Private broadcasters grew large and profitable under this arrangement. But
over time, as their advertising revenues soared, their public-interest obligations
declined. In the 1980s, the FCC dropped the Fairness Doctrine, which required
broadcasters to air both sides of controversial issues. Educational programming
also waned. In the 1990s the spread of cell phones created huge new demand
for airwaves. Instead of giving frequencies to cell phone companies for free,
Congress wisely chose to auction them, raising billions of dollars for the
federal treasury. Broadcasters, however, lobbied hard for more free spectrum,
and in 1996 Congress gave it to them, ostensibly for digital TV. This was
the $70 billion giveaway I described earlier. Today, digital technology makes
it possible for “smart” receivers to pick out only the signals
they need. Signal interference thus is, or soon could be, a thing of the
past — which makes exclusive licenses unnecessary. The airwaves could
be an open access commons with virtually no capacity limits, a possibility
that makes broadcasters, phone, and cable companies extremely anxious.
Some broadcasters have another idea. They want to privatize the airwaves,
with ownership assigned to them. Under this plan, the free licenses they
received for digital TV would become permanent entitlements usable for any
purpose. Broadcasters could then sell their entitlements to cell phone companies
and pocket the windfall. The big winners would be General Electric (NBC),
Disney (ABC), and Rupert Murdoch (Fox). Other beneficiaries would include
Pat Robertson (Christian Broadcasting Network) and Lowell “Bud” Paxson
(Pax TV). When a reporter asked Paxson why he should receive millions of
dollars for selling the public’s airwaves, he replied: “I was
a farmer and I got lucky. Now people want to build a mall on my farm. God
bless America.”
If Congress treated the airwaves as a common asset, it would lease most
of them at market rates for limited terms to the highest bidders. The billions
of dollars thus raised could buy free airtime for political candidates, fund
noncommercial radio and TV, and help sustain the arts.
Alternatively, Congress could turn the airwaves into an open access
commons like roads and streets. Using technologies like wi-fi (wireless
fidelity),
everyone could enjoy high-speed Internet access for almost nothing.
As of early 2006, nearly 150 U.S. cities were deploying or planning
public wi-fi
networks. These efforts are hampered by the fact that the frequencies
allotted to wi-fi don’t travel as far, or penetrate buildings
as well, as do the frequencies given to broadcasters. A bill to
open unused
TV channels
for wi-fi has been introduced by a group of senators, but it
faces stiff opposition from broadcasters, telephone, and cable
companies. ... read
the whole chapter