FCC to buy out TV broadcasters to free up mobile spectrum | Ars Technica - 0 views
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John Lemke on 30 Sep 12I had my first issue at step one, "asks broadcasters to tell the FCC how much it wold take for the agency to buy them out". They claim that this is a way to keep cost down by hopefully grabbing the least popular via low bids. I see two issues immediately. Number one by asking them what they want they are going to immediately INCREASE the bids. Two, if you are asking me what I want for my business to change how it broadcasts why would I not include any expense to make the switch. By asking them what they think a fair bid would be, they are, more or less, giving them a blank check.
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the commission will put the newly-freed blocks of spectrum up for auction. If, as expected, the spectrum is more valuable when used for mobile services than broadcast television, then the FCC should reap significantly more from these traditional auctions than it had to pay for the spectrum in the original reverse auctions, producing a tidy profit for taxpayers.
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The objective at an auction is to purchase the object at the lowest possible cost. How much mobile providers are willing to pay will determine how high bids will climb. Based on how our current mobile providers already provide poor service when compared to the rest of the world, how much is that bandwidth actually worth to these companies that, more or less, have a lobbied stranglehold on the consumer?
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