On April 12th, the House Subcommittee on Communications held hearings about a FCC proposal to permit local TV stations to auction-off part of their spectrum and share the proceeds with the Federal Government. Generally, broadcasters oppose the initiative while nearly everyone else favors it.
An Intel representative went so far as to testify that the auctions should not be voluntary, but mandatory owing to the pressing need for bandwidth in mobile applications. The FCC's chief of engineering and technology, Julius Knapp, provided supporting data. He predicted 55 million tablet computers will be sold worldwide this year making a $35 billion industry that didn't even exist two years ago. He similarly noted that online shopping more than doubled to $4 billion in 2010 compared to $1.9 billion in 2009. Knapp predicted a spectrum crunch in which demand will exceed supply by early 2014 if nothing is done. He warned the consequences would be more dropped calls and higher prices for mobile service.
Additionally, the Consumer Electronics Association (CEA) announced poll results conducted the prior week. Sixty percent of respondents would prefer to trade-off multiple broadcast TV choices for a faster wireless Internet. Survey participants also reported that 38% got their breaking news from the Internet while 30% obtained it from Cable TV and a marginal 10% from broadcast TV. CEA research concludes that auctions provide the most efficient spectrum allocation and best serve U.S. citizens who are the true spectrum "owners". It argues that if TV broadcasting were the most valuable bandwidth use, then auction buyers would launch new TV stations. However, since previous buyers have repurposed other sectors of auctioned spectrum to mobile uses, it's certain that TV broadcasting is less valuable.
TV broadcasters are opposed owing to concern that auctions will not be truly voluntary. If specific bands are designated and stations in those bands are required to move their carrier frequency, then the auctions are not voluntary. Greg Walden, who chairs the House Subcommittee, appears to be a broadcast industry ally. Prior to winning his seat he owned a chain of Oregon radio stations. He said he would not be "rushed by arbitrary deadlines."
In sum, it's doubtful that Congress will soon approve TV band "repacking". Nonetheless, wireless Internet operators can access TV spectrum by using TV Band White Spaces which was authorized unanimously by the FCC last September. Delaying product innovations to meet an unpredictable "repacking" timeline is a foolish since White Space technology is already legal and does not take anything away from TV broadcasters. More information is available in our TV Band White Spaces: Analysis & Forecast market research report dated March of 2011.
ShareThis