The Federal Communications Commission seems to have found free market religion during its promotion of voluntary incentive auctions designed to free up spectrum for wireless services. Under the scenario described today by FCC chairman Julius Genachowski, television broadcasters would put their spectrum up for auction and share in the proceeds raised by the FCC.
One friend and former colleague asked me a couple weeks ago why broadcasters should be paid for giving up a license to a public resource. My response was there was a profit expectation from having those licenses. They have to be made whole somehow.
I think the auctions are an overall good step toward maintaining consumer welfare in the wireless services market. Consumers rather engage in some form of two way communication versus staring into the television. Why just watch the news on TV when you can engage the news on the Internet? Why just watch somebody else’s content on TV when you can develop and distribute your own on the Internet?
One thing I take exception to is Mr. Genachowski’s reference to the auctions as a market-based solution. First, when government is involved, it’s not market-based. Second, if it were market-based, broadcasters would be allowed to play by being able to buy spectrum.
Anyway, if the auctions help to clear more room for cellular providers to put up towers and radiate more radio signals, while reducing my dropped calls and providing more voice and data packages, I’m all for it.
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