WIRELESS SPECTRUM IS to the 21st century what oil and electricity were to the industrial age: the medium of economic transformation. Spectrum can be used to transmit over-the-air broadcasts or the massive data streams for the smartphones and tablets that have grown exponentially in popularity. But there is only so much spectrum to go around. The government, which owns spectrum and leases it to private entities, must decide how best to allocate this relatively scarce resource.
Federal Communications Commission (FCC) Chairman Julius Genachowski proposes voluntary auctions to make available to wireless carriers a chunk of spectrum currently controlled by over-the-air broadcasters. An added benefit: The federal government could net an estimated $25 billion.
The proposal has triggered understandable pushback from broadcasters, but Mr. Genachowski should, with qualifications, be given the authority to proceed. (The Washington Post Co., which is a member of the National Association of Broadcasters, has interests in broadcast television that could be affected by FCC action.)
So-called voluntary incentive auctions would be just that — voluntary. Broadcasters would be asked to turn in the spectrum they control; some may shutter their businesses, while others may share remaining spectrum with others in their market. Those who agree to participate would be paid either by negotiating an upfront price with the FCC or by collecting a share of auction proceeds. Congress would have to give the FCC authority to conduct such transactions.
Broadcasters say it is unfair to ask them to shoulder the burden when, just two years ago, they handed back 108 megahertz of spectrum during the transition from analog TV to digital TV. They also worry that a voluntary auction could soon turn mandatory if the FCC does not reach its target of 120 megahertz. And they fear that even broadcasters who decline to participate would be adversely affected if they are forced to move to a different channel or lose the ability to reach their entire market.
Free, over-the-air broadcasting remains an important source of news and entertainment, especially for 46 million Americans who rely exclusively on broadcasts. The National Association of Broadcasters estimates that these numbers are growing as households cut cable and satellite services to save money or turn to the Internet to watch movies or television episodes.
This may be true, but the incremental growth cannot compare to that underway with mobile broadband. Congress should provide fair compensation for broadcasters who are hurt by any reshuffling and give the FCC the authority it needs to ensure that the potential of this wireless industry is not choked off by a lack of resources.
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