University of Louisiana Spectrum for Wireless Broadband Case Study Paper Read Case spectrum for wireless broadband” and answer questions 1 and 4. both ques

University of Louisiana Spectrum for Wireless Broadband Case Study Paper Read Case spectrum for wireless broadband” and answer questions 1 and 4. both questions must fit on one page. Times new Roman 12pt font. Read case “Google in China” and answer questions 3,4,and 5. both questions must fit on one page. Times new Roman 12pt font. reimbursement
its estimate of
rors and stated
Chapter 14
PART III
• Law and Markets 415
stimate. Other
C’s estimates
stimates were
leaths was far
he CDC were
life, whereas
INTEGRATIVE CASE
Spectrum for Wireless Broadband: Old Media versus New Media
ath rates from
as the likeli
d’s on an
of the iPhone and by tablets such as the iPad. The growth in use
Mobile communication was revolutionized by the introduction
of these devices to connect to the Internet and the downloading
of videos, movies, and games greatly accelerated the demand
for wireless broadband capacity. Streaming video, for example,
mating demand were quickly obsolete, and companies in the
would not load. Mobile communications companies were reluc-
industry became concerned about dropped calls and pages that
tant to price based on usage, so there was little to limit the use
of wireless capacity. Capacity could be increased by providing
Communications Commission (FCC) had allocated 108 MHz to
mobile communications from the “white spaces” between chan-
nels when television broadcasting switched from analog to digital
and Verizon to rollout 4G networks.
transmission. This had allowed wireless carriers such as AT&T
ty address
ng led by
McDonald’s
e obesity-
t pledge
capacity for wireless broadband, and in 2009 Congress passed
a law directing the FCC to develop a plan to make broadband
accessible nationwide. In March 2010 the FCC released a
regardless
archers to
keep the re-
ssible link?
How active
voluntarily sell their spectrum in an auction conducted by the
FCC.90 This request was made to induce broadcasters and other
licensees to sell voluntarily their underutilized spectrum at a
price to be determined in an auction. Under current law the pro-
ceeds of any FCC auction must go to the U.S. Treasury and
hence cannot be paid to the licensee.
President Obama had also pledged to make broadband
available nationwide. An estimated one-third of Americans
either did not have access to or chose not to have high-speed
Internet service. The FCC planned to expand service in rural
America and could use the Universal Service Fund that is
funded by surcharges on telephone service and provides subsi-
dies of $8 billion for rural telephone service and Internet con-
nections to schools and libraries. Funds from the auction could
also be used to expand wireless broadband services. The FCC
was also considering a “digital literacy corps” to help unwired
Americans learn online skills. 91
The government was also concerned about spectrum
In addition, government policymakers sought to create a
nationwide, interoperable broadband network for public safety
and personal security. Wireless carriers provided some capac-
ity for first responders, but multimedia communication was
National Broadband Plan that sought a 500 MHz increase in generally limited. Funding from the network could come from
spectrum for wireless broadband with 120 MHz coming from the auction.
spectrum currently held by television broadcasters. 87 The 120
“We’re in full battle mode to protect broadcasters from
MHz would represent a 22 percent increase in the capacity for being forced to give up spectrum,” said Gordon H. Smith the
wireless broadband. The FCC determined that the spectrum to president of the National Association of Broadcasters.92 He
be made available for wireless broadband would be most valu- also said lack of spectrum was only a problem in New York
able if the spectrum were contiguous, but this would require and Los Angeles. Smith said, “Why should people in Kentucky
moving some TV stations to different channels. The spectrum have their local stations’ signal potentially downgraded so
held by TV broadcasters was ideal for wireless broadband urbanites in Manhattan can have a faster download of the app
telling them where the nearest spa is located?r93 Steve Largent,
because signals could penetrate buildings and travel long
president of the Cellular Telephone Industries Association
which renamed itself The Wireless Association, responded by
distances.
FCC chairman Julius Genachowski explained the goal of
accusing the NAB of “desperate and inaccurate tactics.
the National Broadcast Plan, “Broadband will be the indispen-
Former NAB president Edward Fritts warned about “an
entire telecommunications industry out to minimize or dismiss
the invaluable contributions that local broadcasters provide
??
t likely to
ed with
,88
ties.
sible platform to assure American competitiveness, ongoing
job creation and innovation, and will affect nearly every aspect
of American’s lives at home, at work, and in their communi-
He added, “History teaches us that nations that lead
technological revolutions reap enormous rewards. We can lead
the revolution in wired and wireless broadband. But the
President Barack Obama directed the
every day, across America for the public good. Theirs is a cam-
paign characterized by sharp elbows, enormous war chests and
a public notion that if it computes, it must be good.”95 Dennis
Wharton, vice president of the NAB said, “You can’t take that
much spectrum from broadcasters and not have devastating
9989
moment to act is now.
In his 2011 budget President Obama called upon
National Telecommunications and Information Administration
to identify spectrum controlled by the government that could be
redeployed within 5 years for wireless broadband.
Congress to pass legislation authorizing “voluntary incentive
auctions” in which holders of spectrum licenses could
90A voluntary incentive auction could be implemented as a “double auction” in
which buyers decide how much spectrum to bid for and what price to bid and
simultaneously sellers determine how much spectrum to offer and what price
to accept.
91 New York Times, March 13, 2010.
92 New York Times, April 22, 2011.
93 Los Angeles Times, April 13, 2011.
94New York Times, April 22, 2011.
95Daily Variety, April 12, 2011.
The European Union was considering setting aside 800 MHz for mobile
broadband, some of which would come from television broadcasters.
New York Times, March 13, 2010.
TECHWEB, March 17, 2010.
416 Part III · Government and Markets
consequences for delivery of mobile digital television, HDTV
countries.
and other innovative services.”96
Genachowski pledged, “No broadcaster will be forced to
offer up spectrum for auction.” The FCC, however, was
believed to be planning to repack the broadcast spectrum to
provide a contiguous band for wireless broadband.
Genachowski explained that “voluntary can’t mean undermin-
uncertain.
»,97
reallocated spectrum conflicted with the spectrum used in
then reallocate the spectrum. The broadcasters would
could simply not renew the licenses when they expired.
Broadcast licenses had fixed durations, and the li
all likelihood sue the FCC on the grounds that they had a
should be renewed as they had been in the past.
lated any of the conditions of their licenses and that the lo
of reclaiming the licenses would at a minimum be lengthye
Broadcasters argued that the wireless carriers were
efficiently using the spectrum they already had and that
had alternatives to increase the capacity of their spectron
Smith said the issue is “more investment in towers and the
huge swaths of spectrum that wireless carriers have alread
structure and receiving standards that maximize the use de
In May 2011 the NAB released a study
concluded that the FCC had not taken full account of measure
that wireless carriers could take to increase the capacity of the
spectrum they already held. The study pointed to increased ve
of femtocells, better receiver standards, and spectrum
The House Committee on Energy and Commerce beya
the process of drafting legislation as did the Senate Commerce
been allocated.”103
9,99
104
sharing
ing the potential effectiveness of an auction by giving every
broadcaster a new and unprecedented right to keep their exact
Alan Frank, CEO of Post-Newsweek
channel location.
Stations, commented, “I had the honor of serving in the Army,
and I understand ‘voluntary. »»98 The FCC was believed to be
willing to cover the cost of moving channels and had given
assurances that no station would be moved from VHF to UHF.
The NAB said in a statement, “Going forward, we believe poli-
cymakers have an obligation to maintain digital TV services
currently provided by broadcasters and to allow free TV view-
ers to benefit from DTV video innovations. NAB will oppose
government-mandated signal strength degradations or limita-
tions, and new spectrum taxes that threaten the future of free
and local broadcasting.
Gary Shapiro, vice president of the Consumer Electronics
Association (CEA), said, “Broadcasters are gearing up for a
huge political battle, but the reality is that fewer people are
watching over-the-air television, and we’re fighting for our
future of innovation.
„100
In April 2011 the CEA released a
nationwide survey that found, “By a six-to-one margin,
Americans believe that underutilized spectrum—the nation’s
airwaves used for everything from local broadcast television to
wireless devices-should be auctioned off to raise money to
lower the federal deficit, The survey also indicated that
fewer than 10 percent of Americans got breaking news from
over-the-air broadcasts.
Television stations were currently allocated 300 MHz of
spectrum, but most of it was unused. In markets with popula-
tions less than 1 million only 36 MHz was used on average, and
in the largest markets 150 MHz was used. For example, chan-
102
nels 31–51 were lightly used. The broadcasters said that the
unused spectrum was needed to reduce interference.
Approximately 10–15 percent of the population used over-the-
air broadcasts, and the number had been declining steadily. In
addition, the NAB warned that cities like Detroit that border
Canada or Mexico could lose over-the-air television if the
Committee. 1
„101
….
sb
Preparation Questions
1. As an Apple or Verizon executive, what legislation would
you propose to the House and Senate committees to
advance the reallocation of spectrum to wireless broad-
band? Make sure you both deal with the concerns raised by
opponents of the reallocation and build broad support for
the reallocation.
2. If you propose authorizing a voluntary incentive auction,
would
you impose any restrictions, such as minimum or
maximum prices or a specified sharing rule for broadcast
ers that offer spectrum?
3. What contingency, if any, would you provide if broadcast
ers do not make sufficient amounts of spectrum available!
4.As a broadcaster what strategy would you use to address
possible congressional legislation and FCC rule making?
Copyright © 2011 by David P. Baron. All rights reserved. Reprinted with permission.
om
bias
TO
99,
96 Washington Post, January 20, 2011.
97 New York Times, April 22, 2011.
98 Daily Variety, April 12, 2011.
www.adweek.com, November 30, 2010.
100 Washington Post, January 20, 2011.
101 CEA Press Release, April 11, 2011.
102 Washington Post, January 20, 2011.
104 http://spectrum
103 Los Angeles Times, April 13, 2011

Purchase answer to see full
attachment