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.

The sub-header of the editorial points to heart of the problem: “The government wants to pick the winners and losers before the bidding begins.” This would be quite unfortunate. It’s important for all carriers to be able to participate equally in the auction. Consumers rely on their carriers for better service and coverage, and obtaining more spectrum will help carriers build the networks that serve these customers.

First, a panel addressed spectrum reallocation issues and launched into a heated debate. Blair Levin, Senior Fellow at the Aspen Institute — and primary architect of the FCC’s National Broadband Plan — wants Congress to move swiftly to approve simple legislation to authorize the spectrum incentive auctions. He spoke passionately about the looming spectrum exhaust and pressed for actions to be taken. Levin said all that’s needed is a one-line bill. National Association of Broadcaster’s representative Chris Ornelas is concerned about the impact of the reallocation on consumers who still rely on over-the-air broadcast television. Walter McCormick (USTA) spoke about how spectrum is part of a complete broadband network, with minorities increasingly connecting via mobile broadband.

FCC Commissioner’s Clyburn and McDowell also spoke at the conference about spectrum. Commissioner McDowell referred to the serious situation with the spectrum crunch and that the auction policies should be as flexible as possible. He also mentioned other ways to relieve some of the spectrum crunch, such as unlicensed use of airwaves.

It seems that the spectrum issues are now front and center at every telecom forum — and for good reason. With the ever-growing demand for mobile data devices and services, the spectrum crunch is becoming a reality. The policy debates at forum’s such as these held at the MMTC event help us all to better understand spectrum allocation and auction issues.

Commissioner Brill’s opening statement focused on the importance for consumers to be able to trust that their information will be secure when they are engaging in the online world, an issue I wholeheartedly agree with. Brill also discussed how the FTC is working to help facilitate consumer trust by emphasizing several principles: privacy by design and Do Not Track, and more transparency (consumers knowing what information about themselves is collected, so that they can correct it).

The first panel of experts which included Ari Schwartz, with the US Department of Commerce, as well as representatives from Intel and Comcast, addressed an interesting question: Can you take strong steps to ensure national security and still protect individual privacy? All agreed that the two are not incompatible and that privacy and security are two sides of the same coin. The second panel offered an opportunity for representatives from several companies, AT&T, Facebook, MasterCard, and eBay, to discuss their privacy and security products and services – a panel I found interesting, as well.

It was an stimulating and timely program, addressing important issues of concern for consumers engaging in the online world today: protecting privacy and security.

I recently had the chance to spend some time at the Consumer Electronics Show and I have to say – this is an amazing time to work in the wireless sector.

From mobile heart and glucose monitors to connected cars to networked refrigerators that can update your shopping list when someone finishes the milk – we’re seeing huge growth in the area of connected devices. Not only are the devices talking to us, they are increasingly talking to each other and helping streamline our everyday lives.

Mobile Future took a closer look back at the wireless growth and opportunities in our 2011 Mobile Year in Review. This animated video includes some amazing statistics and shows how quickly the mobile space is evolving.

It’s also a great reminder that the U.S. mobile sector is leading the wireless revolution both in technology and competition.

The U.S. significantly leads the world in 4G subscribers, which is great news for consumers, the mobile innovation community and the nation’s economy. The American wireless market is also highly competitive with two-thirds of us able to choose from among five or more wireless providers and a broad array of service choices.

Last week, Rob Shapiro and Kevin Hassett released a paper with NDN looking at the employment growth in the transition from 2G to 3G networks and conservatively found that since 2007, in the face of extremely difficult economic times, the wireless sector added 1.5 million jobs and they project similar growth with the transition to 4G.

Much of this is being fueled by the next-generation of devices and what we can do with them. But this increased usage and growth lead to some significant policy and engineering questions.

Spectrum is the ‘invisible infrastructure’ that makes all wireless connectivity possible, but we’re running out of it fast, especially as we see an explosion in 4G devices and the benefits of high-speed services that come with them.

Here are some staggering statistics:
• U.S. mobile networks are already running at 80% capacity compared to the world average of 65%.
• According to the FCC, by next year, we will exceed existing capacity on U.S. wireless networks.
• In 2015, tablets will generate as much traffic as the entire global mobile network of 2010.
• The iPhone 4S consumes twice as much data as the 4G version and on average three times as much data as the iPhone 3G due to data-hungry features such as the voice-based assistant software Siri.

So where do we go from here and what does it mean for consumers?

A spectrum crunch will mean more than longer downloads and more dropped calls. It will mean missed opportunities, and slower innovation, and slower job growth.

There’s broad agreement that we’re facing a serious problem and legislation before Congress would establish voluntary spectrum auctions to repurpose broadcast spectrum for mobile. That’s one part of the solution. Freeing up unused government spectrum is another.

We are hopeful that Congress will pass spectrum legislation soon, but in a sector that’s moving significantly faster than policymakers, the clock is ticking very loudly.

More information on spectrum and what it means for wireless is available in Mobile Future’s Spectrum Resource Center.

What does this mean for the tech policy community? These devices all connect to the wireless network, and as I’ve discussed before, more consumers adopting these great devices results in the anticipated spectrum crunch becoming a reality. Bottom line: we need more spectrum to meet consumers growing demand and usage!

First speaker Rick Kaplan, FCC’s Wireless Bureau Chief, spoke about the state of federal legislation for incentive auctions. The FCC wants to maintain authority to manage the auctions and is concerned that Congress will bind its hands. Rick said the FCC doesn’t envision blocking any providers from the auction, but at the same time the FCC needs the flexibility to manage the auctions. The FCC’s auction management is one issue of concern in Congress.

After Kaplan’s remarks, three other panelists spoke about these issues. Gary Shapiro, Consumer Elecronic Association’s (CEA) President and CEO, spoke about the myriad wireless devices that use an incredible amount of data, and these products assume there will be sufficient spectrum to support their use – pointing out that this is a flawed assumption. I completely agree with Shapiro’s remarks. It’s so exciting to see all the great new devices that are out in the marketplace — and soon to be available — and consumers are adopting them at a rapid pace. We need to make sure there is sufficient spectrum to support this explosion of devices and services.

Walter McCormick, USTA’s President and CEO, made the important point that over 99% of wireless services connect to a wired network and it’s critical to continue to support investment in fiber networks. Fred Campbell, President and CEO of Wireless Communications Association International (WCAI) also spoke about the rapid pace of consumer adoption of wireless technologies. Finally, Grant Seiffert, Telecommunications Industry Association’s (TIA) President, called on Congress to move forward on passing legislation for incentive auctions for spectrum.

It was an interesting panel discussion, highlighting the important need for more spectrum to support the growing demand of our wireless services and devices, as well providing some opportunity to discuss issues related to how the auctions might unfold

There’s always a good amount of floor space dedicated to entertainment: 3D TV (with and without glasses), video cameras smaller than our cell phones, video games that get us moving and seem so real. While these new offerings certainly are fun, I’m always more interested in the technology that improves and enhances our lives. This year, I’ve seen new and improved devices for smart homes, smart cars, smart phones, and other mobile devices. The greatest technological advancement I have seen is how all these devices are seemingly now integrated, allowing the power of each device to build on the next.

Additionally, the tablet is still a hot item at CES, with improvements on size and technology. It will be interesting to see how consumers react to the tablet market. Will they want the smaller tablet that is easier to carry and, with the phone features, appears to be more like a wireless phone? Or will they want a larger tablet with a more detailed screen that offers different benefits? It will be interesting to see where this market goes.

Well, I’m going back for another spin of the floor at CES today, to view what other technology consumer trends are coming for this year.

Honig provides several points to support the conclusion that wireless broadband actually can help to close the digital divide. A Pew survey referenced in his blog supports the fact that African Americans and Hispanics have high rates of connectivity to the Internet via their wireless devices and are active users of mobile services. As Honig notes, wireless continues to offer the best opportunity for broadband access for minority communities.

The piece goes on to point out that consumers can use a wireless device to access the Internet for education, health, and information services. Also, today wireless broadband devices are not limited to smartphones, and small business increasingly rely on wireless service. I also agree that investment in the build out of faster wireless broadband networks is a top priority. Companies have been making the extraordinary investment to build out an increasing faster network, bringing better services to more consumers.

For more information on this subject, the blog references some great surveys and studies that have been done on this subject — so check it out here.