By Allen Tsai | Wed Feb 24, 2010 5:42 pm |
Federal regulators are hoping to get more wireless spectrum for advanced mobile services by offering to pay television broadcasters -- including NBC, CBS, Fox and ABC -- to give up their rights to airwaves worth an estimated $50 billion.
As part of a proposal, called the "National Broadband Plan," existing spectrum holders would be paid to give up their licenses for government auctions, in addition to receiving a portion of the airwave proceeds raised by selling the to rights wireless carriers.The plan would free up 500 megahertz of airwaves, more than doubling the existing spectrum available for wireless carriers, who have demanded more space as their customers increasingly watch videos, check email and update Facebook on high-end smartphones. "The highly valuable spectrum currently allocated for broadcast television is not being used efficiently -- indeed, much is not being used at all," said Julius Genachowski, the Federal Communications Commission's chairman. The U.S. is facing a "looming spectrum crisis," as the popularity of robust devices -- such as Apple's iPhone, Research in Motion's BlackBerry devices and newcomer Google's Android platform -- has driven up the demand for mobile broadband services to power the growing range of data-hungry applications. Some carriers had even blocked these apps, such as Internet calling and television streaming services, fearing that they would further tax their already congested wireless networks. "Our airwaves really are the oxygen of mobile broadband service," said Genachowski. "Without sufficient spectrum, we will starve mobile broadband of the nourishment it needs to thrive." Meanwhile, television stations have only used about half their assigned airwaves in large cities, and even less in smaller regions. "The highly valuable spectrum currently allocated for broadcast television is not being used efficiently -- indeed, much is not being used at all," said Genachowski. "Even in our very largest cities, at most only about 150 megahertz out of 300 megahertz are used." But people familiar with the deal say the FCC's proposal could run into substantial opposition from the broadcast industry, who are already struggling with advertising revenue shifting to the Web, and hesitant to give up their highly-prized airwaves. Analysts say broadcasters such as NBC, CBS, Fox and ABC would likely push for a price that may be too expensive for what the government is willing to pay. In 2008, telecoms paid more than $19 billion in a spectrum auction. Analysts estimate that the rights to the new airwaves, should they be auctioned, could bring in as much as $50 billion.
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