Slide 16/9/2005 Question of Spectrum@ Marroquín Univ LIGHTING UP THE SPECTRUM: Wireless...
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Transcript of Slide 16/9/2005 Question of Spectrum@ Marroquín Univ LIGHTING UP THE SPECTRUM: Wireless...
6/9/2005 Question of Spectrum@ Marroquín Univ Slide 1
LIGHTING UP THE SPECTRUM: Wireless Communications in Developed and Developing
Economies
Gerald R. FaulhaberSpectrum Policy in Guatemala and Latin America
Francisco Marroquín UniversityGuatemala City, Guatemala
June 9, 2005
6/9/2005 Question of Spectrum@ Marroquín Univ Slide 2
Evolution of Spectrum Policy
• Wireless one of the great technologies to emerge in the 20th century
• But it’s potential for mass communication swept it up in the political turmoil of that century– Totalitarian regimes monopolized it as a means of
control– Democratic regimes did much the same– In the US, commercial interests held sway; post-
Depression anti-market sentiment ensured continued government management of spectrum
6/9/2005 Question of Spectrum@ Marroquín Univ Slide 3
Innovation• Promise of wireless largely unrealized;
innovation limited to large politically connected players
• Broadcasters, telephone companies
• Policy driven by well-intentioned but clueless regulators (encouraged by wonky academics)
– UHF experiment, suppression of cable TV, suppression of both terrestrial and satellite competitors to gov’t broadcasters, etc.
• Result: horribly wasteful use of spectrum, artificial scarcity
6/9/2005 Question of Spectrum@ Marroquín Univ Slide 4
Glacial Change• …in the last quarter of century
– West Europeans permit private broadcasters• ITV, Canal• Rupert Murdoch’s BSkyB
– New Zealand and US experiment with auctions for new mobile telephony service
• A wild success
– More unlicensed; also a success
• Finally, the promise of wireless begins to emerge in the new millennium
6/9/2005 Question of Spectrum@ Marroquín Univ Slide 5
The Pace of Change Quickens
• Wireless now the focus of great innovation
• And some are recognizing that regulation is the problem, not the solution…including the FCC
• How can we unlock the power of spectrum?– Property rights rather than “permission”
• Guatemala leads the way; yes, it can be done!
• Britain and the EU also moving quickly
• …while US dithers
– Commons (unlicensed) model a competitive view
6/9/2005 Question of Spectrum@ Marroquín Univ Slide 6
Which is the Better Model?• How Best to Light Up Spectrum?
– Establish property rights, encourage markets and let the private sector do what it does best
• Control for interference in the property right
• Gov’t can use spectrum for itself or as a commons, but as a license owner, not the Big Boss
– Establish a commons, with gov’t as the governance mechanism• Continued regulation likely to have the same outcome as the last 80 years:
gross inefficiency, rent seeking, favoring incumbents and those proficient at lobbying
– For centuries, property rights regimes have demonstrated their power for growth in both developed and developing economies.
• Requires independent judiciary, minimum corruption, competitive private sector