Senators Call for Spectrum Handouts with Bureaucrat Written Rules

Digital Liberty ^ | 2012-01-11 | [Staff]

[92nina]

“...[M]ust suppress our desire to be overly prescriptive to derive some predetermined outcome.” Yet, “overly prescriptive” rules to “derive a predetermined outcome” are exactly what they and the FCC want. An unconditional green light to the Commission to auction spectrum will result in restrictions on which companies can bid for spectrum, along with regulations and mandates on how the spectrum can be used. The FCC consistently pushes rules focused on achieving outcomes during spectrum auctions with mixed or failed results. This is exactly how Net Neutrality came to be, and how the FCC botched the D Block and devalued the C Block spectrum auctions in 2008.

Oddly enough, the Senators admit prescribing outcomes is their goal when they subsequently bash the idea of auctions open to all parties, stating it “could have a deterring effect on fostering competition and maximizing auction proceeds.” This both shows their anti-market hand and their myopic view of competition. Instead of more relevant metrics of competition, such as price wars, price drops, attrition rates, and wireless access, the Senators and their allies at the FCC look only at the number of companies holding spectrum.

They also take issue with House concerns that government should not purchase spectrum only to hand it over for unlicensed use. Unlicensed spectrum, which has led to the advent of technologies like WiFi and wireless microphones, can certainly facilitate new innovations and economic growth, in addition to bringing consumers great new products and Internet-based services. The House bill would authorize the FCC to auction new unlicensed spectrum, but the four Senators call such auctions a “rush to fill the Treasury’s coffers with revenue.”

The Senators argue handing out spectrum for free is the “truest form of ‘free markets’.” But, as any free-marketer knows, nothing in any market is ever truly free...

[92nina]

"Congress’s return resumes the discussion on how best to auction more spectrum for wireless broadband, and differences between the House and Senate have yet to be resolved. This week, a small, bipartisan quartet of Senators wrote a letter expressing concern with the House plan, complaining that it restricts the Federal Communications Commission from imposing conditions on spectrum auctions and requires auctions for unlicensed spectrum..."

Take this article and others I found to the fight to the Libs on their own turf; put the Left on the defensive at Digg and at Reddit and in Stumbleupon and Delicious