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John Lemke

FCC to buy out TV broadcasters to free up mobile spectrum | Ars Technica - 0 views

    • John Lemke
       
      I 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.
  • 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.
    • John Lemke
       
      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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  • Bergmayer also praised an FCC proposal to update its "spectrum screen," a set of rules that prevent any single provider from gaining too large a share of the spectrum available in a particular market. The current scheme, he said, "treats all spectrum alike, even though some spectrum bands are better-suited to mobile broadband than others." As a result, he argued, it has become ineffective at preventing Verizon and AT&T from gaining enough spectrum to threaten competition. He urged the FCC to revise the rules to ensure the new auctions don't further entrench the dominance of the largest incumbents.
    • John Lemke
       
      It is the stuff like this that worries me, on one hand they want a high bid, and on the other it is going to be regulated.
  • Over the last decade, it has become increasingly obvious that America's spectrum resources are mis-allocated. The proliferation of cell phones, and more recently smartphones and tablets, has given mobile providers a voracious appetite for new spectrum. But a big chunk of the available spectrum is currently occupied by broadcast television stations. With more and more households subscribed to cable, satellite, and Internet video services, traditional broadcast television is looking like an increasingly outmoded use of the scarce and valuable airwaves.
  • incumbent broadcasters have controlled their channels for so long that they've come to be regarded as de facto property rights. And needless to say, the politically powerful broadcasters have fiercely resisted any efforts to force them to relinquish their spectrum.
  • incentive auctions
  • The plan has three phases. In the first phase, the FCC will conduct a reverse auction in which it asks broadcasters to tell the FCC how much it would take for the agency to buy them out. Presumably, the least popular (and, therefore, least profitable) channels will submit the lowest bids. By accepting these low bids, the FCC can free up the maximum possible spectrum at the minimum cost
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