First Reaction to the National Broadband Plan

Updated on March 16th, 2010

The FCC released its National Broadband Plan today. Given the scope and breadth of this unprecedented plan, it would be impossible to cover it all in a single post. For now, I discuss only my initial reaction.

The broadband team should be commended for its hard work in putting the plan together. I can’t help being impressed by the extensive data and vast number of recommendations made in the plan. It appears to be comprehensive in its scope and ambitious in its agenda.

And there is a lot of good news here. The plan contains a number of recommendations on issues that are particularly divisive and long overdue for action. For example, the plan recommends reform of the universal service fund to support both fixed and mobile broadband through separate funds. The plan also recommends reform of the intercarrier compensation regime by eliminating per-minute charges and shifting cost recovery to the universal service fund. These two reforms alone would go a long way toward rationalizing communications policy in this country. It’s good to see that the broadband team was willing to take on even the toughest issues. (See pages 140-52.)

I’m also pleased to see that the plan recognizes the critical role wireless broadband plays in today’s society. The plans commitment to making additional spectrum available for mobile broadband services is especially welcome. Specifically, the plan recommends that 500 MHz of spectrum be made available in the next decade, with 300 MHz being made available in the next five years. Among other things, the plan recommends that the FCC initiate a rulemaking to reallocate 120 MHz of spectrum from television broadcasters, accelerate terrestrial use of 90 MHz of mobile satellite spectrum, and auction up to 60 MHz of AWS spectrum (including 20 MHz of federal spectrum in the 1755-1780 MHz band). (See pages 73-96.)

I’m impressed by the FCC’s “beta release” of a spectrum dashboard to provide user-friendly access to information about spectrum bands and licenses. The dashboard improves the FCC’s spectrum databases by allowing users to browse the table of allocations for licensed spectrum and search FCC license records using a map-based interface. Users can also search for FCC licensees by their “common names” (e.g., “Verizon Wireless”) rather than by their licensing subsidiary (e.g., “Cellco Partnership”), which should enhance the opportunity for secondary market transactions.

Although my initial reaction to the plan includes much that is positive, the plan contains some potentially troubling recommendations as well. For example, the plan recommends that the FCC “move forward promptly in the open proceeding on data roaming.” If implemented well, data roaming could prove to be a successful policy. However, if a data roaming requirement were implemented without regard to spectrum holdings (i.e., without a “home roaming exception”), such regulation would actually discourage infrastructure-based competition.

There is a lot more to this plan than the limited observations above. Stay tuned for additional analysis in the coming weeks as I look at various elements of the plan in more depth.


      

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