Congress Needs Balanced Spectrum Policy, Report Says
Spectrum policy is getting more scrutiny in Congress in light of the 2007 expiration of auction authority, Congressional Research Service analyst Linda Moore said in a report for Congress. Some have questioned the system’s efficacy. Despite the FCC’s conclusion that auctioning spectrum licenses has sped deployment of new wireless technologies, many ask if the FCC shouldn’t augment auction policy “more aggressively” with other market- driven solutions such as licensing fees.
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Some wireless companies are seen as having a competitive edge from large blocks of spectrum they were given before the auction process took form, while newer entrants have had to buy spectrum at market prices, Moore said. But overall, the auction process is considered a success, since transactions are fast and licenses go to firms that value them most and can best put them to use.
“Spectrum management is an exercise in reconciling divergent interests,” Moore said. Technical advances may make more efficient use of spectrum and ease its allocation, she said. Some observers want a spectrum policy that considers broader issues such as international competitiveness and military and safety communications needs, she said; others favor spectrum auctions to plug budget gaps.
Meanwhile, by creating the Spectrum Relocation Fund, the 108th Congress diverged from the precedent of sending auction revenue into the general revenue fund. The relocation fund, consisting of proceeds from sales of spectrum allocated to federal use but auctioned to commercial interests, will be used to compensate agencies that yield spectrum for auction. The 108th Congress also asked for a spectrum license study, due in October 2005, that document could spur policy changes, Moore said.