Sides line up as FCC looks to re-allocate valuable spectrum

sidesA crucial side-battle in this week’s release of the National Broadband Plan – and likely a long, drawn out one at that – is the tussle over whether existing spectrum currently allocated to TV broadcasters should be dedicated to broadband services. We weighed in when this plan was first floated (see: Spectrum: Public trust or cash cow?) Now that the FCC has released its formal plan, it’s worth revisiting. The FCC is proposing that the government cutback the portion of spectrum allocated to broadcasters by about 40%, including calls to “reclaim” about 120Mhz of spectrum from broadcasters over the next five years and redirect it to mobile broadband deployment.

Here’s a few more details on the spectrum proposal from CNET:

The FCC believes the choice is clear. Only about 10 percent of the U.S. population still watches free TV using an antenna. And it believes it can reclaim a significant amount of spectrum without affecting over-the-air TV viewing in much of the country. In fact, last month FCC Chairman Julius Genachowski noted in a speech that only about 36MHz of spectrum is typically used for broadcasting in TV markets with less than 1 million viewers. Even in the largest TV markets, only about half of the spectrum is used, he said.

It should come as little surprise that TV broadcasters are not happy about the FCC’s proposal. Lobbyists are already working Capitol Hill to rally political opposition, and the industry has likely begun assembling an army of lawyers to take the fight to the courts.

The Connected Planet Take, Kevin Fitchard:

The biggest problem with broadcast spectrum is its owners it don’t value it very highly. Obviously they like having it, otherwise they wouldn’t fight tooth and nail to keep it. But because their licenses cost little or nothing, they have little incentive to make the most efficient use of it. If they had to pay $1 billion for a license in NYC, I bet they find a way to pack as much content into the spectrum as possible. And if they couldn’t find a use for it, they’d sell it to someone who could.

So why not hold a spectrum auction that both wireless operators and broadcasters can both participate in? If broadcasters really need that TV spectrum for future channels and services, then let them speak with their wallets. If the programming they provide is more important and more profitable than mobile broadband then the market will show us the way, right?

That’s our take on this, let us know what you think in the comments below:

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