OCTOBER 28, 2009

FCC Considers Shifting Some TV Airwaves to Broadband

By AMY SCHATZ
Wall Street Journal

http://online.wsj.com/article/SB10001424052748703574604574499730302393274.html


WASHINGTON—Federal regulators are considering taking back some airwaves 
from television broadcasters and auctioning them off to wireless 
companies to increase the availability of wireless broadband services.

Federal Communications Commission Chairman Julius Genachowski has warned 
that the U.S. doesn't have enough airwaves set aside for wireless 
broadband service in the future, and the agency is looking at a variety 
of ways to remedy that shortage.

"The record is very clear that we're facing a looming spectrum gap," 
said Blair Levin, a former telecom analyst who is in charge of crafting 
the FCC's national broadband plan, which is expected to lay out a 
variety of things the U.S. can do to increase broadband availability and 
usage. The plan will be released in February.

It's not clear if the proposal will actually make it into the FCC's 
final plan. At this stage, FCC officials are mostly trying to get input 
from broadcasters and others. Station owners are likely to fight the 
plan, although the FCC is envisioning paying broadcasters for any 
airwaves that are taken away.

The agency is "looking at everything, including broadcasting" airwaves, 
Mr. Levin said.

The National Association of Broadcasters "believes it is imperative that 
policy makers explore spectrum efficiency choices that don't limit 
consumer access to the full potential of digital broadcasting," said 
spokesman Dennis Wharton.

On Friday, the Consumer Electronics Association released a study it 
commissioned on the value of the large chunk of airwaves set aside for 
TV broadcasters. If the FCC took back all of those airwaves and 
auctioned them off, the government could make up to $62 billion, the 
study found.

Such an approach would cost about $12 billion in payments to 
broadcasters and about $9 billion to "migrate all households that rely 
on over-the-air broadcasts to subscription services," the study found.

The political will to take such an approach could be weak, however, 
because the federal government just spent $2.15 billion over the last 
two years to help consumers move to digital-only broadcast television. 
Consumers who rely on free TV now might also take a dim view of being 
asked to subscribe to cable or satellite television,. Many of them just 
had to go through the trouble of either buying new digital TVs or 
hooking up digital converter boxes to their old TVs to keep them working.

The FCC isn't looking at taking away all of the broadcasters' airwaves. 
Instead, FCC officials are focusing on the benefits of taking back a 
portion of the airwaves set aside for digital TV broadcasts and 
auctioning those off to wireless companies that want to offer more 
wireless Internet services. It's not clear yet how much of the airwaves 
they might suggest taking back.

Some broadcast-station owners are already expressing concern about the 
idea. They want to keep those airwaves for themselves. Many broadcasters 
would like wireless phones and other gadgets to come equipped with 
receivers that would allow consumers to watch digital TV.

"CEA's study ignores the immeasurable public benefit of a vibrant free 
and local broadcasting system that is ubiquitous, reliable as a lifeline 
service in times of emergency, and flexible enough to include HDTV, 
diverse multicast programming and mobile DTV," said Mr. Wharton, the 
broadcasters' spokesman.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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