Genachowski Pushes Incentive Auction at Economics Club Q&A
FCC Chairman Julius Genachowski reiterated the importance of holding voluntary, incentive auctions as an available tool to free up more spectrum, during a Q-and-A with David Rubenstein, co-founder of the Carlyle Group, at the Washington Economics Club Wednesday. The FCC is focused on tackling two big spectrum issues: How to free up more spectrum and how to reduce barriers to deploy infrastructure, Genachowski said.
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The FCC has auctioned off all of the easy pickings on the spectrum chart and now it’s time to figure out how to reallocate spectrum that was assigned before the auctions for flexible use took effect, so the market can decide the best use of spectrum, Genachowski said. Spectrum is a bipartisan issue and “we as a country have to be able to move forward together” to make sure spectrum availability is not an obstacle, he said. Incentive auctions would be a win-win for all involved, he said. Auctions would result in more spectrum in the market, a more vibrant broadcast industry, billions of dollars for deficit reduction and other economic value, he said: “I hope this [incentive auction] would happen.”
It still takes a long time for mergers to go through, said Rubenstein, asking if there’s a way to speed up the review process. Having worked in the private sector, Genachowski said he understands the risks long merger review mean for companies. The FCC often does reviews with the Department of Justice, the Federal Trade Commission and states, he noted. The review process used to take much longer and the FCC has been working hard to make the process move efficiently and it did, he said. He declined to comment on the AT&T/T-Mobile merger.
The FCC adopted “a light touch framework” on net neutrality, Genachowski said. The proposal is widely supported by stakeholders throughout the ecosystem, he said. The agency has moved forward to issues like spectrum and Universal Service Fund, he said.
When Rubenstein asked if the FCC could be influenced by the White House, Genachowski said there are rules governing exchanges and the FCC is an independent agency. Meanwhile, the chairman said he’s very focused on what he’s doing everyday, dismissing rumors that he’s taking another position in the Obama Administration.
The FCC is working with other agencies on E911 issues, Genachowski said. One obstacle is having a set of standards that can reduce cost and ensure more efficiency, he said. The agencies are working to accelerate the standardization process, he said. Another challenge is that location accuracy from a wireless 911 call is much lower than a wired 911 call, especially if the caller is in remote areas, he said. Meanwhile, the FCC wants to give its staff hands-on exposure to new technologies, especially new devices, Genachowski said. The agency is planning an initiative that would allow staff to experience innovative devices, he said.
The chairman said he’s not worried about potential health effects of using wireless devices. The FCC for years has been working with the FDA on cellphone standards, he said. Although the FCC doesn’t deal with telecom tax issues, he said “anything that discourages innovation and private investment we need to look really carefully at before taking any chances.” Although the FCC doesn’t have any proceedings on mobile payment issues, Genachowski noted the “tremendous” economic opportunity in the area. The government has to coordinate to help mobile payment take off, he said.