The following letter is in response to RCR Editor Bill Maguire’s look at the Federal Communications Commission approach to spectrum auctions and how effectively the public interest is served as a result of competitive bidding.
Dear Mr. Maguire:
As an American living abroad, I read with great interest your Viewpoint column in the Oct. 3 issue of RCR.
I agree with your point that the revenue enhancement aspects of spectrum allocations are being taken too far. A New York Newsday article about six months ago stated a similar concern, arguing that three pioneer’s preference awards were just not enough. The pendulum has certainly swung the other way.
Since neither of us can change the minds of those regulators who have large dollar signs in their eyes, perhaps the big question now is how to benefit from the knowledge that perhaps $40 to $50 billion will be flowing into the U.S. Treasury within a year. Does this mean the dollar will strengthen against the German mark? Does it mean that telecom stocks will soar? Will banks now rush to finance telecom projects? Will lead times from vendors increase with the enormous orders for PCN equipment?
If our regulators in Washington are blind to the medium- and long-range effects of their actions, at least readers should get some ideas on how to benefit from the inevitable. Maybe you would like to address these issues in an upcoming column.
Thanks for your interesting commentary.
Joel Hariton
Luxembourg
