Hughesair (Inflection Point)

Retired physician and air taxi operator, science writer and part time assistant professor, these editorials cover a wide range of topics. Mostly non political, mostly true, I write more from a lifetime of experience and from research, more science than convention. Subjects cover medicine, Alaska aviation, economics, technology and an occasional book review. Globalization or Democracy documents the historical roots of Oligarchy, the road to colonialism and tyranny

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Friday, November 30, 2007

FCC's Hidden Tax

"Google-GOOG will apply to participate in FCC Spectrum auction
Google announced that it will apply to participate in the Federal Communications Commission's upcoming auction of wireless spectrum in the 700 megahertz band. As part of the nationally mandated transition to digital television, the 700 MHz spectrum auction -- which begins January 24, 2008 -- will free up spectrum airwaves for more efficient wireless Internet service for consumers. Advocacy by public interest groups and Google earlier this year helped ensure that regardless of which bidders win a key portion of the spectrum up for auction (the so-called "C Block"), they will be required to allow their users to download any software application they want on their mobile device, and to use any mobile devices they would like on that wireless network. The winner must ensure these rights for consumers if the reserve price of $4.6 billion for the C Block is met at auction." :
theflyonthewall.com

Not only will our government auction off the air that we breath, but they will do so with a reserve price of 4.6 billion. When will we learn? Dinosaur economists argue that the only fair way to allocate wireless spectrum is through supply and demand by public auction. Thus claiming government ownership of time space, whilst denying the reality of today's technology. The spectrum is near infinite as is the capacity to pass photons transparently through it. Spread spectrum. smart radio, optic frequencies, very low frequency, and spooky quantum strategies offer an opportunity for infinite sharing. The FCC should limit its interference with science to policing messy interference. detectable by their monitors. All else should be nearly undetectable as mere static in the background floor of thermal noise.

Selling the infinite ether of the universe, however, offers irresistible profit for the bureaucracy and the general fund without it being seen as a federal tax. Yes, Google will succeed in it's bid for surveyed and titled ownership of old TV spectrum, but only Google or ancient Industrial Age telecoms have the money to even bid.

This auction will insure the outrageous price for wireless for the foreseeable future. It will deny the small innovative inventors/physicists, a competitive piece of the action, and it will insure the continued limitation of band width for the most productive tool of our economy.

Arguably free spectrum would yield free information and productivity, (a "free exploitable resource" has historically been the key to explosive growth.) a productivity and growth that would drive our economy at light speed. Myopic leadership fails to see that any boost in the economy will multiply GDP and yield far greater tax revenue without trying to hide it.

How about a clear channel station in Del Rio, Mexico? With free spectrum we are no longer limited by line of sight. An auction reserve of 4.6 billion, what is supply and demand about that approach? The high cost of entry is actively promoted by the telecoms in order to squeeze out the competition or if the technological competitive newcomer succeeds the capital expense leads to the competition's bankruptcy. A cheap efficient technology cannot compete with engineered scarcity and legislated cost.

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