WASHINGTON, June 25 /PRNewswire/ -- In comments to the Federal
Communications Commission (FCC) last week, Coleman Bazelon and Dorothy
Robyn, principals of The Brattle Group, estimated that an auction of TV
"white space" spectrum could generate anywhere from $9.9 billion to $24.4
billion in revenue. The white space refers to the unused portions of the TV
band that will become available after next year's digital TV transition.
This spectrum is particularly desirable because it is useful for mobile
broadband services. Similarly desirable frequencies recently sold by the
FCC in the 700 MHz band generated $19 billion.
The comments, also authored by telecommunications consultant Charles L.
Jackson, provided an update to findings contained in a report that Jackson
and Robyn submitted in 2007 in a separate FCC proceeding. In their 2007
report, Robyn and Jackson argued that the FCC should license and auction
the rights to the white space rather than make the spectrum available for
unlicensed use, as the Commission had tentatively proposed. They showed
that, compared to an unlicensed approach, licensing would free up twice as
much spectrum and encourage more investment, especially in rural broadband.
In the comments presented last week, Jackson, Robyn, and Bazelon
updated the calculations of the quantity of white space used in the 2007
report, based on more recent information on the number and location of
digital TV stations that will operate after the transition to all digital
in 2009. They also refined Jackson and Robyn's 2007 "ballpark" estimate of
the value of the white space based on the price of the E Block of the Lower
700 MHz band, which was recently sold in the FCC's Auction 73.
Jackson, Robyn, and Bazelon estimated the value of the white space
under four different scenarios. Under the least conservative scenario,
which includes all 49 channels in the TV band and does not require that
adjacent channels be protected from potential interference, the white space
would generate an estimated $24.4 billion in auction revenue. Under the
most conservative scenario, which excludes certain channels and requires a
greater level of interference protection, an auction of white space would
generate an estimated $9.9 billion.
"Recent developments in the spectrum license markets make the white
space more valuable than ever," said Bazelon. "Consequently, the price tag
for allocating the white space to unlicensed users has also gone up," he
added.
The full comments of Charles L. Jackson, Dorothy Robyn, and Coleman
Bazelon can be found at http://www.brattle.com.
The Brattle Group provides consulting services and expert testimony in
economics and finance to corporations, law firms, and public agencies
worldwide. We are active in a wide range of areas including antitrust and
competition, valuation and damages, and regulation and planning in network
industries. For more information please visit http://www.brattle.com.
SOURCE The Brattle Group
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Related links:
http://www.brattle.com
CONTACT:
Laura A. Waters of The Brattle Group,
+1-617-864-7900, laura.waters@brattle.com
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