Pols want to counter auction outcome with….another auction!

Even a great idea can turn into an impractical nightmare when implement by politicians. Now crying foul about the outcome of the recent 700MHz auction that they did nothing to change when they might have, the pols have yet another ill conceived and unworkable idea to improve broadband competition. Something in the politicos gene pool seems to tell them that they can obtain a different result from the same action. Having yet another auction is like pouring gasoline on a fire.

Voicing disappointment that familiar large wireless carriers scooped up the most significant share of airwaves in a recently concluded auction, Rep. Anna Eshoo (D-Calif.) on Thursday introduced the Wireless Internet Nationwide for Families Act, which would direct the Federal Communications Commission to auction off a band of wireless spectrum between 2,155 megahertz and 2,180MHz that currently lies fallow and impose detailed rules on the winning bidder. Rep. Ed Markey, the Massachusetts Democrat who leads a House telecommunications and Internet panel, and Rep. Chris Cannon, a Utah Republican, have signed on as co-sponsors.

Under the proposed measure, aside from offering the free broadband network, the network operator would have to:
• begin offering “always-on” broadband service within two years of receiving the license
• offer a service free of subscription fees, airtime, usage or other charges to consumers and “authorized public safety users”
• ensure the service offers at least 200 kilobits per second transmission speeds in at least one direction (a far cry from the 768 megabits per second speeds associated with most entry-level DSL lines)
• outfit the free service with “a technology protection measure or measures that protect underage users from accessing obscene or indecent material through such service”
• publish royalty-free standards so that others can develop and deploy equipment that can operate on the network (Cnet)

The ludicrous details of this proposal demonstrates how clearly out of touch the current crop of representatives in DC really are. Offering another auction is not going to change anything. Expecting a serious newcomer to arrive on the scene and pay big for the right to provide free service is unworkable. It’s San Francisco muni Wifi revisited only worse. Plus, 200KBPS is not broadband and is essentially useless in the rich media world that we live in today.

I have a better proposal for this spectrum. Have a lottery. Charge a set fee for a license that is both reasonable and proper for market size. To enter the lottery you must not currently offer service in a market area you have applied to serve nor may you hold license to more than say 5% of the spectrum anywhere in the USA. You will have a deployment plan and you will have a strict time line on how quickly you will deploy. You will surrender the spectrum if you do not deploy in a set time and a new lottery will be held. You may not accept investments from the duopoly. Community groups and individuals are welcome to put their names in the hat.