Tuesday, March 14, 2006

The Broadband Spectrum


Recommendation 1: Congress should eliminate local franchising regulations,
which serve as a barrier to new entry.
Recommendation 2: Congress and the Federal Communications Commission
should make more spectrum available to private parties and allow them to use it
or trade the right to use it, so that spectrum will go to its highest-valued uses.

The bottom line is that investment in broadband should be as easy as possible.
Regulations that primarily protect incumbents or serve as barriers to entry should be

An excellent idea from some high-minded, noted Economists. The trouble lay in the fact it will not impact the Telecommunications industry much, if at all. Management policy at these Companies dictate they enter only non-contested areas--mostly new Construction areas. This is all new-Line service, and the most expensive. Guess What? Telecommunication Costs reflect the high Cost for new Construction, and the competition is for who can get to the highest Price for service the quickest.

What Congress needs to do is the great unspoken fear of the Telecommunications industry. This is the statement in law that Telecommunications cannot provide only partial service. It would make it mandatory for Service Providers to provide all services--Telephone, TV, and Internet. The unitary Construction Cost would lower Service fees, and it would generate actual competition for business--not based upon highest Cost ratios. What is needed is real Change of the landscape for the industry. lgl

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