HOARDING AWAY
Good article in the Wall Street Journal this morning covering Microsoft co-founder and billionaire Paul Allen's declared interest in bidding in the upcoming 700 Mhz wireless broadband auctions, via Vulcan, his investment company:
"Tim Sanders, an analyst with market researcher Maravedis Inc., said Vulcan may be acquiring and holding the spectrum for cable operator Charter Communications Inc., in which Mr. Allen bought a controlling stake in 1998.
Keeping the spectrum in the hands of a private entity like Vulcan could save Charter money on taxes, Mr. Sanders said. In addition, he said, it could reduce the amount of information publicly traded Charter is required to divulge about what it might be doing with those assets."
Here's the bit though that feels increasingly archaic, not just in the context of Paul Allen's interest, but broader wireless status quo in the U.S.:
"Amassing spectrum is a venerable tradition," Mr. Sanders said. "There are tons of spectrum in the U.S. just sitting there waiting for somebody to do something with it. Mostly it is in the hands of big companies. In the cellular frequencies, it is very well utilized and nearing capacity, but in other spectrum ranges it is barely deployed."
Archaic because selling "public airwaves" to the highest bidder seemed to make sense when technologies that enabled innovative wireless services, evolved at a glacial pace. It certainly feels very obsolete when technologies to provide services are evolving at a much rapid pace. Public policy needs to shift to a more "use it or lose it" focus going forward, for all wireless auctions and for all bidders.
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