The CEA's Gary Shapiro is currently presiding over CES 2011, one of the world's largest tradeshows with 1.6 million square feet of floor space and more than 2,700 exhibitors. But this year is different than others, because he is also promoting his book, The Comeback, which offers prescriptions for how the U.S. can innovate its way out of the current economic malaise. His' recommendations range from cutting spending to reforming immigration policy, but for Shapiro, one issue rises above all others: reallocating wireless spectrum.
You finished this book before the recent FCC Net Neutrality guidelines, but since the rules came out it seems like no one is happy with them. What is your take?
The CEA supports what the FCC did. We think Net Neutrality is important for the growth of the Internet. But honestly, what is more important is competitive broadband. Think about it, if you have your choice of five broadband providers, and you can get out whenever you want to, and you know what the deal is why do you need net neutrality?
But most consumers only have one, maybe two broadband options. So how do we get to competitive broadband market?
Spectrum. We need additional spectrum for the industry to deliver competitive broadband. This debate arose because there aretoo many lobbyists in Washington with too much time on their hands that just wanted to bill clients. It is all short term thinking. There hasn't been any great harm so far without net neutrality. The status quo was kind of OK. If I were the Chairman of the FCC I would have said , "Here's what I am going to issue if you guys are bad" and just leave it out there. By doing what he did he invited a lot of unfortunate criticism.
Now what you are going to see in the next few days is a really visible effort to shift the focus to spectrum. That is the issue of 2011—getting spectrum available. And it is by-partisan issue, Republicans and Democrats agree on it. There is nothing more important that Congress can do in the next two years.
And that spectrum would have to come from television broadcasters?
We loan spectrum to TV broadcasters; it is a loan that is renewed every five years. But it was set up when 100% of the population used over the air TV. Now it is used by 10%. The broadcasters don't need this spectrum, especially now that we have moved to digital.
Unfortunately, somehow broadcasters think they need to be paid to get off the spectrum. And congress is so afraid of the broadcasters lobby they will do it. Broadcasters will get paid from the money raised inthe auction for the spectrum. As a taxpayer, I think that is unfortunate. As you might imagine the broadcasters are not embracing me with open arms.
The Comeback is a pretty political book. Would you every consider running for office?
For what? Neither party would have me.