Today, the Federal Communications Commission (FCC) is auctioning more than $10 billion worth of broadcast spectrum. There’s just one problem: this property is already in use. This $10 billion package of frequencies makes up channels 52 - 69 on your TV dial. The FCC is forcing all TV broadcasters to vacate these frequencies by February 2009.
The rationale for this sounds good: by switching to a new digital TV standard and by eliminating channels 52 - 69, we can free up lots of frequencies for new uses–including a nationwide public service network. The only problem here is that those frequencies are already being used. The government is forcibly taking those frequencies away from current broadcasters.
That’s not quite fair, though. After all, the broadcasters don’t own those frequencies, they just license them from the FCC. If the FCC declines to renew their licenses, they should have no cause to complain. The FCC gives and the FCC takes away. Right? But that raises the question: why don’t the broadcasters own the frequencies they use? How did we come up with a system that views the spectrum as public property which can’t be owned but can merely be regulated and licensed? Why not allow ownership?
Radio frequencies should be considered property just like any other natural resource. Whoever first identifies the natural resource and puts it to use should be considered its lawful owner. We can still keep the FCC around to arbitrate disputes between broadcasters, but there is no need for a heavy-handed regulator. We need a more hands-off approach. That’s proven to work before. For example, the FCC’s decision to leave the 2.4 GHz range unregulated has allowed all sorts of innovation to flourish–most significantly, wireless internet.
In the coming days the auction of the 700 MHz spectrum will likely bring in billions of dollars. When you hear the news, consider the hidden assumption: the government has sole ownership and ultimate authority over a critical natural resource. Ask yourself this question: is this compatible with maximum liberty?
0 Responses to “FCC auction”