IN LATE JANUARY a block of satellite broadcast spectrum was put on the auction block by the FCC and sold after two days of competitive bidding for the staggering sum of $682.5 million.
Few thought this block of spectrum would sell for such an enormous sum. But its sale proves that spectrum, a public asset, is indeed a highly valuable commodity.It's no surprise that entrenched interests in the communications industry wanted the spectrum to be given away for as little as $5 million. Now those same interests want to give even more valuable spectrum to wealthy broadcast corporate interests.
Spectrum giveaways should be a thing of the past if public officials who decry corporate welfare programs intend their opposition to serve any greater purpose than political posturing. For it is abundantly clear that spectrum giveaways are a relic of the days when unrestrained government largesse sacrificed the public interest for the sake of special interests.
If we sincerely mean to end the unfair allocation of scarce public resources to wealthy commercial interests, any future allocation of spectrum will be competitive bidding.
The spectrum is a finite public resource. It may prove to be the single most valuable resource held by the public. Recognizing that fact, in 1993 Congress mandated the first spectrum auctions. Ongoing auctions have generated $15.2 billion for the federal Treasury, and these auctions are not yet complete.
Now Congress is debating what to do with Advanced Television Spectrum (ATV) - the mother lode of spectrum. Experts have speculated that auctioning ATV spectrum would raise at least $30 billion in revenue. That is $30 billion in new revenue without raising a single tax or cutting a single program.
Giving away the ATV would constitute gross negligence on the part of those of us who are elected and appointed to serve as stewards of the public trust. Supporters of the giveaway raise the red herring that auctions will bring an end to free television. Nothing is further from the truth. Free television uses a different bandwidth of spectrum and will continue. Currently TV is broadcast over analog spectrum. That spectrum is controlled by the broadcasters and under no scenario can one see it not being used for free TV.
Some also argue that Congress has an obligation to ensure that digital TV becomes a reality. Yet, giving away a valuable public asset will not necessarily achieve that end. Digital TV is experimental. Whether it becomes the next great craze or whether it goes the way of the pet rock is unknown. But giving the spectrum to broadcasters does not ensure long-term public demand.
I am completely confident that if the public demands that television convert to digital technology, then those companies which have bid fairly for spectrum will hurry to meet that demand.
The FCC does not intend to allocate ATV licenses until next year. Congress therefore has a window in which to act. Congress should mandate auctions and prove to the American people that it is the national interest, and not special interests, whom we are dedicated to serving.