FCC's choice: Lock down innovation or unleash competition

[Commentary] On November 4, 2008, as millions of Americans cast votes in a historic presidential election, the Federal Communications Commission (FCC) held a historic vote on the future of the Internet.

Unlike the partisan national election, the FCC vote was unanimous. The five commissioners -- three Republicans and two Democrats -- voted to open unused TV spectrum, otherwise known as “white spaces” (TVWS), for unlicensed use to deliver super-fast broadband Wi-Fi. TVWS offers speeds far superior to the capabilities of existing unlicensed spectrum, and high-tech firms, venture capital investors and rural broadband advocates alike rejoiced at the news from the Commission. But for rural Americans stuck in dial-up or satellite purgatory, TVWS isn’t just “far superior” to the existing unlicensed spectrum -- it is a godsend.

But after years of litigation from dominant incumbents, bureaucratic red tape and congressional meddling created uncertainty that has slowed TVWS development and stifled innovation and economic growth. By contrast, a cornucopia of wireless marvels arose from earlier releases of unlicensed spectrum, from remote controls, keyless entry and baby monitors to Wi-Fi and Bluetooth, contributing billions to the US economy each year.

But now, yet another uncertainty looms. The FCC will hold spectrum auctions in 2015 to help meet the growing demand from wireless devices, but deficit hawks in Congress have joined with the big wireless companies to pressure the FCC to include TVWS in the auctions, greatly reducing or eliminating new unlicensed spectrum. If they get their way, the lion’s share of our airwaves will be locked up for exclusive use by big corporations, handicapping competitors for decades to come.

Without new unlicensed spectrum, tomorrow’s innovators and entrepreneurs must cut a deal with the spectrum oligarchs to bring new products and services to market. And rural communities will be robbed of the chance to meet their broadband needs through nonprofit TVWS networks in the self-help tradition of rural electric co-ops.

[Bowen is the founder of the nonprofit Mountain Area Information Network]