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The FCC Spectrum Auction: A Missed Opportunity

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Results of the FCC Spectrum Auction
The Federal Communications Commission has completed its auction of a prized portion of the public airwaves. Did the auction of the so-called 700-megahertz spectrum serve the public interest?

In a positive first step toward wireless innovation, licensing conditions on the newly available spectrum will require any device, handset or software application to work on the new network. In fact, this "open devices" requirement should be part of all of our wireless networks.

But the bottom line is that the auction failed to produce a much-needed competitor to the phone and cable giants. Verizon and AT&T – the auction’s big winners – are already dominant providers of high-speed Internet access in the United States. Their winning bids leave slim prospects for genuine Internet competition via a wireless "third pipe."

U.S. Internet users still face a broadband duopoly where nearly 99 percent of all residential connections are provided by the cable or phone companies. The auction's failure to bring a new competitor into the market means that America’s Internet future will look a lot like its past: slower Internet speeds for prices that are far higher than what people pay in Europe and Asia.

The Mobile Web on Hold
The popularity of the iPhone gives us a limited glimpse of the potential of a mobile Internet. Imagine a time when people are able to connect to high-speed Internet wherever they are and without any content restrictions.

The technology is already available -- and so are the airwaves that could connect people on the go. But the giant incumbents would rather erect more toll booths and roadblocks than let us have a truly open Internet in our pockets. Sadly, our bureaucrats and elected officials seem content to let them have their way.

With the auction news, we lost a valuable chance to take the mobile Web to the next level and do something really innovative with our last, best spectrum.

What's Next
With the auction over, it’s now up to Congress to address the urgent need for a national broadband policy to put our digital future back on track. A national plan would protect Internet freedom and foster competition by bringing new providers into the marketplace, driving economic growth and innovation, and bringing universal, affordable broadband access to all Americans.

Currently, there’s great promise in the vast portions of the broadcast TV spectrum going unused because of outdated regulations. In some places, as much as 70 percent of the public airwaves lie fallow. But these "white spaces" could be used to bring high-speed Internet service to millions by opening up the spectrum for "unlicensed" use by a new generation of devices.

It’s up to us – the American public – to keep the pressure on lawmakers to push for more openness and innovation, not just via this new spectrum but over all of our wireless networks.

Decisions made now will shape the future of the Internet. The stakes for consumers couldn’t be higher.

The broadcasting group The Association for Maximum Service Television (MSTV) is spreading misinformation about FCC testing of white space devices. The organization's "fact sheet" is available here.

Read about how MSTV Stands for Misinformation.

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