are not on their side. More spectrum that is available means increased competition and when companies are forced to compete with each other in order to secure business, the consumer wins by enjoying the best service at the best price. The result of the increase in competition in the mobile market provides consumers with a greater number of choices in wireless services and expands access to affordable mobile services. If a company is ready and able to meet needs and make investments to facilitate commerce, the government should be the last thing to stand in its way.

Delaying or denying the release and auctioning of more government-controlled spectrum will only harm consumers and represent another failure by the FCC to bring new spectrum online. We urge the subcommittee to support increasing the release and sale of more government-controlled spectrum so that businesses, consumers, and taxpayers may all share in the benefits of this advantageous technology.

Sincerely,

David Williams

President