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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 172.98

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Jan 2 9:30 AM EST

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To: Ramsey Su who started this subject	11/22/2000 2:05:40 AM
From: Caxton Rhodes	Read Replies (1) of 197073

The FCC Pushes for a Secondary Market in Spectrum By John Filar Atwood The FCC has floated its plan to promote the development of secondary markets for spectrum and is seeking public comments on if, and how, the plan can work. "I am convinced that we can create a secondary market in wireless bandwidth just as there is an emerging commodity market for wireline bandwidth," FCC Chairman William Kennard said. The plan is the agency's effort to handle the growing spectrum supply/demand imbalance and to head off a potential spectrum drought. It is designed to make sure that all the spectrum the FCC has licensed is being fully used. "A robust secondary market for spectrum will provide incentives for licensees to make unused spectrum capacity available in the marketplace," Mr. Kennard said. "Spectrum will flow more freely among users in response to economic demand." The Commission proposed that most wireless radio licensees with exclusive rights to their assigned spectrum be allowed to lease their spectrum usage rights to third parties without waiting for FCC approval. The agency also offered several proposals on how service rules should be applied so as to promote spectrum leasing without undermining the principles of the rules. Commissioner Gloria Tristani expressed some reservations about this aspect of the proposals. "I am concerned that relaxation of our service rules, under the guise of furthering secondary markets, could invite opportunities to circumvent enforcement of our licensing responsibilities and public interest requirements," she said. She also noted that the development of a secondary market raises many legal and policy issues, and vowed to look closely at public comments on the agency's obligation to review radio spectrum license transfers under section 310(d) of the Communications Act. Commissioner Susan Ness supports the plan, but noted that the viability of a secondary market for spectrum will largely depend upon three factors: whether the FCC can establish the appropriate legal framework, whether the industry can produce equipment that takes advantage of the proposed flexibility without causing undue interference and whether the market can develop a mechanism for identifying and distributing available spectrum. thetelecommanalyst.com

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