FCC May Pay Broadcasters for Airwaves

The Federal Communications Commission of FCC is currently drawing up a plan to pay broadcasters in the cell phone industry to vacate some of their airwaves. Many people are now using smart phones such as the iPhone and Blackberries to download data and with this new amount of use they are negatively affecting high speed internet. The FCC plan on sending this bill through congress, where they will pay broadcasters to not use their airwaves. However many of these broadcasters seem skeptical as they believe that they have an extremely bright future with the new technology developing in things such as mobile digital television.

The FCC’s plan will go to congress in March in hopes that it is passed and they can attempt to improve high speed internet and the service of some cell phone companies. There is no guarantee that this bill will be passed in Congress, seeing that some of these broadcasting companies are some of the largest companies in the world, and would stand to possibly lose tons of money in the process. Technology is constantly changing, and these broadcasters have found a way to move with technology and offer their consumers new and technologically advanced products using the resources that they already have in their airwaves. Consumers always want something new and improved, and these broadcasters stand to make a great deal of money if their current ideas and technology pan out. The FCC are offering them a stipend for these airwaves, yes; but that stipend does not compare to the potential profits that these broadcasters as well as phone producers such as Apple (iPhone) and Research in Motion (Blackberry) stand to make in the future with their advanced technology.

I believe that it would be very beneficial if the broadcasters would sell some of their airwaves to the FCC because it would benefit some consumers, who still rely heavily on the use of high speed internet. Yet I do see the broadcasters arguments as they have a very powerful network of consumers and with the technology that they are creating, they will only continue to make ample amounts of money. If a company sees a chance for profits, the way that these broadcasters do with the creation of mobile digital television then they will not back away from the potential profits in order to help anther sector. Mobile digital television could be a cash cow for these broadcasters, as many consumers especially sports fans would like the chance to watch television on the go in a device that fits easily into their pockets. The government stipend that these broadcasters would receive for their airwaves would not compare to the profits that these companies stand to make if the development of mobile digital television is a success. If some service providers such as AT&T are dropping calls because of the amount of data downloads to smart phones; is it really the data downloads causing this problem or is it the service providers fault for having a weak network?

http://www.businessweek.com/technology/content/feb2010/tc20100210_185317.htm