Privatization Issues | |
Benefits of Selling Radio Waves |
Privatizing the remaining electromagnetic spectrum would increase competition
and lower the cost of telecommunications for consumers, according to a new
Reason Foundation analysis by telecommunications attorney David Colton.
Under the current system, says Colton, the FCC attempts to centrally plan
spectrum uses by "zoning," allocating large bands of frequencies
for a single use. Today, digital technologies use wide bands of spectrum,
but do not require exclusive access. Thus reserving a large block of spectrum
for one type of service, such as UHF television, is wasteful. For example,
a single UHF channel in Los Angeles would be worth over $1 billion if it
could be used for cellular phone service.
Colton recommends deregulating the existing market, allowing current spectrum
holders to use their part of the spectrum without restrictions, then granting
fee simple title to current license holders, with auctions where there are
competing applications. The spectrum could then be privately managed and
disputes regarding signal interference could be privately arbitrated.
Source: David Colton, "Spectrum Privatization: Removing the Barriers
to Telecommunications Competition," Policy Study No. 208, July 1996,
Reason Foundation, 3415 S. Sepulveda Blvd., Suite 400, Los Angeles, CA 90034,
(310) 391-2245.
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