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Thursday, December 15, 2011

Voluntary Auction Legislation Passes House

12-14-2011

Yesterday, the House passed the spectrum legislation as part of a package that includes a payroll tax holiday. It's unclear how this legislation will end up, many democrats are saying this package will likely fail in the Senate and the President has vowed to veto the payroll tax package if it remains in its current form. The spectrum legislation could raise $16 billion for the Treasury from the auctions. FCC Chairman Julius Genachowski said ?Incentive auction authority, which has broad bipartisan support, needs to become law. Unless we free up new spectrum for mobile broadband, the looming spectrum crunch risks throttling our mobile economy and frustrating mobile consumers."

The House legislation would authorize the FCC to conduct voluntary incentive auctions as recommended in the FCC?s National Broadband Plan. It also provides funding for a public safety broadband network for the nation?s first responders, which was another recommendation of the National Broadband Plan. The NAB "strongly" supports the spectrum language in the House bill.

The bill was not perfect for Genachowski.  "Several provisions of the House bill would tie the agency?s hands in ways that could be counterproductive, reducing economic value and hindering innovation and investment.  One important example is the legislation?s seeming limitation on the Commission?s ability to accommodate new technologies, including those that use unlicensed spectrum, like super WiFi or machine-to-machine Internet connected devices.  I encourage Congress to leave no doubt that the FCC can continue its policies to promote unlicensed spectrum use alongside licensed uses."

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