Winner Winner Highest Bidder? Not Just in Real Estate

Single family homes, used cars, gasoline, shipping costs — and spectrum. Do all these things belong in a market economy, purely driven by the forces of the invisible hand? Or is there an alternative we should consider for doling out this precious limited resource, and why? 

FrequencyPULSE checks in again this week with our expert panelists for some of their thoughts on spectrum allocation. (You’ll have to ask them directly how they feel about our economy at large.)

This week’s question: Is auctioning spectrum the best way to ensure fair use of our precious airwaves?

Photo by Towfiqu barbhuiya on Pexels 

Read on for our panelists’ thoughts and sign up to receive the next Frequency Pulse newsletter if you’re not on our list. Or share the link with your network to sign up.

RYAN JOHNSTON, Policy Counsel, Federal Programs Next Century Cities:

It depends. Auctioning spectrum provides a centralized listing of what spectrum is available, who is bidding on it, and who is currently utilizing that licensed spectrum. However, these licenses are often purchased by large incumbent telecommunications companies that make it impossible for smaller providers, municipalities, or cooperatives to use the same spectrum to provide service. This is especially the case when a provider obtains a license and does not provide service across the entire geographic area the license covers. There are certainly merits to auctioning spectrum, but there are circumstances in which the potential pitfalls outweigh the benefits.

KATHLEEN BURKE, Policy Counsel, Public Knowledge:

No one way of granting access to spectrum is the best way to ensure that our airwaves reach their maximum potential to serve the needs of the public. Instead, the best approach is to provide a diverse array of opportunities for our nation’s telecommunications providers and technology innovators to access the spectrum they need. Unlicensed access allows innovators to continue exploring what’s possible without the cost barrier of needing a license. When it’s not possible to move incumbent spectrum licensees, sharing regimes allow flexible spectrum access where and when an incumbent’s use is less intense. And, auctioning access allows communications providers to secure spectrum licenses on terms that allow them to provide consistent, high-quality service to their customers. The best spectrum access regime is one that finds the right balance between ensuring consumers have access to quality communication services and will reap the benefits of advancing technology.

JEFFREY WESTLING, Director of Tech & Innovation, American Action Forum:

Auctions remain the best way to assign operating rights for licensed users. Parties who value the license the most obtain the operating rights, though in-part the specific design of the auction will come into play. Unlicensed works as a perfect compliment to this regime by dedicating specific bands to any operator who wishes to use the band, so long as they comply with the FCC’s rules. This promotes innovation and testing, all while keeping the licensing regime to ensure that parties with exclusive licenses can operate without significant fear of harmful interference.

MICHAEL CALABRESE, Director, Wireless Future Project, New America:

Auctions of spectrum for mobile carriers served one important purpose, which was to facilitate investment in mobile carrier networks with contiguous national or regional coverage. However, today the pressing need is not coverage, but capacity and diverse use cases. Our wireless future is demanding direct access to spectrum by enterprise for IoT networks and by everyone for Wi-Fi. There is very little unused spectrum left that can be auctioned — but there are many very underutilized spectrum bands that can be shared.

Now it’s your turn: tweet us or email us to sing the praises of this invaluable resource and join this conversation. We’ll feature your thoughtful submissions right here in a future piece.

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