[BC] Spectrum

[DANA PUOPOLO]

Let me explain something....

Congress and the President are both BOUGHT AND PAID FOR by big business.
They could care two S**TS about any of us. Spectrum auctions exist to make BIG
business BIGGER! Why do you think the $$ are so high? To keep the little guy
OUT!!!

So far, the federal treasury has received about 20 billion $$ from ALL the
spectrum auctions to date. After all the TV spectrum is auctioned off along
with the rest of the broadcast AM/FM spectrum, the total take will be well
under 75 billion $$. This is how much is cost to wage the Iraq war for about
THREE MONTHS!!

Think about that - we are selling off ALL THE COMMERCIALLY USABLE SPECTRUM IN
TOTAL  for the next 25 YEARS will keep the war in IRAQ going for THREE
MONTHS!!!

Right now, our deficit is pushing against TEN TRILLION DOLLARS. ONE trillion
$$ is 1000 BILLION DOLLARS.

In other words, our deficit is perilously close to 10,000 BILLION DOLLARS!

50 billion dollars is equal to  75/10,000 = .75 or .75% of our outstanding
deficit. 

We're selling ALL our commercially useful spectrum for the next 25 years for
an amount under 1% of our deficit!

Hmmm...I wonder what the deficit will be in 25 years? 1000 trillion??

What number is there after a trillon anyway? A quadrillion dollars?

Finally, consider that it took the United States over 200 years for the
deficit to reach ONE trillion dollars.  During this time, we waged at least a
dozen wars (including two world wars) and went through the great depression.

It's only going to take a bit over twenty years for the deficit to go from one
trillion to TEN TRILLION!

I hope this puts the fallacy of our govt. and spectrum auctions in
perspective.

-D


------ Original Message ------
Received: 
From: "Harold Hallikainen" <harold at hallikainen.com>
To: "Broadcast Radio Mailing List" <broadcast at radiolists.net>
Subject: Re: [BC] Spectrum "looting in progress" update

Thanks Bill! I agree with the writer, but disagree on the details. Through
the auction of spectrum leases, there would not be a one time "once in a
lifetime" pile of cash, but, instead, a steady income to the public for
use of the public resource. Congress could then include that as income in
its budget and pay ongoing expenses with it, including public
broadcasting. Economically, a sale and a lease should be equivalent.
Putting the funds from a sale into a trust fund which would then generate
income would be equivalent to the income of the leases. But, congress,
instead, treats this revenue from a one time sale (I call it an asset
trade, they've traded the asset of the spectrum for asset of cash, but
have not really generated any income) as income to balance the federal
budget. Next year, when they have no more spectrum to sell, they try to
find something else to sell off. It's equivalent to burning down your
house to stay warm. It's a bad idea. Spectrum leases would keep the asset
in public hands and generate public benefit (lease fees) from the private
use of that spectrum. The income would be ongoing. They'd get a check
every year from here on out for that use of the spectrum. That, indeed, IS
income that could be used to balance ongoing expenses.

Note that I do not advocate complete privitization of the spectrum
(through leases), but also suggest "public parks" of the spectrum where
users have non-exclusive use of the spectrum. This includes your garage
door opener, cordless phone, wifi network, and license free broadcasting
with approved equipment that ensures equal access to the public park.

I dunno. It make sense to me... But apparently not to congress.

For anyone interested in more on this, see
http://sujan.hallikainen.org/ijclp/ .

Thanks for the note, Bill! And welcome to 2006!

Harold




>
> Harold, you've been talking spectrum lease vs. sell since the 80's ...
> here's a slightly different viewpoint in today's Rocky Mountain News....
>
> Speakout: Let analog sell-off benefit public
>
> By Willard D. "Wick" Rowland Jr.
> January 1, 2006
>
> The Rocky Mountain News editorial of Dec. 26, "Unnecessary gift to free TV
> watchers," correctly critiques the recent federal budget provision of a
> $1.5
> billion set-top converter-box subsidy for analog TV set owners at the time
> of the final conversion to digital broadcasting in 2009. And the News ends
> with an important observation, "Surely Congress could have found a better
> use for the money." It certainly could have - Congress should place the
> funds in a public media trust fund.
>
> The current plans for auctioning off the analog spectrum provide for no
> lasting public service legacy.
>
> The airwaves are public property, yet they are being increasingly
> privatized
> and, in the process, the proceeds are being largely wasted.
>
> Since the beginning of broadcasting 80 years ago Congress has permitted
> private, commercial interests to exploit the spectrum for extraordinary
> profit and little public return. The convertor box vouchers would continue
> that pattern by providing a subsidy for the consumer electronics industry,
> commercial broadcasting and cable television.
>
> The rest of the proceeds will disappear into the great maw of the federal
> deficit.
>
> How much better if they were set aside as an investment in trust for
> public
> service.
>
> Most of the media and telecommunications interests have been contemplating
> only how to profit from the high-definition, "pretty pictures" aspects of
> digital telecasting.
>
> Little commercial media and manufacturing industry thought has gone into
> the
> question of improved, socially useful content.
>
> Only public broadcasting has been planning for the extensive
> noncommercial,
> educational and public service development of digital telecasting. Yet it
> remains seriously underfunded for that challenge.
>
> It's long since time to substantially increase the federal contribution to
> public radio and television, more along the lines of the commitments in
> all
> other advanced democracies; and also through a means that is separate from
> the politically vulnerable annual appropriations process.
>
> The auction of this public spectrum resource provides a once-in-a-century
> opportunity for establishing a significant and enduring public dividend.
> Let's not squander it.
>
> Willard D. "Wick" Rowland Jr. is the president and CEO of Colorado Public
> Television, KBDI-Channel 12, and is the dean and professor emeritus at the
> University of Colorado's School of Journalism and Mass Communication.
>
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