By Allen Tsai | Tue Mar 16, 2010 5:51 am |
The plan from the Federal Communications Commission addresses the urgent need for more bandwidth to drive new smartphones capable of streaming television and voice calls.The agency wants to persuade broadcasters -- including NBC, Fox, ABC and CBS, who hold spectrum licenses estimated to be worth $50 billion -- to give up their airwaves for wireless use. In return, it will seek permission from Congress to auction off the spectrum and pay the television stations. "We've certainly heard from a number of broadcasters who have told us that this is a promising direction and they are getting ready to roll up their sleeves with us," said Julius Genachowski, the FCC Chairman. "We've developed a plan that is a real win-win for all involved. We've every expectation it will work." But some analysts say the deal may not appeal to broadcasters unless they are offered a very large cut of the proceeds -- a move that could spark a public outcry since wireless auction payments typically go to the U.S. Treasury. In addition, many broadcasters are worried that the plan may not be as voluntary as originally promised. The FCC said it was leaving open the option of taking action, should the deal fall through, of adding new government fee for use of airwaves or requiring television stations share their channels "on a voluntary or involuntary basis." The strategy is designed to shift airwaves from lesser used television stations to carriers like AT&T and Verizon, who are under pressure to increase their network capacity due to surging demand for wireless broadband. The plan is also part of a larger Obama proposal to make existing high-speed broadband connections at least 10 times faster in the next decade and beyond. The administration is concerned that U.S. -- the country that invented the Internet -- is dangerously falling behind other nations that have speedier broadband connections at lower prices.
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