Genachowski ‘Hopeful but Not Certain’ Congress Will Authorize Incentive Auctions
Chairman Julius Genachowski is “hopeful but not certain” that Congress will authorize the FCC to hold voluntary incentive auctions to free up spectrum for wireless broadband, he said Wednesday. Recent studies have predicted that spectrum demand will increase by a factor of 35 but Genachowski said he thought that was “too conservative” and Congress must move quickly to help the U.S. regain its world-wide technological lead. Without contiguous spectrum blocks, wireless carriers can’t create broadband networks and tech companies will move overseas, Genachowski said at the Brookings Institution. There’s a technology “crisis” in the U.S., he said. “The gap is going to increase every month we wait."
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CEO Randall Stephenson said AT&T has spent some $11 billion on spectrum licenses since 2007, and he was “pleased” to see Genachowski’s sense of urgency. Without more spectrum, the country’s tech sector will face rationing, which will drive up costs, Stephenson said.
"Finding additional spectrum to auction for broadband will be a priority this year,” said House Commerce Committee Chairman Fred Upton, R-Mich. “Among other things, legislation will likely include voluntary incentive auctions. Our efforts on spectrum will not only promote broadband, but jumpstart the economy, create jobs, and generate significant revenue for American taxpayers.”
Two House Democrats said making spectrum available for broadband is a priority. Rep. Anna Eshoo, D-Calif., a possible candidate for House Communications Subcommittee ranking member, said “it’s imperative that we embrace an appropriate spectrum policy. … We must examine all of our options to achieve this goal, including voluntary incentive auctions and more efficient use of existing spectrum.” Rep. Ed Markey, D-Mass., said he plans to introduce legislation this year to reallocate 500 MHz of spectrum for wireless broadband. “Without adequate spectrum, our country’s ability to create jobs and compete globally will be stunted as smartphones and other mobile devices and services are starved for the spectrum needed to operate effectively and reliably for consumers,” said Markey. He drafted a bill last year that would have authorized incentive auctions.
If the auction plan goes forward, it’s “critical” that rural carriers get a share of the newly created spectrum, a spokeswoman for the National Telecommunications Cooperative Association said. “Spectrum in rural areas should not be permitted to lay fallow when small providers are ready, willing and able to bring state-of-the-art wireless applications to rural communities,” the spokeswoman said in an e-mail. Rural Cellular Association President Steve Berry said the FCC ought to attack data roaming and interoperability questions, as well as reserving small chunks of spectrum so small and rural carriers can get involved in the bidding. “If you get these things, you'll get more bidders because you'll have more certainty,” Berry told us.