1. Spectrum Policy TC 310 May 29, 2008

2. Why Spectrum Still Matters Former Use of Spectrum  Radio and Television Current Use  Radio, Telephony, Internet Mobility makes more sense

3. Legacies of Regulation Government quickly regulates spectrum  “Hackers”  Titanic Rationale  Interference  Scarcity Challenge of rationales  Better tech, weaker arguments

4. Allocating Spectrum FCC given this task  1943 Communications Act Divides spectrum for specific uses Role of National Telecommunications and Information Administration Role of International Telecom Union Interactions make reforms difficult

5. Assigning Spectrum FCC assigns spectrum to a licensee Methods (initial only)‏  Comparative Hearing  Lotteries  Auctions Strengths and Weaknesses

6. Challenging Spectrum Allocation Rationale revisited  Underutilization of spectrum  Limited business plans  Low incentive to innovate Fighting Incumbents  Government (NTIA), Military  Radio Incumbents  Television Incumbents  Ex. : Low Power FM on guard band

7. Property Rights Model Treat spectrum like all property Free market sells, leases, buys Government  Define property rights  Enforce contracts Maximal efficiency, no limits on use

8. Examples of Property Rights Auctions instead of hearings  Not completely free though Personal Communications Service  PCS allows any mobile comm  No technology limitations  Cannot be leased Secondary Markets Order (2003)‏  FCC lifts some anti-leasing rules  Still great FCC oversight

9. Problems Vacating Incumbents  Upper 700 MHz  Resistance in other areas Enriching incumbents  Transition avoided due to unfair wealth Fairness  Some paid, some did not Public “Good Content” (PEG)‏

10. Commons Approach Any and all use as commons Improvements in tech weaken interference  Spread Spectrum (ranged frequencies)‏  Cognitive radio (microchip enabled)‏ Underlay transmission Low power White spaces Guard Band CB radio an example

11. Problems Tragedy of the Commons  Use it up before its gone  Ramp up power, interference war Forces investment in interference reduction Significant regulation necessary to avoid tragedy

12. Influence on FCC Creates Spectrum Policy Task Force  Leans towards property rights  Seeks some balance between two  Underlay devices free  Interference temperature Minimal interference, not zero Bands or spectrum Incentive to innovate

13. Participation Time Which works better for you, a commons approach or a property rights approach? Is the current system really that bad? Are there concepts in spectrum that seem familiar from other contexts? Do you have concerns leaving spectrum to completely free markets? Is current spectrum policy inconsistent with Telecom Act?