The Federal Communications Commission is actually considering paying broadcasters to relieve the strain on mobile network caused by smartphones. The said move would actually allow broadcasters to vacate some of their airwaves that could alleviate network strain caused by surging use of smartphones such as iPhones and more.
Presently, the regulators are carefully studying the compensation system, which they hope would become a larger effort to improve access to high-speed connectivity.
As what FCC Chairman Julius Genachowski said last October, he warned of a “looming spectrum crisis” that would give threat to the United States mobile communications. And now, his staff is also outlining ways to make additional spectrum available. On the other end, the plan may also propose using revenue from airwave auctions to pay existing users to exit airwaves.
Due to the clogged networks, the agency is also considering one option – and that is to compensate incumbent users to vacate, perhaps by receiving a share of the proceeds, subject to congressional approval. After all, we know that there is a spectrum crunch, and we are just trying to come up with options.
Meanwhile, the government is also looking for ways to cope as consumers step up the usage of mobile handsets including Apple’s iPhone, RIMM BlackBerrt and other devices running the Adroid operating System developed by Google. Because these data use results will obviously clogged networks and dropped calls for companies such as AT&T.
Typically though, the government keeps proceeds from airwave auctions. Two recent big auctions alone generated some 34 billion dollars and new auctions could possibly raise tens of billions. However, there is no guaranteee that Congress will approve the move.
But broadcasters might also be reluctant. Although they are excited about the new opportunities afforded to them, they have no interest in cashing out based on a speculative promise from the FCC.
The move seems good… because not doing anything might be a costly option.