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July 30th, 2008But why break up a 4.25 Billion dollar party?

Posted by Editor in connectivity, spectrum

After physical wires, the other major way to move information is through the airwaves, a natural resource with enormous potential. But that potential is untapped because of a false scarcity created by bad government policy.

Our current approach is a command and control system dating from the 1920s. The federal government dictates exactly what licensees of the airwaves may do with their part of the spectrum. These Soviet-style rules create waste that is worthy of Brezhnev.

Many “owners” of spectrum either hardly use the stuff or use it in highly inefficient ways. At any given moment, more than 90 percent of the nation’s airwaves are empty.

The solution is to relax the overregulation of the airwaves and allow use of the wasted spaces. Anyone, so long as he or she complies with a few basic rules to avoid interference, could try to build a better Wi-Fi and become a broadband billionaire. These wireless entrepreneurs could one day liberate us from wires, cables and rising prices.

Such technologies would not work perfectly right away, but over time clever entrepreneurs would find a way, if we gave them the chance. The Federal Communications Commission promised this kind of reform nearly a decade ago, but it continues to drag its heels.

In an information economy, the supply and price of bandwidth matters, in the way that oil prices matter: not just for gas stations, but for the whole economy.

And that’s why there is a pressing need to explore all alternative supplies of bandwidth before it is too late.

Not a new one, but still the most wonderfully dangerous idea in telecom. Set the airwaves free.

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  • Jim
    I'm definitely of the opinion that wireless spectrum should have followed patent law a bit more, with multi-year leases rather than the disaster that is copyright law (royalties for pretty much forever)
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