[BC] PICN and FCC Rules

[Harold Hallikainen]

> At 12:09 PM 6/13/2006, Harold Hallikainen wrote
>>This also calls into question the whole concept of "public interest." As
>> I
>>recall, the Commission grants ALL radio licenses subject to the "public
>>interest and necessity." This includes cellphone licensees and all other
>>licensed users of the electromagnetic spectrum. Only broadcasters have a
>>"public interest obligation" that extends beyond what the market demands
>>(such as the PIF, children's television limits, lowest unit rates, etc.).
>>The justification for the public interest obligation on broadcasters has
>>been justified by saying that the public needs to be compensated for the
>>use of the public resource (the electromagnetic spectrum). This is a
>>barter transaction where each side thinks they're overpaying.
>
>          Harold,
>
>          What is the status of frequencies that have
>          been "bought" at auction? Is the license
>          really a "grant" or is it a "purchase" for
>          which the purchaser has an expectation
>          of renewal, based on ownership of the frequency?
>


The license is for a fixed term and specifically disclaims any right to
the spectrum beyone the term of the license. However the statute also
calls for a renewal expectancy if certain conditions are met (typically
"build out" on cellular systems and stuff like that). So, it's ALMOST a
purchase of the spectrum, but not quite. When you sell an asset, you're
doing "asset trading" (debit cash, credit spectrum asset) and not really
generating any income. However, Congress uses the cash from this asset
trade to "balance the budget." They can really only cover expenses with
income, not sale of assets. I liken it to burning your house down to stay
warm. Eventually you're going to be cold.

Harold


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