WASHINGTON—A new report says injecting property rights and market forces into spectrum allocations would best foster efficient spectrum use and development of new technologies.
The report, issued by academics and former policymakers affiliated with the Digital Age Communications Act Project, favors property rights based on auction licensing over an approach in which users operate in unlicensed spectrum so long as they do not cause interference to others.
“First, the lack of property rights in such an approach would discourage large private investment in spectrum technology and would slow or hinder innovation in spectrum-based services,” stated a press released issued by The Progress & Freedom Foundation. “Second, without a market mechanism for determining price or the opportunity costs of spectrum usage, it would be difficult to determine the most efficient allocation.”
The report’s authors said options for achieving a market-based spectrum allocation regime include auctioning spectrum with rights to clear incumbents, but with compensation for relocation or ceasing of operations; auctioning spectrum without rights to clear incumbents; leaving the private sector to negotiate transactions to clear incumbents from the auctioned spectrum; and a “Big Bang” auction of unassigned and encumbered spectrum permitting incumbents to repurchase existing rights at no net cost, or receive vouchers.
The group also proposed steps be taken to promote efficiency in government-held spectrum such as public disclosure and congressional monitoring of government spectrum usage, requiring the government to purchase additional spectrum rights as needed at market price, and encouraging the government to purchase complete communications services in place of grants of spectrum.
