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Ars Technica Reports on J.H. Snider's Spectrum Working Paper

Charting the $480 Billion U.S. Spectrum Giveaway
July 19, 2007

Critics of US spectrum policy will have plenty of ammunition for their howitzers after reading the new working paper (PDF) from J.H. Snider of the New America Foundation. Snider heads up the Wireless Future Program at New America, and his paper offers an inside look at the sometimes-dirty world of spectrum lobbying, which Snider characterizes as responsible for a $480 billion giveaway from the public treasury.

The giveaway in question comes after Congress passed legislation in 1993 requiring the FCC to hold auctions for future spectrum licenses, a move that was itself prompted by a massive giveaway of prime spectrum in the late 1980s. Using the high end of his estimate (which ranges from $140 to $480 billion), Snider observes that the giveaway in question amounted to "more than 90 percent of the value of spectrum usage rights [the government] has assigned from 1993 through the present."

The giveaway that Snider's talking about isn't a massive grant of free spectrum to corporate interests; instead, it's something much more subtle and far more difficult for the public to understand. To understand why Snider considers this a "giveaway," let's first look at the difference between the amount of money the government has actually received for licenses since 1993 and the amount of money that such licenses are worth...

For the complete article, please visit the Ars Technica website.

For more information on the working paper event, please click here.



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