To: Maurice Winn who wrote (4918 ) 11/26/2000 9:11:12 PM From: Eric L Respond to Mqurice,Where's The Spectrum? telecomclick.com "As the Internet migrates out of the personal computer and into wireless Web-enabled devices, spectrum management is becoming increasingly important," said FCC Chairman William E. Kennard after Clinton issued his memorandum. "Indeed, spectrum--or the absence of spectrum, in some cases--is emerging as a major factor for the new economy. That's why it's so important that we elevate spectrum management to a national priority." Winning bids from all spectrum auctions conducted in the history of the U.S. total about $23 billion, about $15 billion of which actually has been deposited in the U.S. Treasury. Meanwhile, in estimating the value of next month's scheduled reauction of C and F Block spectrum, Merrill Lynch has pegged the cumulative price tag at more than $18 billion.Without a spectrum cap--and a change in U.S. auction guidelines that would allow foreign carriers to participate in auctions--bids for unencumbered bandwidth that can be used for 3G services in the U.S. could top $100 billion. "The bands that were identified at the World Radio Conference include our existing first and second generation cellular and PCS services," says Gregory Rohde, head of the National Telecommunications and Information Administration, or NTIA. "And one of the objectives that we've had is to allow for these first and second generation services to evolve into third generation services. We're already starting to see that happen." In addition to the commercial uses of bandwidth, U.S. spectrum issues are complicated by the fact that non-commercial uses are managed by different organizations--the FCC for non-governmental uses and the NTIA for governmental uses, including those involving the military. If successful, the spectrum search should result in an auction that will net a huge payday for the U.S. government in 2002. As large as this potential auction windfall may be, the prices bid at such an auction are expected to pale in comparison to the potential overall impact 3G services could have on the U.S. economy. Long-term job creation and industry growth--all of which generate tax money for the government--are the real prizes. <<
