Quenching Spectrum Drought

Saying the demand has far outstripped supply, Clint Odom, legal advisor to William Kennard, FCC chairman, said not finding ways to deliver spectrum for 3G could adversely affect the U.S. position in the world market. Odom outlined the two current methods for reallocation.

The FCC takes the spectrum forcefully and gives it to entities that can provide higher value. The second, more preferred method, is voluntary. Using market forces, the FCC would press incumbents to relinquish spectrum. Odom cited the 700MHz model in which broadcasters are being encouraged to move. Unfortunately, broadcasters view that spectrum as property "that is sitting on top of oil fields" and are slow to clear out.

So, the FCC is seeking creative solutions to light a fire under broadcasters. Odom said it may move the required eviction date from 2006 to a closer date. It also may mandate that all televisions be capable of accepting digital signals. Another idea is to require broadcasters to pay a squatters fee.

Moving the broadcasters from the 700MHz spectrum is not the only way to free up spectrum. Odom asked for industry support in pushing for a quick resolution of the C-block bankruptcy case. He said the FCC will push for the Dec. 12 re-auction date, but he anticipates delays. Finally, Odom said the FCC is considering the possibility of allowing service providers with excess spectrum to lease portions of it to other wireless companies.

The ultimate goal, according to Odom, should be to put the spectrum to higher and better use, without unnecessary delay.