I attended the the CTIA wireless industry’s global show in New Orleans last week. It was a great opportunity to hear from all the leaders in the industry, and to walk the exhibit floor to see the great innovations in the mobile space. Wireless industry leaders from AT&T,... Read The Story...

The FCC Chairman’s former Chief of Staff, Eddie Lazarus, was the guest speaker at an Information and Technology Innovation Foundation (ITIF) event last week. He offered his thoughts on the FCC’s policy agenda, accomplishments, and challenges.

A primary focus of his remarks was on the issue of the recent action by Congress authorizing the FCC to conduct incentive auctions to make more spectrum available. Lazarus spoke about the challenges the agency has in auction design and in its ability to promote competition. I agreed with his point when he said that every company needs more spectrum. He was also asked about competition in the market and what is the right number of providers for a competitive marketplace. It’s a difficult question, and Lazarus responded that it’s less about the number and more about, are there enough companies to drive innovation and investment?

Lazarus was asked how important it is for legislators to be able to predict where technology is headed when drafting new laws — to be able to look into a “crystal ball” and see what’s coming down the road. He said it’s actually more important for legislation and regulation to be nimble and adaptable to changes in the marketplace and innovation. It was interesting to hear his open perspective on these issues, both from a position he held previously within the FCC as well as in his current position outside the agency.

CNN.com had a great series of articles last week on the current and future state of spectrum. The series of articles, written by David Goldman, focus on the capacity crunch. One article of particular interest to me was about the impact of the increased demand for wireless data services — and the effect its having on the price we’re paying for our wireless services. Goldman’s article explains why the spectrum crunch is causing an increase in our wireless bills. I recommend that you check out the series, you can access it here.

There’s an important new study out that offers some historical analysis of spectrum auctions and how they can best be fashioned to benefit the economy and consumers . The study, by Georgetown University’s Center for Business and Public Policy visiting senior policy scholar Anna-Maria Kovacs, analyzed previous spectrum auctions to determine its consumer benefits and overall revenue impact.

Ms. Kovacs closely studied Auction 73, the 700 MHz spectrum auction run in 2008. She concluded that an auction open to all bidders, such as the 2008 Auction 73, can be successful for both competition and for maximizing federal revenue gains. Winning bidders in that auction included both small and larger companies – and that small players actually did well: bidders serving less than 10% of wireless subscribers won 28% of the MHz/POP (per unit of population).

What does this historical analysis mean today? As Congress takes the step to give the FCC the authority to hold incentive auctions to free-up additional spectrum, Ms. Kovacs analysis shows how an auction that is open to all bidders will yield the best results. Her study raises serious concerns about an auction that imposes restrictions on bidders:

“Bottom Line: That an incentive auction that imposes conditions and excludes the largest bidders will reduce proceeds to the Treasury is assured. That it will benefit consumers is uncertain, at best.”

The study clearly shows that an open auction is most beneficial to consumers and the economy.

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Consumer Resources

Below are additional resources to more information about online privacy.

Consumer Guide to Online Privacy (PDF)
What is 4G Wireless Service? (PDF)
Consumer Online Privacy Survey
2008 Online Safety Survey
bNetS@vvy
www.onguardonline.gov
www.ikeepsafe.org/
www.getnetwise.org
www.fosi.org
www.enough.org

Other Organizations

National Caucus and Center on Black Aged:
http://www.ncba-aged.org/

National Consumers League:
http://www.nclnet.org/