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FCC chairman pushes policy agenda

LAS VEGAS--On his first visit to CES as chairman of the Federal
Communications Commission, Julius Genachowski on Friday reiterated key
policy objectives to free up more wireless spectrum and encourage
competition in the TV set-top box.

FCC chairman Julius Genachowski
(Credit: Federal Communications Commission)

Top on the chairman's list of issues to emphasize while chatting with
Consumer Electronics Association President Gary Shapiro here at 2010
CES was the need for more wireless spectrum to be used by wireless
broadband providers. He said spectrum scarcity is a key issue that he
faces on a daily basis as he deals with communications policy. And he
said it was crucial that the agency deal with it sooner rather than
later.

"Some people assume that all broadband is wired, but it's also
wireless," he said. "Our data shows there is a looming crisis. We may
not run out of spectrum tomorrow or next month, but it's coming and we
need to do something now."

He said it's not only important to reallocate unused or underutilized
spectrum, but it's also important for the agency to look at ways to
ensure that the spectrum that is currently being used is being used
efficiently. He said the FCC is looking into whether the agency can
play a role in providing incentives or encouraging equipment makers
and software developers to create products that use spectrum as
efficiently as possible.

"We are asking the question of whether there is something we can do to
incentivize greater spectrum efficiency in devices and software," he
said. "I don't know that there is anything we can do in the short
term, but it's a question that we need to ask."

He said the agency should also look at the role it might play in
encouraging incentives for future research and development in this
area as well.

Genachowski has made these points about using spectrum more
efficiently in previous public appearances. And he has noted that the
FCC also plans to look into increasing spectrum flexibility and
opening secondary markets for licensed spectrum use. He has also said
the agency will look into allowing more use of unlicensed spectrum,
such as the "white space" spectrum that sits between broadcast
channels.

But the most controversial proposal he has put forth involves taking
away spectrum from current spectrum license holders, such as TV
broadcasters and government agencies, and reallocating those licenses
to broadband wireless providers.

The transition from analog TV to digital TV, which was completed last
year, has freed up a lot of spectrum. And the FCC sees that some of
this spectrum could be reallocated for wireless broadband use. But TV
broadcasters have made it known that they will not be giving up any
spectrum easily.

The National Association of Broadcasters says that much of this
spectrum will soon be used to deliver new broadcast services such as
mobile DTV. The standard for mobile DTV is now complete and will
finally allow TV broadcasters to send signals directly to mobile
devices, such as mobile phones. Broadcasters and device makers were
showing off prototype products here this week at CES and a trial will
begin in March in Washington, D.C., with a select group of consumers.

Chairman Genachowski acknowledged that new use cases are emerging, and
he said the FCC would take those into account as it evaluates where it
will get the needed additional spectrum. But he also emphasized that
the need for more spectrum for wireless broadband services is so great
that some spectrum will have to be freed up both from broadcasters and
from government agencies.

"Based on the amount of spectrum that will be needed to meet the
demands of the country, we will have to find spectrum from government
and commercial uses," he said. "It's too early to say where a
reasonable place is to get that spectrum. But it's hard to see a path
where we don't have to reclaim some spectrum."

In addition to freeing up wireless spectrum, Genachowski also touched
on another important policy objective: encouraging more competition in
the TV set-top box market and connected TV markets. He said the
statute that was put in place to encourage competition in this market
and the previous efforts to get CableCard technology into the market
to make consumer set top boxes available have failed.

And as a result, innovation has lagged in this area. Promoting
competition in this market is important, he said, because it helps
achieve the objective of the national broadband policy, which aims to
provide universal broadband access to all Americans. And the reason is
simple, he said. Today, only 75 percent of households have a computer.
But about 98 percent of households in the U.S. own at least one TV.

"We look at this and say that maybe TV can be a part of the broadband
solution," he said.

But he said it's clear that the lack of competition in this market has
stifled innovation.

"You look at the Internet that has millions of applications," he said.
"And you look at mobile, which has more than a 150,000 applications.
And then you look at the TV in the living room and you see that the
numbers are much lower than that. A big part of this has to do with
this issue and the fact that the CableCard experiment has not worked."

Exactly what the FCC will do to encourage set-top box competition is
not yet known. More details could be spelled out in the agency's
upcoming National Broadband Plan, which was supposed to be presented
to Congress next month. Earlier this week, the FCC asked Congress for
an extension on that report. And it now expects to present its plan in
March.