CEA questions NAB ideas on spectrum transfer

 CEA and the CTIA-The Wireless Association responded sharply in separate statements to a broadcaster trade group's attack on the Federal Communications Commission's plan to pay broadcasters who voluntarily allow the transfer of 120MHz of bandwidth for mobile use. The National Association of Broadcasters asserted that the proposal could shut down up to 200 stations. In a statement, CEA said, "Our nation faces a crisis as demand for wireless spectrum will soon outstrip supply. ... Incentive auctions would be a financial windfall for broadcasters, free up the spectrum necessary for the next generation of American innovation to move forward and bring in $33 billion to the U.S. Treasury.

 
From Twice : CEA, CTIA React To NAB Spectrum Study
By TWICE Staff -- TWICE, 7/25/2011

New York - The Consumer Electronics Association (CEA) and CTIA - The Wireless Association each released statements regarding the National Association of Broadcaster's study on spectrum incentive auctions.

From the CEA: "The NAB study sets up and knocks down a purely fictional straw man. The study presumes an unrealistic scenario in which every single existing TV station continues to operate over-the-air. However in the event of incentive spectrum auctions, it is highly likely numerous stations will capitalize on their spectrum assets by exiting the business or sharing resources. 

"More, the NAB study implies that many broadcasters will be forced to auction their spectrum. However, current congressional legislation includes only voluntary incentive auctions and reimbursement expenses for relocation costs.

"Our nation faces a crisis as demand for wireless spectrum will soon outstrip supply. Meanwhile, the number of Americans relying purely on over-the-air TV is less than 10 percent, according to both CEA and Nielsen market research. Incentive auctions would be a financial windfall for broadcasters, free up the spectrum necessary for the next generation of American innovation to move forward and bring in $33 billion to the U.S. Treasury.

"Spectrum auctions would be a win-win-win for the United States. CEA, CTIA - the Wireless Association, the Federal Communications Commission (FCC), the Obama Administration and numerous members of Congress support spectrum incentive auctions. NAB stands alone and is simply trying to protect its business interests."

Chris Guttman-McCabe, VP of CTIA - The Wireless Association, said, "Contrary to the scare tactics that NAB is presenting to consumers and policymakers, reallocating underutilized spectrum will not remove free over-the-air broadcast television. We also want to remind broadcasters of two key points in all of the incentive auction discussions, as well as in each of the legislative discussion drafts. First, participation in the auction is voluntary. Second, repacking costs will be reimbursed. NAB's study confirms that even under their analysis, spectrum can be moved voluntarily to its highest and best use, billions can be raised for the United States Treasury and free over-the-air broadcast services continue.

"Even though we are the most efficient users of spectrum, driving high-speed mobile broadband to 300 million Americans, the U.S. wireless industry needs the ability to purchase more spectrum in order to continue to provide their customers with the best products and services in the world. Since spectrum is a finite resource, it is vital that the U.S. government ensures the highest and best of use. Economists estimate that for every dollar invested in mobile Internet, it will create an additional $7 to $10 for the GDP. This is in addition to the tens of billions of dollars that will be raised at auction. Our members want to help boost our country's economy, but they must have access to more spectrum. This can, and should, be a win-win-win."