Taxpayer Property for Sale

Of all the real estate U.S. taxpayers own, perhaps the most obscure jewel is the airwaves. While not visible like, say, the White House or Yosemite National Park, the entire electromagnetic spectrum that the Federal Communications Commission allocates to radio and TV stations to “serve the public interest” is worth an estimated $367 billion.

The government historically has provided the spectrum to broadcasters without charge. Now, it would allow them to sell at least part of it. On Sept. 17, with the attention of Americans turned elsewhere, the FCC announced it would let broadcasters auction some of the airwaves they were given in 1996 to develop digital programming. The broadcasters would get to pocket the resulting billions of dollars. Bud Paxson, chairman of Paxson Communications, celebrated the FCC decision, saying “broadcasters are going to be in for a windfall.”

On Thursday, when the Senate Commerce Committee meets to examine the FCC’s policy shift, legislators should press agency Chairman Michael K. Powell to think again. The least that government should get is a share of the proceeds. Even better is a suggestion by some legislators that part of the airwaves up for sale should instead be used to boost communication capabilities for police and firefighters.

Broadcasters persuaded Congress to give them new channels in 1996 by saying they would use them to convert the nation’s 1940s-era analog signals into new, ultrasharp, interactive digital TV. Industry lobbyists helped Congress craft legislation, saying that once 85% of Americans were watching digital TV (which they said would happen by 2006) the industry would return the analog channels to the government.

Today, halfway through the supposed transition, fewer than 1 million Americans own digital TVs, and industry analysts say they can’t even project a year in which broadcasters will be able to return the analog spectrum.

With so little apparent demand by consumers and interest by broadcasters, it may well be better to use the spectrum for “wireless broadband services” like the sophisticated computer/cell phone hybrids already available in many European countries. However, simply letting the networks sell off what they received free snubs the public interest.