Why Congress Should Not Micromanage Incentive Auctions

The White House event on incentive auctions was probably the most sensible public event on the pro-incentive auction side I've attended to date.

While I have had several discussions with Federal Communications Commission (FCC) staff that persuade me that, if Congress gave the FCC generic authority to do voluntary incentive auctions (subject to limitations to protect broadcasters ­ including low-power broadcasters ­ that want to stay in the broadcasting business), they could design a pretty good auction that would get more spectrum out for both licensed and unlicensed broadband access. Unfortunately, just about every public discussion on incentive auctions tends to focus on either a few simplistic talking points (more spectrum=good!) or, worse, has been about trying to persuade members of Congress that spectrum auctions are magical money trees that let you solve the deficit problem without raising taxes (just look at how the 2008 700 MHz auction completely eliminated the federal deficit).

So a pro-incentive auction event that does not make me grit my teeth or put me to sleep is worth celebrating. More importantly, the key take aways bear repeating:

1) Congress should leave the details to the FCC; and

2) Unlicensed spectrum is a big part of promoting broadband and the FCC ought to take the opportunity presented by repacking to expand the available white spaces. Or as Michelle Connolly, former FCC Chief Economist, put it: “”The amount of money gained [at an auction] is less important than the value of reallocation [for new, innovative uses].”