More Government Intervention Needed Says FCC Chairman
The Consumer Electronics Show (“CES”) was held last week in Las Vegas. So the tech industry showed up with all its gadgets, smartphones and tablets and whatnot, and all the promises of 4G and mobile computing. So we’ve got this new, relatively speaking, and burgeoning wireless industry. Isn’t this what economists and critics and politicians and enthusiasts predicted and clamored for, American inventiveness and exceptional-ism to come to the rescue and reverse the global economic downslide. Not so fast my friends. As Kenneth Corbin reports in his article for Datamation entitled FCC Boss Takes Spectrum Shortfall Warning to CES, The FCC Chairman, Julius Genachowski, announced plans at the CES for his agency to intervene into the wireless industry and forcibly reallocate bandwidth among the major players. Corbin explains the situation succinctly in his article:
“Federal Communications Commission Chairman Julius Genachowski was talking about spectrum, the invisible airwaves that power the wireless networks that are coming under increasing strain from the surge in mobile computing.”
It comes as no surprise to the industry that the possibilities and wonders of the new wave in mobile computing are dependent upon sufficient supply and access to the air waves. However, as Corbin reports, The FCC has plans to conduct auctions of the air waves licenses currently owned by the TV broadcasters to the wireless vendors. Maybe not a bad idea, but along with incentives to do so, the FCC would impose fees, fines, and penalties in order to ensure the government’s idea of the proper allocation of the Spectrum to be implemented. So is this truly voluntary.
Once again, the age old question must be addressed …. Who is better equipped and suited to put into practice and maintain a sound business strategy, the Free Market or the Government. You decide.