FCC?s Rosenworcel: Buy spectrum from federal agencies

On November 13, FCC commissioner Jessica Rosenworcel proposed a novel idea in a speech to the Silicon Flatirons Center conference in Washington. Rosenworcel, who has been an FCC commissioner just six months, recommended that federal agencies auction off excess spectrum -- and that the proceeds go directly to the agencies relinquishing the spectrum.

Rosenworcel pointed out that the U.S. need for spectrum is more pressing than elsewhere. "Last year," she said, "U.S. wireless networks operated on average at 80 percent of total capacity. This is the highest utilization of any region in the world."

The reason for the crunch is simple:

"Already, there are more wireless phones in this country than there are people. Roughly half of these are smartphones, which generate 35 times the traffic of traditional wireless phones. Tablet computers generate 121 times the traffic of traditional wireless phones."

She said that the FCC has already directed more than 80 auctions, issuing 36,000 licenses, and raising over $50 billion for the U.S. Treasury. But, she said, we need to identify more spectrum. "But," she asked, "what if we were to financially reward federal authorities for efficient use of their spectrum resource?"

This is indeed the time to attempt something new. Rosenworcel said:

"Agencies across the federal government face funding shortfalls as Congress addresses the looming sequestration deadline. In this context, instead of talking about a crunch, maybe we should try spectral cliff. There may be no better enticement than the possibility of revenue from a spectrum auction to help alleviate the pain of impending budget cuts."

Silicon Flatirons: The Next Ten Years of Spectrum Policy (FCC Commissioner Jessica Rosenworcel speech, Nov. 13, 2012)