An Offer They Can't Refuse: Spectrum Reallocation that can Benefit Consumers, Broadcasters & the Mobile Broadband Sector

Consider two relatively uncontroversial statements: (1) America needs more spectrum to feed its growing appetite for mobile broadband (2) Traditional television broadcasters are facing unprecedented marketplace competition and serious financial turmoil that threatens their long-term viability Could Congress or the FCC help broker a deal by buying out broadcasters and then re-auctioning a portion of that spectrum for mobile broadband services? Blair Levin, Executive Director of the FCC's Omnibus Broadband Initiative, suggested broadcasters might want to consider returning their spectrum in exchange for a share in the billions of dollars coming from the auction of the spectrum to the wireless industry – a relevant pitch considering Levin is in charge of formulating the FCC's plan to boost broadband deployment. Meanwhile a report crafted by a working group deployed by The Progress & Freedom Foundation on new spectrum policy offers five "Transition Options for Encumbered Spectrum," – including two variants similar to that of Levin's: 1) An FCC-driven spectrum auction that would grant winners the right to clear incumbents from the spectrum they have purchased, by paying relocation costs or paying the incumbent to cease operations. 2) A "Big Bang" auction with unassigned and encumbered spectrum: To either permit incumbents to repurchase their existing rights at no net cost or permit the FCC to repackage and auction the spectrum clear of any encumbrance. However, it is worth noting broadcasters bought spectrum from previous owners, invested in their stations, and built relationships in their communities. It is essential that broadcasters be willing partners in a reallocation plan and see clear benefits for themselves, their shareholders, and the viewing public, under just compensation. Another spectrum auction becomes an attractive target for cash-starved legislators, but Congress must be willing to let the FCC make the deal generous enough that broadcasters are willing to listen.