Voices rise over airwaves auction

Tech sectors, old and new, at odds on a lucrative sale

October 31, 2011|By Bobby Caina Calvan, Globe Staff

WASHINGTON - It’s a commodity you can’t see, taste, or touch, but to those trying to cut the nation’s debt, the public airwaves have the sweet smell of cold, hard cash.

As much as $30 billion in revenue could be raised if the federal government auctions off unused slivers of the airwaves to wireless companies.

The Federal Communications Commission has called for the sale, some members of both parties back it, and the telecommunications industry warns that without it, the nation’s wireless superhighway will become a traffic-jammed nightmare of dropped cellphone calls and interminable downloads on high-tech devices.

But one critical group, made up of television and radio broadcasters, is resisting.

These older-generation technology giants hold the licenses to the unused airwaves, granted for free by the government eight decades ago to spur innovation at the dawn of the television age. At stake in an auction, they say, could be access to programming in their smaller markets.

Such hesitancy has sparked a lobbying battle between old guard communications companies and the wireless technology industry. Each is vying for the backing of the bipartisan congressional supercommittee that is seeking to cut at least $1.2 trillion from the nation’s projected deficit.

What is not in dispute is the value of the airwaves, those invisible bands of frequencies that insiders call “spectrum.’’ They allow broadcasts on televisions and radios, as well as transmission of e-mails, Facebook status updates, and conversations by a growing array of wireless devices.

“Spectrum is the most valuable real estate in the world,’’ said Ken Rehbehn, a senior technology analyst with the Yankee Group in Boston.

Such a characterization would resonate with the 12 members of the supercommittee, including Senator John F. Kerry, Democrat of Massachusetts. Meeting mostly in secret, they have not specified which direction they will proceed in. But among their dozens of options is sale of government assets. To backers of an airwaves auction, the broadcasters’ resistance is an impediment to progress.

“The surging growth in data-intensive devices like smartphones and tablets is leaving our mobile economy gasping for air,’’ said Representative Edward J. Markey, a Democrat from Malden and the former chairman of the House subcommittee on telecommunications and the Internet. “To spur innovation, stay competitive in the global economy, and create jobs, we need to make more spectrum available.’’

Advertisement
Advertisement
|
|
|
|