Evan Kwerel from the FCC presenting the case for a property-like distribution of spectrum. Spectrum is scarce for many valuable applications: for the foreseeable future, spectrum will be scarce; lack of interference doesn't mean a lack of contention or scarcity; scalability isn't hte end of scarcity; explanding capacity is costly regardless of tech.
Wireless Internet is not the only use for spectrum (Ed: Except that mostly it is — most spectrum applications — voice, video, etc — are subsets of the kinds of applications that can run in an IP network; of course, there's radar and radio astronomy and such, but we're usually not talking about this.).
Commons model doesn't provide coverage (Ed: Except in Manhattan, where my laptop can find a WiFi signal more easily than my phone can find a signal) or mobility.
The fact that you can accomodate many users doesn't mean you can accomodate them well — meshes of increased depth are slow and high latency (Ed: The Internet is a mesh of high depth).
Markets are useful for managing scarcity — that's basic economics. Prices efficiently ration use, exclusivity provides appropriate incentives to invest in costly infrastructure to reduce scarcity.
The FCC will have to provide a smooth transition from central planning to property rights and commons model.
We propose that any spectrum holder who wants property-like rights in spectrum (the ride to subdivide and resell) would have to put their spectrum on the auction block and buy it. They don't have to bid to buy their own spectrum, but if they don't put it up for sale, they won't get the property-like right. In this model ("The Big Bang Auction"), incumbents would be protected from interference.
Incumbents who buy back their licenses would get to keep the amount they bid for auction. (Ed: This must be why economists get the big bucks, because this seems completely bizarre to me — partake in this empty ritual and you can gain additional flexibility in the spectrum you got for free from the US public and have all accountability to the public removed).
This will quickly and efficiently transition to a property rights model — putting 438MHz of spectrum between 322 MHz and 3.1GHz into private hands to be used flexibly.
