More Market Mechanisms, in Moderation (M⁴)

Spectrum scarcity is a debilitating affliction. Today, the US faces a scarcity that is severely exacerbated by our spectrum management policies. Technology has changed dramatically, and policy must keep pace. I commend the Federal Communications Commission for initiating this public debate. Policies that encourage users to put spectrum to its most valuable use can make scarcity more tolerable. To alleviate the scarcity, we must find new methods to allow and encourage efficient spectrum sharing; exclusivity can lead to inefficiency. Today’s technology offers many ways to gain the efficiencies of sharing without unacceptable interference. The Commission should expand use of market-based mechanisms, and the Commission should insure the availability of an unlicensed spectrum “commons.” Taking either one of these approaches to a simplistic extreme would be counterproductive, so the Commission should make judicious use of both. There is no substitute for an effective regulator.