The U.S. experience demonstrates that spectrum auctions, when...
The U.S. experience demonstrates that spectrum auctions, when done right, are a successful mechanism for maximizing the use of spectrum, FCC Commissioner Ajit Pai said in a speech Monday to the IX International Regulatory Workshop in Cartagena De Indias, Colombia.…
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Pai released his written remarks Tuesday (http://bit.ly/W7gxUx). “Auctions are more successful when they are kept simple, transparent, and market-driven,” he said. “That means setting clear rules in advance and sticking with them. That means avoiding onerous conditions on particular spectrum. That means giving everyone a fair opportunity to bid. These are the best ways to promote network construction, to raise money for the treasury, and to give consumers the benefits of innovative new services.” Pai also said flexible use policies and a robust secondary market have been critical to the rollout of wireless. The FCC is committed to reviewing deals in the transfer of spectrum from one company to another within 180 days of applications being filed, he said. “This is a good thing. By providing procedural certainty, the FCC has enabled spectrum to flow more freely to its highest value use.” The FCC also allows licensees to sell off part of their holdings, Pai noted. “We have found that these secondary market policies have encouraged spectrum efficiency and reduced transaction costs,” he said. “Indeed, there have been thousands of secondary-market transactions involving mobile broadband licenses over the past several years.” The FCC has also authorized local experiments to examine the aftereffects of the IP transition, he noted. “We are going to see what happens when aging infrastructure is turned off,” he said. “These tests will give us valuable data. And we will then use that data to make a successful national transition to all-IP networks. Once that happens, companies will be able to focus their investments exclusively on high-speed networks.”