LAS VEGAS – Federal Communications Commission Chairman Julius Genachowski on Thursday pledged to make the release of additional spectrum a top priority for the agency in 2011, and reiterated the FCC's call for broadcaster incentive auction in order to get that accomplished.
"In 2011, a central priority at the FCC is unleashing spectrum to spur innovation, economic growth, and job creation," Genachowski said in prepared remarks he will present later today here at the Consumer Electronics Show.
More and more Americans are picking up smartphones and accessing the Web from mobile devices, and while that is great for business, it also clogs the network. Mobile networks are rapidly approaching the saturation point, but access to additional spectrum could help.
"The coming spectrum crunch threatens American leadership in mobile and the benefits it can deliver to our economy and our lives," Genachowski said.
A lot of that spectrum is currently occupied by TV broadcasters, a large majority of which was freed up after the recent digital transition. As part of its national broadband plan, the FCC last year proposed allowing broadcast TV stations to voluntarily sell some of their spectrum for mobile broadband purposes. Genachowski on Thursday pushed hard to make those incentive auctions a reality.
"In the case of TV broadcasters, under our plan a broadcaster could choose to contribute the six megahertz they are using, or continue to broadcast by sharing a channel with one or more stations, or simply not participate and continue to broadcast as they do today," he said. "Since the DTV transition, some broadcasters are making effective use of the capabilities of their spectrum, but some are not."
For those opposed to the FCC stepping into private business matters, Genachowski insisted that incentive auctions would "utilize free market forces to ensure that spectrum is put to its most valued uses."
"The proposal would unlock substantial value that is now untapped because of outdated policies," Genachowski continued. "It relies on market-based incentives -- hence, 'incentive auctions.'"
Genachowski insisted that incentive auctions would be a win-win for all involved.
"Consumers, companies and our economy would benefit from freeing up spectrum for mobile broadband. Auctions would generate billions of dollars for the Treasury," he said. "And the current holders of spectrum that contribute to an auction can receive a capital infusion and still be able to distribute their programming by sharing spectrum with other stations, or through other platforms." At this point, the FCC has moved to lift technical restrictions that would allow certain bands of spectrum to be used for broadband. Congress, however, has to give the agency the authority to conduct the incentive auctions.
"It's time to take the necessary steps to ensure that spectrum will be the great enabler of mobile innovation in the 21st century, not a chokepoint," Genachowski said. "I believe incentive auctions are a test of whether the U.S. can make the right strategic choices in a complex and fast-moving digital economy."
The National Association of Broadcasters (NAB) is not opposed to the plan, but is not exactly enthusiastic. "NAB has no quarrel with incentive auctions that are truly voluntary. Going forward, we believe policymakers have an obligation to maintain digital TV services currently provided by broadcasters and to allow free TV viewers to benefit from DTV video innovations," NAB President and CEO Gordon Smith said back in November. "NAB will oppose government-mandated signal strength degradations or limitations, and new spectrum taxes that threaten the future of free and local broadcasting."Genachowski is scheduled to answer questions from CEA President Gary Shapiro this afternoon, so stay tuned to PCMag for additional coverage of the chairman's appearance at CES. Shapiro has also called for more spectrum allocation.
In November, the Commerce Department announced a plan to allocate 115 MHz of spectrum to wireless broadband in the next five years. That came several months after President Obama ordered the National Telecommunications & Information Administration (NTIA) within Commerce to work with the FCC to free up 500 MHz over the next 10 years. NTIA has released a 10-year timetable, as well as a fast track option for what can be done in the next five years.
Once a spectrum inventory is in place, the White House also backs a plan to auction off available spectrum, with the money going towards public-safety networks, job-creating infrastructure, and deficit reduction.