Good grief Ron, shame on you for joining the Cargo Cultists. Shame! Shame!! Shame!!! Shame!!!! That's a 4-Shame, 4-exclamation mark cry of dismay.
I have never seen such communist socialist collectivist kleptocratic tendentious mob-rule hogwash in my life [and I am old and have seen a lot - though I'm prone to exaggeration].
To suggest some uneducated obese J6P on welfare who wouldn't be able to keep himself alive in a Papua New Guinea forest without a supermarket or Big Mac shop, SUV factory and the whole panoply of products which swarms of intelligent creative individuals around the world have produced over centuries, should be handed the profits of that creativity is Osamaland Madness.
Please tell me you are joking. I have predicted that most people won't realize it but they are actually Ted Kaczynski and Osama bin Laden supporters and they will only gradually understand that they are. But I won't digress down that avenue.
Actually, it was ME and others who created the value in the C-block spectrum by funding and inventing the technology which enabled Allen Salmasi and the Nextwave shareholders [including QUALCOMM] to bid so much for spectrum. I am one of those who should enjoy the profits from the creation of CDMA, which includes the increased value of the spectrum.
It is the people who created the value who should get the benefit of the creation. Their customers get the value from using those creations. It is an exchange of value. A voluntary association between buyer and seller.
Because the spectrum used is a commonly accessible media and it requires governments to protect property rights, the best way to manage that medium is by auction.
But once property has been transferred and a property right created by the government, which was done at auction and confirmed by the judiciary, the government has lost control of that property. That is an extremely important aspect of the success of US Enterprise; property rights. Cargo cult cultures based on tribalism will always be poor because it is not in anyone's interests to produce anything of value other than for their immediate needs.
QUALCOMM did create the value by enabling 20 conversations in spectrum where only one could be conducted in analogue or 3 could be conducted in TDMA. But, QUALCOMM was not able to charge the full value of their creation because when they needed to license companies to use their creation, they couldn't prove such capacity and they had little money and they had many technical problems to resolve. So, they charged only a small royalty to get CDMA going and make it attractive to mobile equipment manufacturers and service providers.
By being stuck in that position, they had forfeited their property rights to those licensees. That's a shame, but that's how property rights go. If you enter a voluntary contract, and undersell something, that's too bad. The property right has been transferred.
The same applies to C-block spectrum. Because the market was unproven and CDMA was still developing, the auction prices were low. Nearly everyone [I am the only person I saw who thought Nextwave had got a bargain] thought Nextwave had gone nuts and bid way too much. The government transferred the property right by conducting that auction. The courts confirmed that property right transfer.
When that property turned out to have huge value, because of the huge expansion of the mobile market, the money flooding into it from subscribers and the widespread use of CDMA which enables service providers to squeeze a lot of people into a little spectrum, Nextwave turned out to have bought a bargain.
So, not only do they own that bargain because the USA is predicated on property rights [and I will sell ALL my assets in the USA and dump the USA into the dustbin of history as soon as private property rights are turned to collective ownership] Allen Salmasi himself was also instrumental in the actual creation of CDMA while working at QUALCOMM.
Property rights can be subtle. But property is everything.
Okay, I shouldn't say the FCC did nothing and that Congress did nothing. What the government did was create a register and enforcement of property rights. They created an auction system and provide management on a long term basis. Over a century, they have provided a trustworthy property-right respecting place to invest in, for people around the world. People around the world recognize the security of their property in the USA and that's why we send our hard-earned money to companies in the USA. Our own kleptocracies are less attractive [to some extent - though of course there is a balance].
The FCC, Congress, Judiciary, Senate, USS Enterprise etc should be funded by the profits of those who were sold the spectrum and from the proceeds of the auctions. This money is needed to protect the property right of those who paid for the property right. That is what happens now and that is good. Osama, Omar and Osamaland are finding now that property rights in the USA will be defended.
So, the two main points here are:
Nextwave has a property right.
QUALCOMM created the value in that property right and Allen Salmasi was instrumental in that creation while at QUALCOMM and risked a lot of capital by bidding for the spectrum.
So, there isn't really a windfall - dumb nature produces windfalls of wealth such as sudden beachings of whales for dinner. There was a huge value created by QUALCOMM's CDMA and that value isn't a windfall. It was created by QUALCOMM's employees. Luckily for those squabbling over the spectrum value, QUALCOMM undercharged and left $$billions on the table. It is unseemly to see greedy kleptocrats grabbing for property. Fortunately, the USA has a fairly independent property-respecting judiciary who understand the value of a legal system and respect from property rights.
Sadly, I think that value is fading from the USA and people don't understand what has driven the value in the USA. The Californian power crisis was straight out of the Kremlin centrally-planned economy manuals, for example. Few in California understand that and certainly J6P wouldn't have a clue.
If there is one person who I think created the value it is me. I should get the profits of my creation. I figured out that coding mobile phone signals would hugely boost capacity and that it could be done with the modern ASICs [this was back in 1989]. I found [in August 1991] a bunch of people who agreed with the idea and what's more, were actually doing it [but they needed money to fund it]. So I bought a property right in the company using ALL of my hard-earned money over a lifetime of work and gave them more money as needed.
I would not have done that if I thought my hard-earned savings would be stolen by some J6P in an SUV. As soon as I see them reaching their greedy ignorant paws out for my property, they won't see me for dust.
The USA economy is not the largest economy in the world. The world's economy is the largest economy in the world. The USA is just a part of the world's economy. The USA will go down the gurgler faster than the British Empire dwindled as soon as the USA loses sight of property rights, individual freedom, rule of law and that good stuff. The USA has already eroded freedoms and property rights to a large extent, but is still better than most places in most ways.
The USA needs to be very careful.
Well, that's my daily diatribe.
Please Ron, abandon the Klutzy Kremlin Kleptocratic [KKK] rule of the proletariat ideas before it's too late.
The 'reauction' of C-block should have been declared ultra vires [legal jargon for, "What the hell did they think they were doing having an auction of somebody else's property?"].
Mqurice |
