December 12, 2012

G.O.P. Balks at Plan to Add Airwaves for Mobile Internet and Wi-Fi
By EDWARD WYATT
NY Times

http://www.nytimes.com/2012/12/13/business/republicans-tell-fcc-not-to-give-away-airwaves.html



WASHINGTON — House Republicans warned the Federal Communications 
Commission on Wednesday against “giving away” scarce airwaves that they 
said could produce up to $19 billion in proceeds if they were instead 
auctioned to telecommunications companies for use in mobile broadband 
networks.

The remarks, which came at a House communications subcommittee hearing, 
took aim at one of the top priorities of Julius Genachowski, the F.C.C. 
chairman: to make available more unlicensed airwaves, or spectrum, to 
open congested mobile broadband networks and to use in Wi-Fi hot spots.

In September, the F.C.C. proposed freeing 12 to 20 megahertz of spectrum 
for those unlicensed uses. The unlicensed space on the electromagnetic 
spectrum would also be used as “guard bands.” Those are areas that 
border segments of airwaves that are used by cellphone companies, 
broadcasters and other communications entities; their purpose is to 
limit interference from transmissions on nearby airwaves.

Mr. Genachowski defended the commission’s plans. “Unlicensed spectrum 
has a powerful record of driving innovation, investment and economic 
growth — hundreds of billions of dollars of value creation for our 
economy and consumers,” he told the committee on Wednesday.

He pointed to Wi-Fi networks, which operate on unlicensed airwaves on 
the electromagnetic spectrum, as an example of innovation that has 
generated “hundreds of billions in tax revenues” and made the United 
States a leader in the use of unlicensed airwaves.

But Representative Greg Walden, an Oregon Republican, who is chairman of 
the panel, said the law that gave the F.C.C. the ability to conduct 
“incentive auctions” of newly available spectrum required “maximizing 
the proceeds from the auction.”

For the F.C.C. to obtain the highest price for the spectrum it sells, it 
should limit the size of guard bands, Mr. Walden said; he said the 
six-megahertz minimum size proposed by the F.C.C. was unnecessarily fat.

Up to $7 billion of auction proceeds is earmarked to help build a 
nationwide public safety communications network for first responders. 
The spectrum for the auctions is supposed to come from television 
broadcasters who voluntarily give it up or move their position on the 
airwaves in exchange for some of the auction proceeds.

“I support the use of unlicensed spectrum to foster innovation” for 
relief of congested broadband, Mr. Walden said. “What I cannot support,” 
he added, “is the unnecessary expansion of unlicensed spectrum in other 
bands needed for licensed services, especially at the expense of funding 
for public safety.”

The F.C.C.’s five commissioners, who all testified before the 
subcommittee on Wednesday, are split 3-2 along party lines over the 
issue of unlicensed spectrum.

Commissioner Robert M. McDowell, a Republican, said it would be 
premature for the commission to reserve newly available airwaves for 
unlicensed use.

Instead, the commission should set aside the “white spaces” between 
broadcast television channels for unlicensed use, he said. White spaces 
are similar, but smaller, guard bands in the part of the spectrum 
dedicated to broadcast television that are intended to minimize 
interference between stations.

“At this early stage in the incentive auction process,” Mr. McDowell 
said, “it is not apparent that we should stop the progress well under 
way in the TV white spaces arena to create a solution for a problem — an 
alleged shortage of unlicensed spectrum in lower spectrum bands — that 
may never exist.”

The F.C.C.’s plans for unlicensed spectrum received support from 
Democrats on the subcommittee, including Representative Henry A. Waxman 
of California. Mr. Waxman said the way unlicensed spectrum would be set 
aside and used were settled in negotiations on the Public Safety and 
Spectrum Act, which was enacted this year.

“I am troubled by attempts by some to relitigate issues that were 
resolved earlier this year, when the bill passed Congress with 
widespread support,” Mr. Waxman said.

Republicans on the subcommittee also sparred with Mr. Genachowski over 
whether the F.C.C. should limit the amount of spectrum any one company 
could own. That would limit the potential buyers of some spectrum to be 
auctioned. Supporters of restrictions say they are one of a few ways to 
give smaller cellphone companies the ability to build nationwide networks.

Separately, the F.C.C. said late Wednesday that it had agreed to allow 
Dish, the satellite television company, to use spectrum that it 
controled for mobile broadband; previously, the airwaves were to be used 
only for satellite transmissions. The change, which was expected, 
greatly expands the value of the spectrum and could allow Dish to enter 
a mobile broadband partnership with another wireless company.


-- 
=================================================
George Antunes          Voice (713) 743-3923
Associate Professor     Fax   (713) 743-3927
Political Science       Mail: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011

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