In February 2012, Congress authorized the Commission to conduct the world's first incentive auctions to meet the growing demand for flexible spectrum. Spectrum is the public airwaves which Americans use every day – the invisible infrastructure that supports all forms of wireless communication. Without it, you can't make cell phone calls, download digital textbooks, download an app on your tablet, e-mail on your smartphone, or listen to the radio. It is a precious and finite resource.
Incentive auctions give current licensees, such as over-the-air television broadcasters, the opportunity to contribute unused spectrum for auction in exchange for a portion of the proceeds.
Today, the number of active mobile phones in the United States exceeds the number of people. With the proliferation of smart devices, America's demand for data-driven wireless services has increased exponentially, and with it the need to create innovative solutions to free spectrum to meet demand. Failure to do so would stifle the vast opportunities of mobile broadband along with opportunities for the entire U.S. economy. America's global competitiveness is at stake.
Incentive auctions will help ensure our continued leadership in wireless innovation. They will provide an innovative, market-based approach for repurposing spectrum for flexible use. Not only can incentive auctions help meet the demand for spectrum, but they will open up new business opportunities for current holders of spectrum licenses. It's win-win.
Top economists, engineers, and experts at the Commission are working diligently to get the job done as efficiently and effectively as possible, with openness and transparency.
The Commission's goals for incentive auctions are multifold:
- spurring investment and innovation
- driving economic growth and job creation
- enhancing global competitiveness; and
- benefiting consumers.
Moving forward, the Commission values input from all stakeholders, public and private, to ensure that the full benefit of incentive auctions is realized.
