Be Wary Of FCC's Cash-For-Spectrum Plan

[Commentary] The Federal Communications Commission has created a big stir by proposing that broadcast spectrum be re-purposed for mobile broadband and suggesting that broadcasters might be compensated for vacating the spectrum. Broadcasters need to come up with a framework for analyzing the situation and responding to the opportunities and threats presented. The questions broadcasters are asking are the right ones. The answers will be a long time in the making, but this primer offers some starting points. The bottom line is that transition payments, if any, will come many years from now and are unlikely to be substantial compared to the enterprise value of most leading television stations. Hane offers these questions and some answers: 1) This came out of left field. Why, and why now? 2) Is there really a shortage of spectrum for wireless broadband service? 3) Why the television spectrum? 4) How much could a TV station get for the spectrum? 5) How would a reclamation process work? How long would it take? 6) Is the broadcast spectrum really underutilized? Should it really be reallocated and auctioned for wireless broadband? 7) Is there anything good about this for broadcasters?